I've written several posts on the difference between Capitalism and the Free Market.
In this legislation cycle, we've seen that big labor received big payoffs for its sizable investment in the Democratic Party. They've received special breaks on health care, special protections on their investments and, with a little help of from taxpaayers' money, controlling interest in the automotive industry.
This type of garbage has been going on for years in health care (which is highly regulated at the state level). Big insurance routinely makes big donations to progressives in both parties, and is routinely rewarded with regulations that drive out small insurance companies and hamper people's ability to self fund health care.
This type of collusion between government and big business is part of "Capitalism."
The term "capitalism" simply refers to a society that is ruled by the reinvestment of capital. A rich group invests in a political party. They receive great rewards from that party.
This purchasing of power is antithetical to the free market.
The Free Market an Capitalism are not synonyms and Libertarians have done themselves a great disservice by arguing as if they were.