Socialism definitely can work, just look at China or Cuba.

Something that works is something that can't be "sabotaged" by a better system.

Capitalism works, but 100% capitalism doesn't. Socialism works, but not 100% socialism. If you can imagine less than 100% anarchism, then that works too -- basically people having a certain amount of autonomy, but not 100% autonomy.

Balance is key. People can't be 100% under the thumb of the government or life isn't worth living. But, people also can't be 100% free to do anything they want without considering other people because that leads to chaos and death. You can't have absolutely everything being privately owned for someone's profit, because that's just awful, but you also can't have no private ownership of the means of production either. A successful system is a mix.

Capitalism isn't the reason why everything is shit. That's the kind of argument a 6 year old would make. Everything was shit long before Capitalism came around. When feudalism / manorialism was the dominant economic system, people weren't allowed to leave the land where they were born because legally they were tied to the land and owed their labour to their landlord until they died. No capitalism there, but things were awful shitty.

The problem is extreme power inequality and wealth inequality. The theorists who promoted capitalism liked it because they thought that it would lead to less wealth and power inequality than feudalism. They thought that as long as the government enforced laws to ensure there was fair competition, there wouldn't be a ruling class of capital owners who would hold all the power. Anybody could start their own business and compete against existing businesses. If they had a better idea, or a better product, or a more efficient process, they'd be rewarded with more sales, and that would displace the existing business. But, of course, the wealthy and powerful managed to corrupt the system so that those laws were not being enforced and the wealthy and powerful were able to eliminate competition and effectively become feudal lords again.