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No, that's the idea of free-markets. You can have free-markets without capitalism, and you can have capitalism without free-markets (such as State Capitalism). Capitalism is about using wealth (capital) to acquire the means-of-production (capital assets), and hiring and paying workers less than the value of their labor to make profit. It is inherently anti-democratic because the workers have little-to-no say on what labor they do within the company, how their labor should be used, who should manage the various parts of the company, etc.
The West has been very "successful" before capitalism. I'm more in favor of the hypotheses from Guns, Germs, and Steel (for the most part, geography, climate, and natural resources has determined the fate of the nations). There are many very poor capitalist nations after all. Most the wealth of those nations seems to be funneled into the hands of the owning class in rich nations.
Yes, it does. When you make money from the labor of others, you are in the owning class. I am also, personally, in the owning class. I suppose there is some gray area with 401ks and stock options, but those amounts of ownership are often very low compared to outside investors, founders, executives, so they have virtually no voting power.
Don't get me wrong. I think Social Democracy, which northern European nations are close to, is preferable to the extremely weak regulatory and welfare state the U.S. has; but Democratic Socialism would further reduce exploitation, IMO.
I'm also no fan of the USSR or China, and do not even consider them to be leftist governments (the State owns much of the means of production, not the workers, which is antithetical to leftism). I consider them to be authoritarian State Capitalist nations.