I do understand, but I don't think you understand me.
Example:
Bob's Shoe Market pays seven dollars per hour for a cashier.
Ted's Sock-Porium pays twelve.
Bob is less likely to get as-skilled workers, and more first-time jobs. Ted's Sock-Porium will get cashiers with better mathmatics and comprehension, and "people" skills. It's the free market, and there's more than enough jobs out there.
My example was:
A worker skilled in selling shoes wants work.
Bob's Shoe Market pays seven dollars per hour for a cashier.
Ted's Sock-Porium doesn't exist.
If the worker's only skill is shoe-selling, he has to work for Bob, who doesn't treat casheirs very well.
I was talking about monopolies. In your example:
Bob will do worse, and raise the pay of workers to above that of Ted. Now people will want to work for him.
Ted does worse, and raises wages for workers in his company, etc.
This is the sort of Capitalism I'm okay with!
Now in a Communist society:
Lenny's Burger Joint pays six dollars per hour.
The Mayo Clinic pays six dollars per hour.
Who'd want to be a doctor under this society? Not me. You have to do all this extra work for absolutely no reason, because you will not be advanced. As CornMaster said, though, it is not that all people will work hard to advance the nation.
Teachers are paid REALLY badly. Why do people want to work as them?
I said that we aren't mature enough mentally to want to do hard work for the same pay as an easy job, even if we (as in everyone) will benifit from it.
That's why I don't think Communism can work now or in the near-future. Someday it will, but not yet.
Small-business Capitalism is the fairest system we've got. We should strive to keep the system like that.