True capitalism works very well.
The problem is true capitalism only occurs in isolated small pockets of the globe. Most of what people see as being capitalism is not true capitalism. This distorted form of capitalism does not work very well as it favors the few over the many.
Social welfare for the wealthy is not true capitalism. Yet socialists seem to have a thing about socialism for the wealthy that is acceptable and then bag capitalism.
Socialism for the wealthy was evident in USSR. In the USSR, the imperialists (sorry, the comrades who shared everything in common at the elite level) had every luxury imaginable at their disposable. The plebeians filled the lines in the streets at the food retail outlets to receive the allotted share of the few scarce products that were available.
Crony capitalism which is another name for fascism or socialism for the elite does not condone true capitalism.
True capitalism is based upon productivity of the individual. Pushing buttons on a keyboard and shuffling paper has virtually nothing to do with productivity that produces food, buildings, transportation, electricity (which could be free) or the engineering required for the production of goods.
The problem that has persisted throughout the millennia of human history is individuals desiring to rule over other people. This has nothing to do with capitalism and much to do with a desire for humans to seek personal exaltation at the expense of those they whom they can manipulate.
To suggest that it can be argued that capitalism does not work very well is to demonstrate ignorance of any understanding of true capitalism. Moreover, those who make such an argument demonstrate that they have no understanding of the difference between productivity and activity.
There are many activities that are not very productive even though they are pleasurable. Likewise, many people get pleasure from a cause, even though it is in vain, like ousting out true capitalism for socialism or communism, not realizing that the rulers of this world have opted for fascism in the form of corporatism—which is really imperialism in disguise under the impress of oligarchism.
Different nomenclature (e.g. democratic, socialist, imperialist, monarchical, fascist) are used for supposedly different systems of government. But in reality, these boil down to the ruling of the many by the few, for the sake of the few at the expense of many.
In a roundabout way "it can be argued that (true) capitalism does not work" in this current world's political and economic environment because the ruling elite are intent on seeing that it does not work and are at pains to stamp it out. Farmer's markets and roadside produce stalls are to be eradicated and everything is to be purchased through the corporation. Monsanto (for one) has been seeking to corner the seed market and provide vegetation that cannot flower and provide seed of itself. This prohibits true capitalism from flourishing and allowing for more proficient operators with smaller efficient operations from being competitors and meeting the needs of the consumer.
Unfortunately, people are indoctrinated into thinking that corporate socialism is capitalism. True capitalism does not permit inefficient operations to survive. More proficient operators will take up the slack. True capitalism permits the individual to shine, who will then be able to bask in his or her altruism once having experienced sufficient success.
True capitalism does not tolerate protective markets. Merchantilism is anti-capitalism, but is often mistaken for capitalism. This is the form of market protection that leads to colonialism and imperialism. Whenever tariffs are imposed and control of industries are sought at the expense of competition, then the market economy is compromised.
True capitalists are actually open to trade and equitable exchange of goods and services for just reward. Unfortunately, many people who purportedly advocate true capitalism are unproductive and therefore are faux advocates, because in their case, they would have to become productive and this could mean less income for more effort.
It cannot be argued that true capitalism does not work, because it does. The problem is most people are confused and do not understand the difference between true capitalism and other forms of government administration. This is because true capitalism requires minimal government and promotes local government as the most efficient means of solving problems. Unfortunately, true capitalism requires people who possess true morality and strong ethics to work. Since people are immoral and are inclined to covet, bear false witness, cheat, steal and commit other violations against their neighbors in certain respects, true capitalism cannot function world-wide, until the heart of every individual is pure.
Capitalism (true capitalism) cannot work globally because all people are not moral.
In closing, the reason it can be argued capitalism does not work is people do not understand what capitalism actually is and, even if they did, unless people adhered to an absolute moral code, it would eventually collapse along into a two-class system. Something that we are seeing happening within the global economies today.
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