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Capitalism is far far better than communism...as far as international advancement and theory is concerned.
However, the problems that hamper our society is our underlying social structure. We support only the cheapest of products, those made by slave labor. We turn a blind eye to predatory business practices. We allow companies to function for their own complete benefit without recourse.
Now, some might say that acting in the business' best interest is good for society. However, it should also be said that socially conscious business practices improve the bottom line. Government shouldn't reward businesses for helping the poor, the people should. We should reward good companies with our money, not bad ones.

But, even if we as a country fixed this problem, the international market would be a completely different story.

It's unfortunate....but it sure beats communism.