Capitalism is the only social system that “defangs” the political power of racists by banishing the initiation of physical force.
Capitalism is a system of individual rights — it is a necessary political condition to the banishment of racism, where it results in the violation of individual rights. The only protection an individual needs from racists is the protection of their rights — protection from the initiation of force, whether it be a knife held at one’s throat by a Black Panther or the noose held by a member of the KKK.
Observe the great American “melting pot” where the warring tribes of Europeans who were busy killing each other in Europe, were able to live relatively peacefully together when they moved to America.
What principle was the cause of this? Politically, the principle of individual rights — the foundation of capitalism.
The principle of individual rights and its underlying individualism is being eroded as the new racists of today, who are advocating that some individuals be granted political privileges based on their skin color and ancestry, i.e., “affirmative action.”
Under capitalism, such racist policies — carried out by the power of government — would be outlawed.
Under capitalism, the only form of judgment is the method of individualism — judging each man as an individual, i.e., by the content of one’s character, and not the color of his skin (ancestry).
Observe that a complaint about capitalism is that “all the capitalist cares about is money.” In one sense this is true when one observes that those who care about money regarding their business, care naught about the color of their customer as long as he delivers payment. Money and profit are color-blind.
For further reading and study: See Ayn Rand’s brilliant essay “Racism” in the Virtue of Selfishness and her article Global Balkanization in the The Voice of Reason.