Im a little confused. Is America actually capitalist, or is it crony capitalist? Would TRUE capitalism have any problems? On the surface, it makes sense: make good product, get money. Someone makes better product, you need to improve yours or you go out of business. The issue is when we get monopolies and regulations that then restrict actual good products from being able to exist. But thats not a thing in true capitalism (so they say)
Is the best thing a mix of socialism and capitalism? I dont think we could abolish government, as someone has to lead. Certainly government needs to have actual checks and balances in place.
Because there is an increased competition for resources, resource hoarding increases as well. Managed release of those resources along with who deserves access to those resources is a political endeavor. Not at the level of the state, but when you end up having a laissiz-faire system, there is no state to prevent hoarding of necessities. And now a situation can emerge where one company hoards a necessary resource and manages its release to some and not others. They will have become the state.