"Compare to what" is always the question we should keep in mind.

Children worked since the beginning of time, not because of capitalism but because if they didn't they would starve to death. The fact that kids don't have to work is only possible because the productive capacity of each individuals have increased tremendously through capital investment in the factors of production. We have now the luxury of not having to send children to work. Pass a law in a poor country that make kid work illegal and death will follow. (or they'll end up in the black market for prostitution)

Almost everywhere where private property, rule of law and an ease of starting a business has been applied prosperity followed.

Almost everywhere central planning and forced distribution has been applied, starvation and destruction have followed.

This is empirically true. Singapore, Hongkong, Chile, the US, New Zealand, Estonia, etc. are just a few example of what happen when you follow those basic principles.

Could it be better? Of course.

Here are the only options I see now:

1. You either focus on making capitalistic infrastructures that bypass government and rewards it's users directly. (Mutual Aid Society Style)
2. Give more power to governments...which will attract big business who will want to use that power to maintain their monopoly.
3. Create a totalitarian super computer that decides for us where resources should be allocated...whether or not we agree with it. (Venus Project style)
4. Stay on the sideline and see how this unfold.