With that in mind, let's go into further detail as to why capitalism is a morally superior choice to socialism.
- Competition. Socialists will opine that one of the reasons that capitalism is evil is because the competition it promotes is so cut-throat that it leaves people behind. One of the things that socialists need to realize is that no matter which style of governance you choose, there will always be competition. Competition is omnipresent in human nature. Humans compete not just for jobs, but also for things such as love and honor. The difference between capitalism and other economic systems is the way capitalism channels that competitive drive more constructively. Property is obtained by peaceful means. This leads to mutual cooperation between the consumer and the producer. Since property rights are a hallmark of capitalism, the Golden Rule becomes a given in a capitalist society. Socialism, on the other hand, does not have such peaceful methods because it is zero-sum. There are those who win and those who lose. Socialism forces that the consumer's will to be that of the government. In the extreme situation, you go to the gulags if you don't comply. In most situations, you have to wait in line to get your goodies from the government, and it usually involves getting elbowed out of the queue and having to go to the back of the line.
- Profits. There go those socialists again, talking about the evil of profit-making. "If only we could go back to a simpler time, we would not have all these problems." The problem with socialists is that they are in a pre-capitalist mentality. Prior to the advent of capitalism, the world was one big pre-Industrial hellhole. People during those times worked longer hours under worse conditions just to survive. Unless you were that less than one percent who happened to be an aristocrat, being able to thrive or "live the good life" was not an option. This is evident in modern-day Third World countries. If you meet a rich person in a Third World country, odds are that he came about his wealth through crime and true exploitation. In a capitalist society, you know that a rich person became rich because they made a positive contribution to society, not because they took from others. Such innovators as Andrew Carnegie, Bill Gates, and Mark Zuckerberg come to mind. That is why contrary to popular belief, most millionaires in America are self-made, first generation millionaires. The other joy of capitalism is that when a rich person has a luxury item, you know that it will become commonplace in a matter of a few years because the rich subsidize it. This was true of cell phones, air conditioning, the Internet, indoor plumbing, and many other inventions. Everyone benefits from innovative people, not just the rich. That is why the creation of one's wealth does not decrease the well-being of another individual. The Invisible Hand guides the economy where the individual good is also the common good (i.e., positive-sum game).
- Equality vs. Freedom. To continue from my previous point, socialists will complain that people do not receive the same amount, which means socio-economic disparity. Although I am sure that certain socialists mean well, it's amazing how in socialist societies, people become equal......equally poor! The reason that a socialist society becomes equally poor in the long-run is that if you take the notion of economic distribution seriously and have it permeate enough in societal institutions, everyone will have the same salary. This will greatly disincentivize specialized labor to pursue certain fields (e.g., doctors, research and development, larger business). If you're going to get the same amount regardless of what you do, why strive for greatness? In capitalism, you unquestionably have freedom. With that freedom, you have the option between making a right choice and a wrong choice, which people like to call free will. In a socialist society, you don't have the leeway to make such choices. The advantage of capitalism is that it provides us the ability to actualize our own morality. Coercion is no gift. True charity and virtue come through exercising it freely, thereby making it more satisfactory of a moral achievement.
- Self-interest. Self-interest is another one of those facets of human nature that we cannot evade. The Invisible Hand guides that selfishness into a constructive output both for the individual and society. That is why in capitalism, economic freedoms give individuals the right to exchange and transact freely. You can choose to live where you want, pursue whatever career you would like, explore pastimes, and spend money on luxury and travel. In capitalism, it's not about blind greed. It's about an enlightened self-interest that provides you with freedom and rights. In socialism, your "rights" are the ill-defined wishes of governmental officials, and those officials are only responsible for the wishes of the powerful. To quote George Orwell's Animal Farm, "All animals are equal, but some are more equal than others."
- Tolerance and Rule of Law. Capitalism also promotes tolerance. In socialist societies, you're just another number on a bureaucratic form. In a capitalist society, people of different cultures, races, ethnicities, values, and world views can live together without rancor. Why? The Golden Rule! If you damage someone's property, you are responsible to compensate for that damage. Since a capitalist society holds people accountable and to act more responsibly, the quality of property is more pristine than that in a socialist society.
For more on the morality of capitalism, please read The Morality of Capitalism, which is courtesy of the Foundation for Economic Education.