I think neither capitalism or Communism exists in its purity. It is not possible to have a 100% capitalistic society the same way it is not possible to have a 100% socialistic society.

Even if we consider USA as the most capitalistic country in the world, we see socialistic flavors in Medicare, Social Security, food stamps, Unemployment benefits, public transportations and Free Public Education, Most argue that the prosperity that we see in US today is the fruit of capitalism but the root of this success is the free public education for every WHITE MAN some 200 years ago. It gave base for huge resources for technological advances it had in last 200 years compared to the rest of the world. That technological success led to the millitary might resulting into being able to dictate the currency exchange rate, labor rate, unfair international laws, massive movement of labor forces, and political might. The point is, its not all capitalism that made US prosper. The head start on free public education made them a millitary giant and the millitary power is letting them get the best out of their capitalism.

The problem with Capitalism is that the ones with more resources work on increasing their resources more and more....and the one with more always gets more...and the one with less gets lesser back. Ultimately this leads to a situation where majority of the resources are with very few individual's hand and the concept of FREE MARKET no longer exists. The FREE MARKET becomes the RICH MAN's MARKET.

The good thing about capitalism is that it is supposed to create prosperity for those who want to work hard and get more. It creates wealth, creativity, and gives person the satisfaction of the ownership and achievement. Capitalism promots rewards for hard work and success and is brutal for failures.

The problem with Socialism is that when there is a social safety net intact people tend to depend more on the safety net and lose their creativity. It might encourage lazyness. It also goes against the basic anmalistic instic of human nature. Its in our nature to want more and take more than anyone else. Similar to capitalism where the riches ultimately get hold of all the resources and become the economic dictators of the country, in socialism the ruling class eventually become a dictator as well.

Me, personally i prefer a mixed economic princple, the principle where you take the good points of each "ism" and fixes the flaws of each system. I like the political systems in Scandnavian countries, Singapore and Canada. In these countries there is a free market as well as strong social saftey nets.