True capitalism always allows for healthier competition. Socialism does not offer any reason for people to put effort into their work because, regardless of what is done, ideally everyone gets the same result. Capitalism encourages people to do their best allowing benefits for hard work. This is why it saddens me when our government tries to bail out failing companies. If these companies were left alone these financial issues would work themselves out.
Capitalists often use monopolies to put other companies out of business, so they can do what they want to prices, which is uncompetitive. However, high corporation tax makes companies leave. Restrictions on the market that prevent monopolies while keeping corporation tax low works the best, so that companies compete and don't leave.
Socialism has been proven to allow for competition for the people's attention because it is specifically designed for the people's benefit. Many industrialized European nations practice Socialism on a large scale and have been shown to increase quality of life, minimum wage, and overall economic health. Capitalism, on the other hand, is very individualistic and depends on harming others to get ahead. It also creates an atmosphere of unfairness, where the lucky survive.