This concept holds true. As one advances the causes of Socialism it has a negative effect on capitalism. As one advances the causes of capitalism, it has a negative effect on society.
There is a point of compromise where the best of both worlds can work.
The New Deal was designed to create economies beneficial for its citizens. They had just been slammed by the Great Depression so methods were implemented to insure that wouldn’t happen again.
It of course, was not good for getting high rates of returns on investments. Their high rates did not return to pre-Depression levels until the Republicans removed constraints during the Bush years.
There is no denying the truth of this graph. Today and the Roaring Twenties illustrate the far left of it. Communist Russia and Cuba illustrate the far right. America has vacillated mostly somewhere in the middle.
The issue of where we need to be on that chart, needs to be determined by elections. If one is happy with ones economic lot in life, then perhaps a Republican would be good in office. If one is not, then perhaps it is time to put in a more Socialist leaning Democrat so more Americans benefit from the cutting of the pie.
Right now, based on how established candidates are fighting for any grasp of attention, it would appear that most of America is unhappy with their lot.
Considering that capitalists now hoard more of a percentage of the GNP than they did just before the stock market collapse in 1929, it would be safe to assume we need to pursue more Socialist leaning policies to benefit more Americans.
Of course, the capitalists won’t like that. But we should expect that and continue forward. They didn’t seem to mind when many of us didn’t like what they did, at our expense. But balance must be regained.
This basically explains the success of Bernie Sander’s campaign. He is the only one pursuing the right direction needed to stabilize the American economy and bring it back into balance, which is to put limits on capitalism and grow society’s portion of the national wealth.