That's not really an accurate overview of what constitutes Capitalism and Socialism. Capitalism is not "markets" and Socialism isn't government services, either. They are each determined by which aspect of the economy is principle, ie in control of the state, large firms, and key industries. Private Ownership as principle is Capitalism, Public Ownership as principle is Socialism. Both systems have a private and a public sector, but the trajectory of the system is very different.

It sounds like you're talking about the Nordic countries, ie deteriorating Imperialist states that are seeing crumbling worker protections and rely on super-exploitation of the Global South to subsidize cost of living and safety nets.