Capitalism rests on the principle of individual freedom. Each person is free to achieve his/her dreams and to seek their private good. It is immoral for people to use force or coercion to take away or infringe on that right, as the "public" is but a collection of individuals, and the "state" is noting but individuals socially contracted to provide for their common good. It is NOT a good to take the livlihood of a person to benefit another. How do you benefit those in need? Through charity. Giving to charity is a good of itself, and when you make a state entitlement, you remove the blessing of giving to help another, from the giver, and you rob from the receiver their exercise of gratitude. one only does this if there is a compelling state need (famine, war, etc). In a free society, no individual benefits at the expense of another: men exchange the values they create in voluntary trade to mutual gain. If Communism or Socialism were better, it would have led the world in advancements and fed the world; in fact, both have been shown bankrupt and unable to manage the affairs of men better than capitalism, which produced (according to Angus Madison, Phases of Capitalist Development) incredible results. A free, capitalist economy has never existed anywhere in the world. The closest the world came to a free market was during the Industrial Revolution in Great Britain and during the late 19th century in the United States. The Industrial Revolution was a period of unprecedented economic growth and unimaginable improvements in quality of life. In less than two hundred years, the life of most people in the Western world changed from a a short life filled with poverty, plague, and near-constant war to a modern, comfortable existence that even the kings of medieval Europe couldn't have imagined. Since 1820, the leading capitalist nations have increased their wealth sixteen fold, their populations more than four-fold, their productivity twenty-fold. Annual working hours went from 3,000 to less than 1,700 and life expectancy doubled from thirty to over seventy years. The achievement of capitalism! Inequities exist always, even in communism.
It is a good thing, it provides incentive for those who work hard and take risks like opening new businesses. It needs oversight and regulation to make it fair, the current environment is an example of the lack of oversight having allowed the housing and banking fiasco. But if done well it has proven to be the best system in the world.
A pure capitalist economy isn't always a good thing. Basically the rich get richer, and the poor get poorer. While a communist economy isn't always a good thing either, as everyone gets the same thing no matter how hard you work or how lazy you are. That's why in the many countries use a mix system where there is government regulation since the government wants to have a strong economy while keeping its people employed and have a decent standard of living. This helps keeps the people happy, and keeps order in the country
Because it is. At least in this country it is. Is it perfect? No. But it the best system on the planet. People come from all over the world to THIS country with nothing but a dream and the WORK their butts off and they get it. The open businesses and succeed. They do it because they come from places where there is no chance to make it then they come here and they go it. It'd all a matter of how hard you work. It would better if big brother(the federal government) would let people live their lives without do much interference. But that's another topic.
Although not perfect (nothing is) Capitalism has raised more people out of poverty than any system ever devised in the history of man. Watch the PBS series Free To Choose by Milton Friedman. He explains it simply why it is the best. http://miltonfriedman.blogspot.com/