Socialism is alive and well in many countries, including the US. There has never been any economic system that was purely socialist, nor purely capitalist. All systems are a combination of the two. Some systems have more capitalist elements than socialist, and some have more socialist elements than capitalist, but they all have both.

People are confusing socialism and totalitarianism, which are two entirely different things. Socialism is an economic system, and totalitarianism is a political system. There can be (mostly) capitalist countries that are totalitarian in nature, and there can be (mostly) socialist countries that are very democratic in nature. The thing that has been discredited isn't socialism, it's totalitarianism.