A professor once said that he had never failed even one of his students, ever, except for one time, where he failed the whole class. One might say that this method is wrong because it relies on intervening in what would otherwise had to be a very objective system, but for the sake of the experiment, analyze it with an open mind. 
The story is that one time, his students insisted on the fact, that in their opinion, socialism works as an idea and might also work in practice and is the solution than ensures no one will have to live in poverty anymore and suffer from it. The best solutions is for everyone to be equal.  
The professor (of economics) said "Let's have a little experiment. You'll take a test and I will make sure that no one fails the class."  
So they take the test, they sum up the grades of everyone and divide it by how many they were and everyone got a nice 8. As one would expect, the ones who actually studied got upset and the ones that didn't were thrilled.  
As the next test approached, the ones who studied very little now studied even less and those who studied intensely for the first one also studied less, because they wanted to get easy grades. This time however, the situation was different because the average was 6.  
Everyone became angry and ended up fighting and bickering with each another. 
The results of the third test was a surprise, because they ended up getting a 4 and failing the course. 
The professor explained that when the reward is large, the effort needed is enormous also. If you take away the prize, the work also diminishes and this has a grave effect for the future. The way in which we can evolve is by challenging and breaking barriers. 
Modern capitalism doesn't work as it should because the laws are not properly made and once one gets up the ladder he can buy his way out of many troubles. It's not the fundamentals of capitalism that are wrong, but the people who should look out for a FAIR game.  
In "Man of the hour", Robin Williams, who played a comedian who was running for the USA Presidency, mocked the other candidates by telling them they should change their suits with NASCAR suits, and instead of car companies they should have stickers on them with their campaign sponsors. 
The world is angry not because of capitalism, but because of the FALSE promise of prosperity, prosperity for individuals, not for the state.  
In the words of Winston Churchill "Democracy is the worst form of government, except for all the others"... and I think we can consider the same for capitalism... 
Fair competition forces us to grow and improve.