“The real problem of poverty is not a problem of “distribution” but of production. The poor are poor not because something is being withheld from them but because, for whatever reason, they are not producing enough.” — Henry Hazlitt
Capitalism did not create absolute poverty, but it inherited it from pre-capitalist systems. Far from being a cause of absolute poverty, laissez-faire capitalism is the only solution to solving it.
Observe that the freedom that a rich man needs to maintain and add to his wealth, is the same freedom a poor man needs to create his wealth — and the creation of wealth for both has the same root — reason.
The only requirement of reason from the state is entirely singular in principle: freedom, that is, the banishment of the initiation of force from all social relationships. This is precisely the freedom that the “humanitarians” oppose, since this “right” to freedom and liberty, can only come at the expense of the alleged humanitarian’s “might.” Since all men are free to create wealth under capitalism, no one is forced into poverty, as in non-capitalist countries.
Keep in mind that the moral justification of capitalism is not that it serves the “needs of the many,” but that it protects the rights of every individual — in particular, it protects the individual from the “many” (majority). Capitalism is not egalitarianism ideal of “social justice”; capitalism is for justice.
Capitalism is the best — the ideal — theory, because to the extent that it is allowed to work, it works in practice.