Explaining Capitalism to Non Capitalists

From a FB response to someone:

Your logical fallacy is thus: Only a large government can solve this problem. The government has failed to solve this problem. Therefore, this problem is unresolvable.

Clearly, if large government can't resolve the problem, a different approach is needed. As the two following posts pointed out, without large governments, the fascistic enterprise we've engaged in since 1948 (When State Dept went on record that large oil companies could be useful for creating in...