As with a similar topic, this is not a question that someone else can answer for you. Look into the facts of capitalism around the world; where does it work? Where doesn't it work? Do we ascribe it more or less importance depending on where it is located? Why do we define "Capitalism" as one specific thing when there are so many different forms, and why do we commonly assume that our version, flawed as it may be, is somehow worse than other forms?
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(I myself would go with answer 2, qualified to add that no business wants to erase its consumer base; when you run out of consumers, you run out of business.)