There is a lot to be said for capitalism. It is self-regulating, much more so than any number of commissions, panels, legislatures etc. It beats any form of socialism in that respect hands down. Second, it harnesses natural human psychology and drive, people will work hard and take chances if they know that great rewards are possible, and if they know they will be punished economically if they are lazy or stupid. It also brings out the pride of ownership in people, businessmen will work much harder and be much more conscientious maintaining their businesses than they would some vast organization where they are just employees. Third, it is nice to know that the citizen has access to and can contribute directly to his economic life without a clumsy and intervening government bureaucracy in the way.

On the other hand, capitalism interjects into the community a power center that is both local and extended. Local, in that each economic entity is interested in its own survival and nothing else. Extended, in that economic entities tend to collaborate to further their collective interests, and that they are interested in their collective survival and nothing else. You can't trust them any more than you can trust governments. In short, economic power is as bad as government power, indeed it can be worse, since the consumer cannot vote on his business leaders. All he can do is refuse to buy their products or work for them, and that is not always possible.

The key is to somehow combine the dynamism and efficiency of capitalism with the humanity and control of the law. And of course, where and how you draw the line as to which side gets what power is the hard part. But it is not impossible. Most Western European-type societies have done a pretty good job of this, and they are doing better all the time, in my opinion.

Of course, in any society, there will be conflict and debate as to how that line should be drawn. Which is why we fight here all the time.