That's not an answer. That's just restating the name of your position.
Here's an example: suppose I buy a bunch of woodworking tools and put them in my garage. I now have a woodworking shop which I can use to make and sell furniture. Is that capital? Am I required to surrender my garage to the authorities?
Depends on what is democratically decided as the rule. The idea of buying a bunch of woodworking tools for the purpose of selling furniture is probably off the table (haha).
Because woodworking is a fun hobby that you can turn into a business. Because I value craftsmanship and attention to detail over mass-produced furniture. Because I believe in independent artisans, apprenticeships, and the sharing of knowledge.
If you are in favour of a world where this is not possible then I want no part of that. That sounds like a horrific dystopia!
I also believe you put far too much faith in democracy. Look at the democracies we have around the world today. Sure, they are not as bad as the totalitarian states but they are far from perfect. Democracies are also struggling from a crisis of faith in institutions. How are you going to build a collective society when everyone has lost faith in institutions?