This may actually predate capitalism. I know it was quite popular at least in some communist countries. For that reason alone I tend to oppose it outright. Communism was awful, at least for individuals and individual liberty. Capitalism may be far from perfect, but I don't think I'd prefer anything close to communism. You think the excuse "to protect you from terrorists" is being abused right now? You should've seen how much the "in the name of the people" excuse was being abused during communism. The terrorism excuse pales in comparison.
Exactly, it's always the same type of individuals in power, the question is whether you want those people to have more power over you or less.
Capitalism just limits the damage they can do, and turns their greed against one another.