Edit: Holy crap, I need to confess I misread your post and replied as if you were making a completely different point. That is my mistake, full stop, and after re-reading your reply I can only assume I likely confused you and others.

Any extreme is bad, that’s true. But there’s a lot of room in between current affairs and the situation you’re describing I should have read that more carefully. Many of the happiest, healthiest nations on Earth (prime example being Nordic nations) have a model featuring government intervention in the economy and strong social nets while still being capitalist.