For he says:

Capitalism must be managed and regulated to work for the common good

Indeed so, indeed so. This bit where we start to disagree:

Of necessity enter the state, much better designed than at present.

Not that we’re going to get this cod Latin right, but the big questions is “Quis Regit?”

Not whether regulation is necessary, that we agree, but who regulates?

That regulation is the function of markets. Capitalism, pure unadorned and unregulated capitalism, would not be a fun time. But we as individuals, we in aggregate as consumers, regulate capitalism. Further, the free part of free markets, the freedom to enter the market as a supplier (or even a capitalist) regulates, through competition, what capitalists may do.

Willy’s answer to “Quis Regit” is Willy and correct thinking people like Willy. Our answer is us, we the people, by our daily actions.

Note that not even Willy thinks the state as it is currently organised can do that regulation. We simply apply that observation to all states, ever. We also have history on our side on that.

Sure, capitalism requires regulating, the people to do that are the people, the method is free markets.