I think most people conflate the 2 things the current problems are not just because of capitalism but rather the capture of the government by capitalism.
I agree with you. I don't believe pure capitalism or pure socialism works; we need something in between. China is somewhat like that, but because of the type of government it has, it is viewed with a jaundiced eye. Countries exist for their citizens, so things like healthcare, housing, and most infrastructure should be provided or subsidized by the government.