How does this have anything to do with capitalism?

The same politicians banning people from using the only shelter they have left are the same politicians who prevent the same people from running their own businesses by raising the barrier to entry artificially. Want to sell grilled cheese sandwiches? Not in this politicians backyard (without business license and permit that is).

OK, but where Is "unchecked capitalism" happening? Surely NOT in California.

Part of this is the result of capitalism (for better or worse), sure, but this story is specifically about government trying to take a broom to a certain part of the population, and sweep them out.

The Bay Area's income/wealth inequality is criminally disgraceful, but "unchecked capitalism" is probably a little too vague a description of what's going on.