Both are wasteful!

I don't believe that capitalism is compatible with the long-term existence of life on earth. Profit is basically taking back more than you put in; in the long run we'll run out of natural resources to exploit and lay waste to the basic design of nature that allowed life to appear.

I think you are right, AS, in the sense that the word "capitalism" is always used.

On the other hand, if the focus is producing value for your community, then you may still get paid some token for your efforts, however the focus is producing value, not abstract profit. And "producing value" may simply mean, being a good friend and advisor or helper to those around you. That is, in a perfect world, what a psychotherapist or religious leader does.