My understanding is when people talk about capitalism in this context, what they are referring to is a system like ours where there is a class of wealthy capitalists who purchase and maintain ownership of the vast majority of businesses without taking part in any of the real day-to-day work of the business.

This results in decision-making that does not look long-term, as the owners of the business do not really care if the business or the workers do well, only that their balance sheet does. It causes many of the investor-driven layoffs and shortsighted cost cutting measures, or “enshittification” as it is becoming popular to say.

The other options, instead of purely capitalist-driven business ventures, are things like co-ops or services that become public utilities. The goal of the company is not just to funnel money upwards at any cost, the people who own the work are also the ones who are doing the work. It makes for better quality products as well as better quality of life for the workers.