The premise of this question could do with some investigating. What is capitalism? There are different sub-definitions you could bring up. read more
Another solution to scarcity which is more connected to the times we live in than it is a general concept, is reform of the usurious pyramid scheme monetary system we live in, which again capitalism probably does more to hinder than help solve. read more
A capitalistic system is a system where the economic activities are left to the freeplay of market forces. Therefore, the production of goods and services are decided by the market forces which are demand and supply. The producer produces those goods which have more demand so as to maximize his profit. read more