Just as there are no perfect people, there are no perfect economic systems. So the question is, what economic system can be made to work the best given the shortcomings of human nature, and what would you want this system to do?
You would want a system that creates wealth for all the people, maintains individual liberty, prevents the concentration of power in the hands of a few, freedom from overpowering government and confiscatory taxes and a system that rewards ingenuity, hard work and thriftiness.
So what economic system works best at achieving these objectives? Capitalism. Capitalism was invented because all other economic systems, throughout history, have not been successful. The brilliance of Capitalism is that it uses the innate desire of a person to better their life in a constructive manner. Capitalism promotes freedom and choice through competition. Power and control is dispersed and there is much opportunity to compete. America developed a Capitalistic system for very good reasons - it works better than any other system.
Economic freedom and political freedom are inseparable. Maintaining freedom is just as important in developing economic policy as it is political policy. Preventing the concentration of power in the hands of a few is as important in economic policy as it is in political policy. The collective good will and ethics of the people is as important in maintaining a healthy economic system as it is in maintaining a healthy political system. It is VERY important to understand that Capitalism requires more personal responsibility than socialism.
There is no acceptable substitute for capitalism. When there are issues with the proper functioning of capitalism, it should be reformed and saved - not done away with for an inferior economic system.
Big Government blurs the distinction between capitalism and socialism. For instance, what would happen to a business that was inefficient, corrupt and mismanaged.
• In a socialist economy - taxes are raised and the company gets more funds from the government.
• In a capitalistic economy - the company goes out of businesss from competition from better run companies, or reorganizes under bankruptcy laws.