If you look in the dictionary, capitalism is "a way of organizing an economy so that the things that are used to make and transport products (such as land, oil, factories, ships, etc.) are owned by individual people and companies rather than by the government". That's not something that is as universal or simple as your definition.
And even if we accept your definition.... like I said, the only way your statement works is if you're talking about how things were before agriculture and governments. Since then, most prosperous societies have not been that way.
Let's take many medieval societies, which relied on feudalism rather than capitalism. In those days, resources such as farmland, forests, mines, etc were all owned by either the nobility (government) or the Catholic church. Most of the population were serfs, who weren't much more than slaves. They were required to spend most of their time working the land owned by their lord, and give the harvested crops (or quarried stone, logged wood, etc) to him. In exchange, they were allowed to live in a cottage on their lord's land and allowed to work a small plot to feed their family. Yes, if they grew some extra food or whatever they could sell it, but they were not free to devote their time to the work they wanted.
Or let's take the the Incas, South America's most prosperous pre-colonial society. They had a completely centralized economy with essentially no private sector whatsoever.
And even other societies, that had more freedom for private individuals to own land and pursue their own businesses, still did not have a great deal of personal freedom for most members of society. If your prosperity is based on slavery or serfdom or exploiting colonies, than it's not based on personal freedom. I know it goes against your libertarian narrative, but the United States in 2013 is one of the freest societies since the development of agriculture.