Capitalism hasn’t failed. The people who run it have. While at a basic level, Capitalism comes down to “I have greed, and you have need. Let’s do a deal!”, we all know there is much more to it than that. Otherwise none of us would get worked up over Globalisation(tm)and workers rights and the like. There is obviously a social element to Capitalism, both from “our” point of view, and also “theirs”.
Given this very human element, there comes a time where dead wood needs to be cut out of the system – for it to run at maximum wealth-creating efficiency. We normally call these recessions. The weak fall, the strong and the innovative survive. When you postpone a recession with massive public borrowing, that’s all you are doing – postponing it. Artificially propping up the weak can only last for so long before they fall off, like balancing a ball on a very thin stick.
When you get a recession, every weak element in the system will be tested. If you’ve postponed it, they’ll be tested massively. And they’ll fail, epically.
So, I state again, the reason why everything is completely fucked now isn’t so much the system (as flawed and distasteful as it may be), but the people who have allowed 2 or 3 recessions to hit us at the same time. Any system you replace Capitalism with will still be run by pretty much the same people. Even if they have different faces, they’ll still have the same flawed ideas. And we’ll be fucked again.
Change the ideas, THEN the system, and you may be onto something.