You act like capitalism cares about wealth inequality or living standards, they don't, that's why capitalists want mass deregulation or prefer migrants as they're willing to accept lower wages. Capitalists don't care if most of the population is poor, they care if their wealth is hoarded. The whole world becoming the third world would be beneficial as it just means more wageslaves. By the way, rainbow-haired feminists, drug addicts, and third-worlders are great consumers. Have you heard about "Black Panther" or "Starbucks"? For the drug dealers, just legalise drugs. Most capitalists support legal drugs, its a new potential business venture.

It is not self-defeating, if anything its successful.