Art, a lot has to do with your definition of Capitalism. If it's just the acquisition of dividends from stock investments, then it has been somewhat counterproductive to American Democracy. Why should middle class and lower class workers be taxed more than the
investor who sits by his swimming pool and waits for the dividends to come in?

OTOH, capitalism and socialism seem to work hand-in-hand in Germany, Denmark,
Sweden and other civilized countries in the world. Government plays a role in subsidizing schools, infrastructure, public health and head-start programs. The capitalist can assist the government through the creation of libraries, educational institutions, safety nets for
those who are in the cracks of the health care debacle and other itineraries.

If capitalism goes and socialism takes its place, where are the safeguards from those
who can game the system like they did in USSR or in Nazi Germany?

I think a mixture works ala FDR.