The base of capitalism is that humans will try and outdo each other because they want the better product, as better products = more money. This is called the invisible hand, and it's what keeps capitalism afloat.
Yes, I know, with this system some people are guaranteed to be at the bottom, but it's only system that turns human's fatal flaw into the fuel that powers the engine, while other systems are based in generosity and honesty, hence as to why they (unfortunately) don't work.