Capitalism does not "suppress individualism and creativity." I think what you are referring to is the economic ability of a person to contribute whatever they want to a collective economy whether or not it's worth it. Capitalism lets people be free individuals, so long as they can support themselves doing something economically valid so that they contribute enough to the economy in order to receive food, clothing, shelter, ect. If people in a capitalist system try to contribute something that is not wanted, no one will pay for it and they won't be able to support themselves that way; it is a form of suppression.
However, in a socialist system, people have to be forced to contribute to the collective instead of focusing on themselves. This has to be dictated by a government agency, and it is one small step from telling you what to do for the group to telling you how to live your life and how to think, therefore suppressing all thoughts and individualism that do not support the authoritarian system.
If you think that human nature allows people to hold this kind of power in government without leading to abuse or corruption, I suggest you find a reason why the Soviet Union fell or why China, Cuba, and various other Communist (read, "applied socialism") countries.
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"Seek truth from facts"
--Deng Xiaoping
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