Or, it’s socialism, but not always on the leash. 
I tend to consider myself something of a social democrat, and i think that the Scandinavian countries do a pretty good job. Interestingly enough, they actually allow the market to make decisions far more frequently than many people realize. For example, Sweden’s school system is run on a voucher system, something that many free market types have been pushing in America, and that many American liberals have strongly opposed. The money for education still comes from taxes, but the voucher system allows choice and offers some market solutions while still socializing the costs of something considered a public good.
I don’t know many people, at least among social democrats, who dogmatically insist that the government is perfect at running the economy, or that it is always an ideal solution. And i think that, if we can demonstrate that justice and equity for all can be better served by the free market in particular instances, then by all means let the free market rule. But i don’t share with some free market absolutists the notion that government can’t be improved, or that economic efficiency always leads to the best outcomes.
We, as a society, need to think about normative issues such as how we value things like efficiency, equity, social justice, minimum standards of living, etc., and then look for positive economic solutions that will give us the sort of society we want. Are we, for example, willing to have slightly lower levels of efficiency and growth if that means slightly greater levels of equality and a certain minimum standard? And which is more important to think about: the minimum level of acceptable existence, or the question of the gap between rich and poor? And what is the relationship between these two things anyway? Are there some things too fundamental to be left to the market? What might they be?
One problem with market solutions in capitalist countries is that very few people, with the exception of some libertarians, actually advocate them with any real consistency. Businesses want reduced taxes and minimal regulation, arguing in such instances for a free market, but then often lobby for government subsidies, bailouts, and protection from competition. Farmers want to be able to sell their produce for as much as it will fetch when times are good, yet want government to buy or subsidize their crops when the market is bad, and want tariffs on foreign meat. Drivers want freeways, but don’t want to pay tolls to private contractors. Everyone has seen such inconsistencies in action, and maybe even can recognize some similar ones in their own minds.