The thing is, we could have capitalism that's extremely regulated.
Imagine antitrust actually enforced so there's 10 competing search engines all better than modern day Google. Or there's ten YouTube sized clones all competing for content creators and not one big winner dictating terms.
Or instead of one crappy windows 11, that's ten competing OSes that have to work together on ISO standardized hardware and drivers that are shared to every OS vendor.
A capitalist democracy could regulate that every single business be required run off renewable energy in ten years and put a huge chunk of tax incentives towards building out that capacity that's spread across tens of thousands of small green energy producers. It could legislate that fossil fuels will become illegal in 10 years with extreme incentives each year leading up to try to speed up the timeline.
Such a democracy could also allow real unions, and since the anti-trust enforcement keeps the companies small, the unions can be small and local as well, reducing administrative bloat.
Instead of three huge pharma companies, there could be thousands of small competitive ones all trying to produce the best medicines, and when they are developed a perpetual license could be bought by the FDA after it passes clinical trials. The FDA could then license that formula to thousands of small drug manufacturers who offer them generically to the American people at a competitive price.
There's such a huge gap between unrelated capitalism and regulated that even moving halfway between what we do now and full state control of all industry would have incredible improvements.
When companies are only a few hundred people at most with a strong union, you won't have CEOs earning 300x the average employee. You won't have companies sucking every worker dry trying to pump up their stock prices. It will chill the stock market significantly because those unions in small companies will demand a fair share of the profits. If the company doesn't play ball they'll quit and either start their own or join one of the dozens of competitors.
We really don't have competitive capitalism right now, everything is owned by a few huge corporations that use their size to squeeze every person in this country to pump higher stock prices.