But you see, this isn't really a capitalism versus socialism issue. It's less of an issue of economic system than it is a social issue that has economic implications (like the nation's predominant religion, population growth, and whether or not the populace is strung out on heroine). The best way to evaluate an economic system would be to consider an isolated country and only consider its economics without bringing in social issues such as religion and runaway population growth.
What you described is an economic issue, but not one of which economic system to have. After all, a great many factors can influence the health of the economy that have nothing to do with the issue of economic system. My point in these two posts is that we need to be careful to try to distinguish between various factors. What if a populace is completely irrational and self-destructive? Even if they had the most ideal economic system it wouldn't help them.
It's also quite possible to have a less than ideal economic system yet still have relative economic prosperity as a result of a culture's rationality. Consider a nation with a predominantly socialist mixed economy that has little crime, little religious mysticism, little overpopulation or that at least has it under control, and for the most part, rationality. European countries come to mind. In contrast, the United States has a predominantly capitalist mixed economy coupled with rampant irrationality throughout the culture; what I like to refer to as America's "Idiot Culture".