“It was brought to its knees by precisely the issues which the Pope addresses in the encyclical.”
No, it was brought to its knees by government interference. Church interference won’t make it function any better.
The Church isn't interfering. But you know that. The Church's job is not to provide a precise road map or mechanism. The Church's job is to continually remind us that God and our fellow man come before selfishness, which the Pope does superbly in this encyclical.
Your statement that the cause of the crash was the government's fault, reminds me of the tired liberal cliche that crime is "society's fault". The temptation to blame a large, amorphous entity for our problems runs deep, even in so called "conservatives", doesn't it?
We both know better though, don't we? We know that both of these issues have their origin in the heart of man. The Pope knows this, too. The encyclical describes the bigger picture within the framework of a Christian perspective, which is not necessarily synonymous with American-style capitalism.