If private companies can't pay a living wage without laying people off/raising prices, doesn't this indicate that capitalism has failed?

If you know how money works, you know why capitalism always fails. It only works as long as people spend as much as they earn. "the enemy is profit"

The only reason capitalism seems to work, even when money trickles up to those who have no reason to spend it, is that we [or rather BANKS) constantly create additional money in the form of credit

No.  It indicates that you have no concept of economics, though.  That happens a lot within the "living wage" crowd, it's not just you.

The living wage is a myth, just so you know.  It's on the same level as the truckloads of faked ballots, the green new deal, and the giant lizards from outer space.  It's pure fantasy.

I consider a basic living wage as a job that will pay enough for food, and a bed.  You might have roommates, and you may not live in the best part of town, but it will be living.   Unfortunately many people have a very demented view of what they consider a "living wage", which makes it hard for certain types of businesses when you have people trying to force $20/hr wage minimums on them.    I get that certain areas are expensive, but there's a certain reality check where if you can't afford to live in an area you need to move.  The USA is a massive place and has a lot of affordable areas to live quite comfortably.

No...it means there are too many people working jobs that are not worth doing. No one is forcing people to flip burgers for a job. 

No.  You have it backwards.  Free enterprise works.  It has been going on since caveman days.  Employers should pay employees what they are worth to the company.  Living wage is a Democrat myth.

Or does it just confirm the law of supply and demand?

You obviously don't own a business and have been a government employee your entire life.  God bless you. 

I don't think it's a matter of " can't ", they don't want to it cuts down on their profits.

If a company can't \ won't pay a living wage, they should not be in business.

Nope try again...

can't pay a living wage or won't pay a living wage