Pure Capitalism has failed with the pre WWI power States dividing up all the Land in the world.
Um. That wasn't pure capitalism. That was (at best) State capitalism. But I feel we might be falling down the definition hole here. Pure capitalism is simply this: Private ownership of the means of production (land, money, machinery, etc), and competition of producers in a free market for profit. For a society to be called "pure capitalism" that principle must be applied to
all industries, including defense and justice, two industries which the State traditionally monopolizes in the name of the public. Thus, in order for "pure capitalism" to exist, there must
not be a State. And it is precisely this monopoly which caused the failure of the markets built around it.
Almost 70 years before WWI, Gustave de Molinari outlined the conditions which inevitably caused it:
Everywhere, when societies originate, we see the strongest, most warlike races seizing the exclusive government of the society. Everywhere we see these races seizing a monopoly on security within certain more or less extensive boundaries, depending on their number and strength.
And, this monopoly being, by its very nature, extraordinarily profitable, everywhere we see the races invested with the monopoly on security devoting themselves to bitter struggles, in order to add to the extent of their market, the number of their forced consumers, and hence the amount of their gains.
War has been the necessary and inevitable consequence of the establishment of a monopoly on security.