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.
What you’re describing isn’t capitalism per se, but a free market. They tend to be correlated, but you can have either one without the other. Capitalism strictly speaking is about private ownership of production—when private investors control industry and reap the remaining profits after wages and taxes.
Crony capitalism is when investors influence the state to reduce wages and taxes, and to manipulate the market at the expense of rival investors. It tends to be the outcome in any state where spending money to influence policy generates a positive return (i.e., most of them).