All democracies are both capitalist and socialist and must balance between the two: pure socialism is communism and pure capitalism is colonialism, and the only difference between the two is that the latter oppresses other countries while the former oppresses its own. Countries became communist if they're neither wealthy nor poor enough for either and become self-colonizers. There must be cooperation within a business and competition between businesses. The more cooperation a sector takes, the better it's nationalized, and the more competition, the better it's privatized. Socialism is best for large businesses like industry, capitalism is best for small businesses like agriculture.
The more work is done by machines, the more money is earned not through work but through ownership of what's not earned through work. Ownership is power, and equality of power is equality of ownership. To keep equality from ever increasing, all must have their share of their ownership as a basic income, just as all have their share of its power as a vote, and when all it automated, basic income could even become the new vote. The less employment is done for the needs to survive, the less all of us should need employment to survive: we should be employed only to survive, as we cannot give up our lives for anything better: creativity, the one thing that can't be automated, is only reduced by a need for payment * as it arises from freedom (FRB: Large Stakes and Big Mistakes).
A government can be plotted on one axis based on retention rate (capitalism) vs. tax rate (communism) and on another based on public state budget (democracy) vs. private state budget (dictatorship).