Really? Pinochet was dictator before Friedman came around. It was not capitalism that destroyed freedom. In fact, it was the policies of the Chicago School of Economics that destroyed tyranny in a mere 17 years while Chile led all Latin nations in GDP growth. Capitalism does not ensure civil liberties, it is a neccesary condition however. If you read Friedman (I suggest you read Capitalism and Freedom or Free to Choose) you will see Friedman stands for maximizing both civil and economic liberty. Pinochet's Chile was not his ideal environmet. It was, proof of his theory that the free market would lead also to greater civil liberties. The world moves slow. Destroying a dictatorship in 17 years was pretty quick on the geo-political scale.
Men are greedy. It is part of our nature. Attempts to deny this part of our nature have always resulted inevitably in tyranny as the socialist fools becomes tools of the authorities. The only rational approach is to try to maximize civil and economic liberty while government is relegated to a niche of providing military and police power and certain public works.
You may not be a communist, but your ideas fit quite well with Marxist theory. You are another utopian dreaming of a world that can never be and not realizing the horrors that have been perpetrated by such dreamers is inevitable. Not realizing that it takes tyranny to crush mans desire to better himself. Capitalism is like democracy, a flawed system as all systems involving humans are, but the best system given human nature. Man must be governed or there is chaos (Iraq right after Saddam's fall is a good example). That government must be limited or there is tyranny.
Friedman on Chile:
"I have nothing good to say about the political regime that Pinochet imposed. It was a terrible political regime. The real miracle of Chile is not how well it has done economically; the real miracle of Chile is that a military junta was willing to go against its principles and support a freemarket regime designed by principled believers in a free market. The results were spectacular. Inflation came down sharply. After a transitory period of recession and low output that is unavoidable in the course of reversing a strong inflation, output started to expand, and ever since, the Chilean economy has performed better than any other South American economy."
The same can be said about capitalism concerning economic systems.