Capitalism , as an economy , a way to distribute scarce resources , is hugely inefficient , wasteful , and irrational . Enough food is produced to feed nine billion people , yet most goes uneaten , while many of the seven billion people that all need food and water at a bare minimum to survive , don ' t get enough . Capitalism fails as a form of economy . It ' s not at all natural for less than one percent of all people to control more than 99 percent of the resources that everyone needs to survive , no matter how much thriftier or more skilled they are than the average . You can ' t grow your own food without land to grow it on . Good luck defending a claim of ownership over land in a capitalist society without a state . Redistributing wealth is a way of reducing the harm done by capitalism and the extreme wealth inequality it produces , but any anarchist would agree , the state is ultimately the same kind of evil as capitalism the evil of hierarchies of power . Wealth redistribution , ideally , is a way of turning the two evils against each other and producing a little good , although it rarely works out that way . Edit also , capitalism relies on the state . Without the state , capitalism would either collapse or more likely produce a new state .