Capitalism also means free enterprise which is incompatible with socialism.
Actually not. I think you're thinking of "free market economics" or possibly "free market capitalism". But capitalism by itself just means that private citizens are allowed to amass wealth and are given the opportunity to live off that wealth accumulation entirely.
It's pretty common to confuse capitalism with free market economics. Or even to think they're synonyms or that capitalism is required for a free market to work. It really doesn't.
What capitalism has going for it is that it provides an incentive to work hard and for those players in the market who have an edge to push a little harder. But at the same time capitalism provides a constant headache. There's no incentive for a rich person to do jack shit in a capitalist society. Capitalism does not reward hard work for those who are already rich. There's zero incentive there so it doesn't happen. Capitalist society tends to produce three tiers. The working class who are lazy, due to lack of opportunity. A hard-working middle-class who has the promise of wealth dangling in front of them. And a lazy capitalist class who make 99% of all the money and do extremely little all day. Once you belong to this select and elite group you're set for life and it's virtually impossible to fail.
What capitalist free market policies has going for it is that it's extremely robust. Once set up it has in-built mechanisms to be self-perpetuating. The problem with it is that it isn't particularly dynamic. The freer the economy is in a market the harder it is to climb.
Two examples is Sweden and USA. The American dream is alive and well in Sweden. In this country, anybody with some talent and a little hard-work, can scrape themselves off the ground and build themselves up. We have free schools on every level and plenty of state sponsored programmes for people to start companies. The system is set up for people to be able to make something of themselves regardless of background. A socialist system. We're constantly siphoning off money off the rich in order to give opportunities to the poor or poorish. USA on the other hand you're likely to stay in whatever class you were born into. Your parents wealth will most likely determine your wealth and self made men are extremely rare. It's actually the same in Sweden. But in Sweden social mobility is a hell of a lot easier.
Niklas Zenström, the Swedish entrepenour who founded Skype would never have made it if he was born in USA.
And it's not like Sweden is a paradise on earth. Even in Socialist Sweden it's still 3% of our population that earns 99% of all the money. Capitalism here is still almost as bad as USA. Just not quite as bad. That little difference goes a long way. But in Sweden voters are aware about the risks and dangers with capitalism and uses their voting influence to mitigate capitalisms problems.
That was a long rant... anyhoo... It just depends on what kind of society we want to have. I want to live in a country where everybody has opportunities to do whatever they want with their lives. And that requires a little socialism.