Hello, I am from Scandinavia. If throwing gasoline on the bonfire made a huge explosion, than putting out the fire will make you cold.. Developing mature opinions is all about understanding the importance of modern libertarianism, but an ethical one. The complete opposite of fascism and conservatism.
Socialism was almost libertarian during Marx'time at defending individuals against industrial leaders, but ended up as fascism. This because the "marxists"(quasi-marxist) forgot about the individual, and overestimated the government. A similar thing happened with conservatives allegedly adopting "liberalism" which is of course rubbish. Today's capitalists arent liberalists. They are big-corporate idiots or speculative stocktraders. The questions is why? The answer is partially our culture but much more our basic system.
As most others who have NOT studied/discovered the Venus project/Fresco ideas and zeitgeist movement, you focus on the idealism details and miss out the big picture..
Although you succeed in suspecting that "something is wrong".
The problem is however not a free market or the opportunity to thrive. Today individual freedom ,small companies and the ethics of the world seem to weaken quite dramatically and gradually faster in several ways. It happened in socialism, and later (now) it happens in capitalism. In Greece, USA, and many other countries. It will eventually happen in the whole world, with only possible consequence: A big war or massive riots. Greece only a beginning..
Whether a local area has most of socialism or capitalism or liberalism etc makes very little difference in the long run. This is more a question of whether you wanna have sex with the daughter or the mother or the neighbour (Though I'd say confucian-taoist liberalism is better for the culture, and I am waiting to see such a combination arise in a society. The closest we get is combining shaolin philosophy with direct-democracy of ancient Greece).
The main challenge for today's society is that everything STILL is governed top-down in corporations and public systems. The pyramid. An ancient heritage from roman-empire ages and later similar regimes.
It is simply not sustainable, because it eventually creates a situation where the growth needed is bigger than what is sensible to create, for the sake of nature/environment and in regards of what is actually possible without enslaving the people completely.
The pyramid model also makes it harder and harder to fund tech development and infrastructure well enough. Most people have no idea on how far science and technology have gotten today. The obstacle for applying this to the benefit of the public, is the pyramide society structure.
Try to eat a thousand beefs at once. You can't although you'd want to. That is the problem of the dictator, and the problem of the modern world government and industrialist corporations. It doesnt matter whether their intentions are good or selfish. They think they can control everything and govern it all for the good of themselves and everyone else.
This is why USSR went down. In the end there were no more values to create relative to the needs. Everyone had a job but everyone was poor... The country was broke. Funny enough,this also eventually happens with capitalism, that is: as long as the system is centralized (the better alternative is cooperatives with libertarian laws).
In order to save money in the short run and keep everything status quo, big companies and socialist/capitalist governments move all burdens over to citizens little by little and increase their own power little by little. It is not different from the priests burning witches in old Europe. They were preaching the "word of Jesus" but probably Jesus would have hated them. They had gotten into the role of keeping status quo whatever the cost.
For every local autonomous conditions to thrive, you have to forget socialism, because socialism requires a pyramid structure and likeness-fanatism that leads to decay of morale, ethics and quality.
Of course the same happens with capitalism in the long run. Local areas need to learn how to manage themselves, without anyone above them. If not, mankind will eventually stagnate and become primitive again.
Liberalism is necessary as a basic philosophy. I don't mean selfish versions like from Rand, but real liberalism as "democratic ideology". Where people have rights and duties, not only burdens.
It generates a smarter population than socialism ,that doesnt create enough ambition and development desire because it annihilates individual rights. In norwegian schools the quality today is very low for a western world country, because the school system leaders have always been socialists and christian conservatives. Individual talents and opportunities are held back and people are forced to be similar in every way, something that kills motivation and prevents the development of intelligence.
It also leads to a harsh social climate within classes in school because kids will behave like dogs pecking on everyone who is smart or different. That was also a huge problem in former USSR that they still suffer from today.
Capitalism
becomes fascism (as opposed to liberalism) when society-structures are too big and too centralized. Many people don't know that Marx was not a communist. And he was not a social-democrat. Marx was an anarchist.
However, he failed on advising the "temporary" role of the state government. He didnt know that eventually it will become a monster whose only role is to create its own survival while burdening the population.
The problem of increasing problems of all kinds (without saying that there are only problems..) is usually the
centralized monetary system and bureacracy. Whether this is governed by politicians or businessmen make little difference as the result is the same.
The problem with socialism AND capitalism in practice is therefore often the same- and we now see this very clearly in Europe because we now have seen both socialism and capitalism fail miserably - and seem to lead into the same problems as the old feudal-religious systems/regimes of the pre-democratic past and what today still rules in Iran, NK etc. : More and more burdens in time and money is pushed onto the public in capitalist societies with a centralized system. This eventually leads to a state where fascism takes over, because the leaders on the top will do anything to stay in power, having forgotten their idealism on making something better. Even Hitler believed that he was doing something "good" - he just had no clue on how and we know the result.
Even in Norway as a very rich country from oil industries, we experience that the powerful government and powerful corporations fail completely in their "effort" to make a good welfare system or create good conditions for small businesses. We see that crime increase rapidly in Oslo, drug problems increase, individuals have a larger debt and consumption than before, taxes are getting higher and higher, hospitals are miserable in quality and many people are waiting in long lines for health care (we have a large increase in health insurances) etc. The roads are decaying, the censorship in medias have increased and todays medias in the country are completely governed by the 2 big parties. If you critizise them heavily (but in a serious language) publically, you'll get banned and censored.
And it is almost unnecessary to mention the attempt in many countries to control the internet...
The pyramid-fanatics have an idealism that never works in the long run. Socialism and liberalism will work fine in controlled local conditions where every region has 100% autonomy. The closest candidate in USA to have this opinion seems to be Ron Paul. He isnt less socialist or less capitalist than the other ones, but he is less fascist. And that is very important to understand. Though he should have been younger and thereby smarter.
In this sense, Ron Paul partially seems to be much more radical-liberal than socialists or social-democrats who often end up resembling industrial capitalists.. (Although he has got some consertative weaknesses)
The problem is actually what rightwing libertarians in europe, anarchists and traditional marxists (not communists) all agree about: The french revolution failed. As did the american one.
We still have a pyramid ponzi scheme-like structure in the world politics and economy, and the globalization only makes it more extreme. We are heading right into more and more classic feudalism, the monarchy dictatorship. We will continue to see growth of polluting industries, weakened rights, higher taxes, required consumption etc. ALL only to keep status quo -keep the power and money at the hands of the few..
We have in Europe for a while also like the Soviet union and China (I will get back to them) believed that we have a "good" combination of capitalism and socialism; like Obama now believes he will implement in usa... All wrong.
Check out "resource-based economy" and "cooperative" society. A very fine idea.