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I live in Denmark, and I can assure you, what we have is still capitalism.
It's just regulated capitalism, to prevent harm, and ensure fair competition.
In principle it's the same as USA, but with a political desire to maintain a different balance between capitalists and workers than USA.
But I agree, that among the systems we know of and have tried, the Scandinavian model seems to be among the better systems.
But maybe it all boils down to a stronger democracy, with 12 parties represented in parliament, and the government consisting of 4 cooperating parties.
I think that helps create a better balance, and the American 2 party system, both destroys a good balance, and it also rob voters of the ability to vote for something they actually feel represent their wishes.
On a funny side-note, every research done into the matter that I know of, shows that Scandinavian countries have greater freedom than USA! Especially on the freedom of speech, we have way bigger freedom than Americans.
Capitalism is like alcohol. You don't take it pure because bad things happen, possibly lethal things. It needs to be a limited amount as part of something bigger.
I agree, that's what we usually call regulated, only about half of USA think regulation is a poison, all other countries understand regulation much better.