And most of that elimination of extreme poverty? In China. Now, I suppose you can consider Dengism capitalism, if you ignore the fact that it's markets and capital under controlled conditions being used to build up industrial capacity for the transition to communism, but hey. Whatever definitions let you sleep at night.
Overall, since the 1990s total global inequality (inequality across all individuals in the world) declined ...
In 1990, 36% of the world's population lived in extreme poverty. By 2019, this number had fallen to 9.2%.
It's not a fallacy ... it's reality