capitalism creates competition, companies have to compete to get or retain customers. Look at microsoft and apple, In the beginning microsoft had the better more user friendly product, and apple was over complicated and largely outdated. Now the tables reverse. Perfect example of competition creating a better product or service.

And while I think we need capitalism, I think we also need a certain degree of socialism. Healthcare for instance does not benefit much from capitalism, since most insurance companies charge as much as they can, while providing as little care as possible, theres not much competition there to create value for consumers. And it's not like those consumers can do without the good and services they provide and so are forced to pay whatever fixed price the companies and providers determine.