The problem with any form of government is that it is bound to have inevitable deficiencies regardless of the type. And the more power the government has, the worse it gets. Look at Canada's health care system for example: you could see a specialist for certain heart conditions here in he U.S. in about 1/4 of the time it would take you to even sit down for an initial appointment. Quality of health care aside, the sheer amount of bureaucracy will kill you before you can even get diagnosed.
Capitalism is far from perfect, but it is ultimately more flexible (and workable) than a government that regulates everything to the point of stagnation, which is the inevitable destination of nations that push further and further into one definition of socialism or another.
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