

Capitalism is bad at pricing in externalities. It’s pretty good at using price signals to allocate finite resources to more productive uses.
Markets do not equal capitalism. You can have the efficiencies of free markets (worker owned co-ops which are market socialist) without the all consuming greed of capitalism.
Some European countries have a 40 hour work week maximum (volunteered overtime is allowed).
The US is still living in the 1800s when it comes to labor rights so we don’t have the freedom of a living wage for 40 hours of work.