Winners and Losers

Poverty itself is a relative measure of wealth. It has everything to do with the size of the gap between the top and the bottom and less to do with the actual standard of living itself to a certain extent. For instance, those in the United States considered below the poverty line today often have a higher standard of living than the average family on the frontier many years earlier. Free market capitalism requires that within the economy there will will always be a "winner" and a "loser." This is due to the fact that capitalism is fundamentally grounded in the idea of competition between individuals. If there is competition then those at the top will come out with more whereas those who are not as successful will come out with less-resulting in a wide gap of wealth. This then, essentially, leads to the very creation of poverty itself so as capitalism is in fact a huge factor in the creation of the problem, how could it be a viable solution for fixing it?