Capitalism is either an all or nothing idea. Its either a free market or it isnt. Free is an exreme term like always or never. Not like sometimes or usually. If a market is regulated at all, it isnt free. If there was a plantation owner who had a slave and told him "You can do as you like, and go as you like, but you are required to be in your house from 10pm to 8am every day", would that slave be free? No. He is mostly free, but he isnt free.
You are saying that government should regulate, redistribute, etc. When a coutry sets its economy around capitalism, but then starts fucking with it, you get America. Its shown that the more free (economically, politically, socially) a culture/economy is, the more prosperous it is. Socialism can work. The government just stimulates production. Its a zero-sum game. There is nothing to be gained. It can work in that aspect. But if there is a free market, each person does what is best for themself, and because of that, they make themselves rich. Look at Hong Kong. In the last 60 years it went from a small city to one of the most prosperous and economically acitive cities in the world. Why? Because while they are not a true free market, they are the closest thing this planet has right now, and for the past couple decades.
Look at this chart of economic freedom. Maybe its just me, but I see a coorelation between the quality of living/per capita GDP and rating given.