Some Problems with (Free Market) Capitalism

1. Money doesn’t perfectly track value. Unfortunately, many things people care about are hard (or impossible) to quantify. Thus, maximizing GDP is not equivalent to maximizing social welfare.
2. People sometimes don’t know what’s good for them. If they did, drug addiction would not exist. See second order preferences, which are not (really) captured by the market.
3. Free markets are not great at creating public goods (non-excludable and non-rivalrous). These likely would not exist in a free market where no individual has the incentive to create the highway. Also related to tragedy of the commons scenarios (see climate change).
4. Negative externalities exist: I deliver great value to you but screw somebody else in the process without having to pay for it (see climate change again).
5. Markets are biased to those who have more capital. But should the rich person get some billion times more power than the poor person? There is no safety net with the free market. Thus, we end up with glistening high-rises and sidewalks lined with homeless.
6. See other market failures.

Essentially, the problem is that there is no notion of being human in the free market — people are effectively mathematical objects, abstracted functions that supply labor using capital for production. Thus, human rights are upheld only to the degree that society knows and cares enough (which the market will then account for). As a result, rights will often get steamrolled.