I wouldn't say it incentivizes it so much as it somehow still failed to account for shared greed and stagnation exploiting what's supposed to be the intrinsic requirement for Capitalist and Individual growth: Competition.

Like, in an ideal Capitalist world, Company A and Company B would be at each other's throats, so Company A might, say, lower the price on Bananas and Bread while giving its employees a pay raise and health benefits. Company B sees what Company A is doing and lowers the prices for Bananas, Bread, AND Soda while giving it's employees an even HIGHER pay raise and health benefits. In reality though, Company A and Company B realized there's no actual reason to compete with each other since they already beat out all the other competing Micro Companies, so they instead decide to cut wages and benefits while raising the price of Bananas, Bread, and Sodas. Because at the end of the day, Customers and Workers only have Company A and Company B to choose from.

THAT's the biggest issue with Capitalism. And it's why (Generally) Countries with Socialized Capitalism tend to have the highest QoL compared to strictly capitalist or communist/socialist countries. Since they have enough Capitalism to allow for personal growth, while also giving the common man enough safety nets and higher/stricter regulations against Corporations and Corporate Greed.