[afiori]

This is quite a simplistic view of capitalism. Consider the Moloch effect[1] where rational choices in environments with hard coordination problems can lead to degenerating incentives.

Capitalism is not the same as free market; capitalism is rather a system where your economic power is mainly determinated by the amount of capital you have (money, investments, means of productions...) rather than class, bloodline, titles, popularity, or legislative regulations[2].

Capitalism is linked to free market in that they work well together: free markets want enterpreneuers to be compete for efficient capital gains and people with capital like how their economical power is only bounded by their capital (with the potential of an exponential growth). Apart from this ether can exist without the other.

This is how supporters would like them to work together, but there can be a lot of bugs and traps on the way.

[1]: https://slatestarcodex.com/2014/07/30/meditations-on-moloch/

[2]: This last one would be the characteristic of planned markets