Your points are well taken, here. I would only ask that you replace the overused and imprecise word "capitalism" with something else, like corporate oligarchy or market fundamentalism. That way, you would avoid falling into the false dichotomy of "capitalism" vs. "socialism."

Private enterprise--the act of organizing resources to turn a profit--is not intrinsically good or evil. Rather, there are socially adaptive and socially maladaptive ways of making a profit.

Private enterprise is socially adaptive when it provides goods and services we want and need, creates employment, stimulates innovation through competition, and attracts investment. It is socially maladaptive when it exploits workers, creates monopolies, exports jobs in a "race to the bottom" for the cheapest labor possible. pollutes land, air, and water, deceives the public by suppressing information about the harmful side effects of their products or their manufacturing process, buys out legislators with legalized bribery, and creates speculative bubbles in the financial sector that allow people to become super-rich by extorting the poor, without producing anything of value. So the role of government is not to displace private enterprise, but rather to regulate it in the public interest We need both a healthy public sector (e.g. roads, bridges, schools, the post office, social security, health care, etc.) and a socially adaptive private sector if we are to thrive. By the same token, government needs the power and determination to regulate, penalize, and even dissolve corporate malefactors.