Here’s a good analysis of some of the arguments put forth by people like Michael Moore in his new movie against Capitalism.
There really is no evil that the capitalist bogey-man can impose on you or I that we cannot resist. Even under capitalism, with all of its ills and problems crying out for solutions, a person can retain their moral dignity and their spiritual practice. I want to fix the problems of capitalism as much as Moore does, but not at the price of my soul.
We can have an honest debate over which types of policies are better economically, etc. But regardless of the results of the debate, the bottom line is that there are more important things than economics. There is a freedom that accompanies an economic system like capitalism that doesn’t exist in socialist and communist systems. And this freedom is essential to respecting the dignity of the human person.
I would think that is why the Church has not condemned Capitalism in the same way she has done to Communism (and aspects of socialism). Although, she most certainly recognizes the short-comings of Capitalism and the need for improvement upon it.