To a socialist, capitalism is the root of all evil. Likewise capitalists believe socialists eat babies for lunch. But what each group is demonizing is merely the extreme version of the other. In reality socialism and capitalism are merely the opposite points along a continuum. This type of black and white thinking is an error in logic which polarizes the population into opposing groups. Psychologists call this type of black and white thinking "splitting". http://en.wikipedia.org/wiki/Splitting_(psychology). Splitting is a sign of immature thinking. We the People are still wetting our nappies and sucking our thumbs.
We need a balance in order to rid the world of the ills arising from extremes of either ideology. As a society we should be looking to find the "sweet spot" between productivity and happiness and also between competition and caring. We the people must get up from all fours and learn to walk.