Capitalism is a subset of local governments and does not pretend to govern in its pure form. Many socialist governments closely control capitalist pyramids for their benefit as did Italy in the 1920s and Germany in the 1930s. What is very clear is that capitalism is admittedly an excluding process and not even remotely inclusive with respect to entire populations or even small groups in a given region of the planet.
I maintain that capitalism is the natural default social mechanism of sharing and production by small groups and that when significantly perturbed the elements that were used to generate this capitalist system, however small, are scattered or dismembered for a time, but those elements will spontaneously recombine with new players and new resources and even new places if necessary and is thus regenerated anew. No matter how large a corporation may get it is only an ensemble of smaller departments or divisions that are subdivided and controlled by middle management.
The only process that prevents the broad-spectrum rise of capitalism is government or some similar force that directly focuses negatively on the capitalistic progression and these are usually shown to be places of high poverty, oppression and failures like North Korea, Cuba, the USSR and parts of Eastern Europe or just about anywhere in Africa. Those forces must dismantle or prevent commerce from operating in free markets to be successful then they have to provide for their citizens what capitalism could have provided and frequently they cannot do so.
Capitalism is self-regulating and continuously improving—two attributes conspicuously absent in many forms of government. The profits from capitalism are viewed as evil and greedy until one realizes that such wealth is useless if not used to form new pyramids or to buy goods and services or build real estate. Capitalism produces capital as its product and this is usually money at risk for expansion or held to be used later. The theory that capital is used to create new jobs is offensive and mysterious to many in the leftist political camps who believe that government can create jobs, and it cannot. Many liberals cannot bear to think about the fact that 99% of the tax revenues in the US come directly or indirectly from businesses or from taxes on salaries of their employees. Many think the government can ‘create jobs’ but they only create parasitic bureaucratic or other questionable positions that burden the taxpayers. Such arguments, though true, inflame the left who have nothing in their future except what they can drag out of higher taxes and regulations. California is the best example of how not to run a government outside of Cuba or a few spots in Africa.
Capitalism creates efficient jobs by definition and when those jobs become inefficient they are summarily eliminated or the job holders retrained or given new assignments. Marxism is a failed ideological system that originally attempted to capture and redirect profits from the capitalists and return them to the masses with government control and ownership of the means of production, but that was never the case in practice.
I suggest that capitalism [in whole or in large parts] is essential to good government and the more resources that are directed by persons who can produce growth allows the best state for the citizens.