Capitalism is a system of distribution of goods with a basis of private property and competitive markets. In the past it has been praised for high rate of innovation and low costs of goods compared to older systems such as feudalism and aristocracy where small states subservient to a crown owned and managed industry.

Cool. Now tell us why it's been condemned. You've only got half the definition there, and that doesn't count as an honest explanation.

(Also: capitalism may work like that in theory, but it's never been fully implemented in practice. Every so-called "capitalist" economy has the rich putting their thumb on the scale to make markets less competitive in their favor. The "economics 101" definition you give is so simplified that it's useless for describing any real world economy. But that's another rant.)