One of the statist fallacies is that there exists people who are more intelligent and virtuous than everyone else; nobles who need to tell the uneducated masses what to do. The problem is that no such man has ever existed that is able to resist the temptation to abuse his powers. (Except for that one guy 2000 years ago.) So statism fails to help the people, as the leaders help themselves instead. Capitalism at least tries to work around this lack of virtue, as Friedman puts it.

Hat Tip: Big Hollywood