Critiques of capitalism, especially the kind in America, are totally fair and should be more widespread. With that said, the mistake to me is thinking that Communism is a perfect solution. It’s main flaw is the same as Capitalism in that it’s putting the responsibility on human beings to fairly administer said system. And humans are fallible, so whether it’s an out of control free market or an overly planned economy by an overgrown bureaucracy you’ll run into this problem.
There are other options, like libertarian socialism, where there isn't any more bureaucratic control than in modern capitalism, but you just change the systematic incentives to favor redistribution and sustainability of resources. Unfortunately, the modern system isn't really "hands off", but is explicitly designed to promote profiteering, resource extraction, and accumulation of wealth into a few hands.
The best way imo is a mixed economy with both systems. Capitalism breeds innovation while Socialism/Communism protects more vulnerable people and humanizes the economy in certain aspects.
Why do you think capitalism breeds innovation?
In my experience on the science side of things, capitalism is just as likely to stifle innovation as to promote it. Most people who profit off of innovation had nothing to do with developing it, they just jumped on the bandwagon afterwards and took credit for it. Look back over history, and the people who invented shyt were rarely the ones who profited off of it. That's why people think Elon Musk is some sort of creative genius, when he just acquired shyt like PayPal and Tesla from other people. (Ironically, the only reason Tesla has succeeded was due to massive government subsidies that overcame "market forces".) Generally, the people who pursue true innovation would do so regardless of capitalist motivation, the capitalists are just parasites who jump in once the idea is already successful.
Another problem is that capitalism puts money into the ideas that make money, not the ideas that help humanity. Car manufacturers make more money selling private vehicles than improving public transportation, so we have billions of dollars put into giant, unnecessary SUVs that were destroying the planet. Electric cars have been around a hundred years, but no finances put into R&D because the oil industry wanted to keep selling oil. Way more money spent advertizing for beef, or promoting junk food made from soy and sugarcane and palm oil plantations that are destroying the rainforest, than is made developing sustainable agriculture. Capitalism means that enormous funding is spent on erectile dysfunction, baldness treatments, fertility treatments, and any diseases like high blood pressure that impact rich people, while preventable diseases like malaria, tuberculosis, and diarrhea, which primarily impact poor people, hardly get any attention at all.
It's most obvious when you think of the arts. Does capitalism actually create better music, or does it simply push people towards derivative bullshyt? Does it make better movies, or does it just mean that the 45th Marvel picture will be coming out soon and that remakes, sequels, and adaptations will always get produced before anything original? The people who make the truly original stuff, the truly interesting stuff, are usually the ones who can just barely scrape together enough funding to get their project together, and often as not by attracting funders who don't expect to make their money back.
And it's why we rushed into social media, smartphones, and now AI, without really examining whether they were good for society or bad for it, because everyone is too afraid of losing the profit advantage and making profit matters more than looking out for the welfare of the entire society.