We currently have we a massive, omnipresent, and very expensive central government. Why not use it for helping 99% of Americans, rather than the 1%? Our government is controlled by the wealthy for the wealthy of the wealthy. Seems to me changing this dynamic is far easier than attaining a libertarian society. Time for our government to enact policies that help the poor and MC.
And I think this is naive in the extreme. You cite the reason right in your post. Government will always be controlled by people who have the most to gain from controlling society. It will only ever placate the poor - just enough to keep the war machine running. But it will damned sure keep them poor. It will never act in their "interests".
This is the core conceit of liberalism: if we just give government more power they'll be able to solve all our problems. But it doesn't work that way. Government having too much power is the source of many of our problems as it is.