Sole purpose of the capitalist is the transfer of wealth to himself

Capitalist -- Def'n: Trained and state-sanctioned con artists, whose goal is the transfer of wealth from others to himself, to profit line his wallet at the expense of others.
True

Money is like energy, it cannot be created or destroyed.
Utterly false. The Central Banks create or (rarely) destroy.

That is why business is illegal in communist countries, since if one gets richer then others must become poorer.
Utterly false. Business creates wealth. It builds factories, offices, homes, etc.

And that is also why democratic countries need systems to compensate victims, such as the constitution, bill of rights, labor laws, health & safety regulations, employment insurance, pension plans, minimum wage, immigration laws, business licenses, unions, and so on. These systems keep the people happy, who in the days of ancients would be called slaves.
Humbug. Victims, but not slaves.

Today, the rich are less visible, but that 1-percent who control 99 percent of the wealth still exist.
They are more visible than ever.

Capitalism is so successful because it has found a way to enslave a large population.
Barf. People are not enslaved. Slaves don't own property, drive their own cars, and, most importantly, complain about the system in public.

Of course it will outperform, with hundreds of millions of slaves working night-and-day.
Communism had vast numbers of slaves (and still has where it is in power). Yet it did not work at all.

Is there a government department that doesn't in some way offset an inequity created by capitalist activity?

Capitalism is not inherently evil. It has been hijacked by the notion of "profit over all else" and converted from an economic system to a system riddled by widespread theft. Capitalism can be reformed. Communism is hopeless.