I, in fact, agree that capitalism is fatally flawed. I even began a thread about it awhile back:
http://www.subsim.com/radioroom/showthread.php?t=154340
On the other hand, I also agree with August - its the best we've got. Considering that we're in an era of unchecked population growth and limited resources, capitalism is the only thing close to "fair" economics there is.
Ultimately, however, it WILL fail for reasons outlined in the thread linked above.