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Surely you don't need Socialism to achieve this result, though - all you need is regulated Capitalism. That said, I'd like to point out that most all systems are a varying mix of the two. There are many Socialist aspects of the American economy (i.e. Police, Fire, National Parks, various social services, roadways, and many many more). Many European governments, although Socialist-leaning, have a great many Capitalist features - and by-the-by, innovation does not seem particularly stifled there, seems to me.