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Nobody invented capitalism, it just developed from people buying and selling stuff. Specialization meant people didn't produce all of the things they needed themselves. So people had to trade. From there systems developed.
And it's generally a good thing that people can choose for themselves what they value and buy the things they want. What's important to you, won't be important to me. There won't be a world where we all want the same things unless you make it so everyone in the world thought exactly the same way. And that doesn't sound like a better world to me.
You are reading this on an electronic device. Do you need that device, or is it a luxury? In the Soviet Union they decided only party leaders needed telephones, so only the party leaders had them. Seems convenient logic whenever those with power need things everyone else doesn't, but you can understand the logic. Why would someone working in a factory need to own a telephone?
It's better to have people have the choice about what they want to buy and have a system that's simply producing the things people want to buy. But that means some people will buy luxury items. But how do you even determine what is a luxury item? Is a telephone a luxury item? If people can buy what they want and items people want to buy are being produced and the price of those items is determined by the value of the resources used to make those products, no one needs to worry about what is a luxury and what isn't.
Yes that means some people will get wealthy. How about just taxing the wealthy people?
Ultimately every system ends up with inequality. Somehow it needs to be determined what people need and what are luxuries they don't need. People in power will always decide they need to have more than everyone else. Best you can do is have an educated population that has the ability to remove people from power when they abuse it. But even then, people will be stupid and get scammed. But that will happen in any system.