Laissez-faire capitalism as promoted by Libertarians in the U.S. is the only moral economic system. It is the only system that allows man to be virtuous and leaves him free to act for his own good by means of his own rational mind.
One of the biggest problems with critiquing laissez-faire capitalism is that a working model has never existed in human history. Governments have always intervened to one degree or another in the market. Any time there is government intervention, the market will not function properly, and results will likely be negative.
Examples are often given where companies find it less expensive to settle with people who have been harmed by their products instead of actually fixing the products. But, if a company does not produce safe products, they are harming themselves in a few different ways. First, they are opening themselves up to additional lawsuits if the problem persists in the future. Second, as consumers learn about the safety hazards of a product, they are less likely to purchase that product, and often are less likely to purchase any of a company's products (after all, if a company has produced one harmful product and not done anything to remedy the problem once aware of it, then what's to prevent them from having additional products that are dangerous). Third, they are making themselves more vulnerable to competitors. If there is an inherent defect in a product, then it becomes easier for a competitor to produce a better product. Since laissez-faire capitalism recognizes that man is a rational being, and if given the chance the vast majority of people will act rationally, it is unlikely that a company would sell dangerous products for very long and still be in business.
Private certification and rating of products is another way that capitalism can prevent dangerous or worthless products from gaining a large market share. Consumer Reports is one example of such a rating program. Many people check the reviews offered in consumer magazines and websites before purchasing a product. Getting peer reviews is one of the best ways to learn more about a product before purchasing without any help from the government.
Government safety regulations in the markets can actually cause more harm than good. Lead paint is banned in the U.S., but that did not prevent Chinese toy makers from selling toys covered in lead paint here. Eventually the lead paint was discovered, but how many children were exposed before then? Parents assume that because there is government regulation and oversight that there is absolutely no chance that anything could slip through the cracks, and often don't bother researching things they purchase for their children.
The same goes for almost any product or service. We assume that because the banking industry is regulated that information we gather from a bank or mortgage company is going to be accurate and fair. We assume that everything they are doing is legal. We often don't bother to read the fine print and just trust whatever our banker or mortgage broker tells us. We don't perform due diligence. And we all see where that got us. If consumers would take responsibility for themselves and for their own purchases, companies would not be able to get away with the things that they currently get away with. A company that was dishonest, unethical, and did not care about its customers would quickly go out of business.
Under the current system, companies that are not successful or profitable are often propped up by the government. Oil companies get billions in subsidies (through actual financial subsidies as well as through government-sponsored infrastructure projects such as pipelines and roads run to remote drilling sites) and make billions in profits. Consumers still pay through the nose at the pump. But if the subsidies were removed, oil companies would start looking into ways to become more profitable, including alternative energy. The same goes for coal power, nuclear power, and many other polluting industries. If the subsidies disappeared, alternative energy companies would have a better shot in the marketplace, and consumers would have more choices.
The truth of the matter is that laissez-faire capitalism is the only moral economic system, the only system that allows people to pursue their own happiness and do things for their own good, instead of becoming sacrificial lambs for the "common good." When everyone is forced to make sacrifices for the "common good," everyone ends up miserable, except for the lowest, most corrupt elements of society (those who take the benefits stolen from others, but do not make any sacrifices of their own). How is this system just? How does this system help anyone? When a person is allowed to keep what they have rightfully earned (not that which is garnered from subsidies or coercive methods of obtaining wealth), and their neighbor is allowed to do the same, both are happier for it. When both are allowed to do the things they love to do just for their own sake, and without consideration for others (as long as what they are doing is not harming or coercing others), they are both happier and more fulfilled. These are essential elements to laissez-faire capitalism, and are just two of the reasons why it is the best and the only rational economic system ever devised.