Germany has a super strong middle class. A form of socialism that works.
America doesn't use capitalism any longer and hasn't for quite some time.
Instead, that which you've alluded to might better be labeled corporatocracy, which, in social theories that focus on conflicts and opposing interests within society, denotes a system of government that serves the interest of, and may be run by, corporations and involves ties between government and business. Where corporations, conglomerates, and/or government entities with private components, control the direction and governance of a country, including carrying out economic planning notwithstanding the 'free market' label..
....I suppose, then, that we ought to include another thought nugget with that one. The system we now operate under here in America is much more Marxist than free market/capitalistic and the direction of the slide is steadily continuing that way.
If a label needs to be put on what is being described above it is authoritarian dictatorship. The question is: "Who is the dictator?" There can be earnest, well-reasoned disagreement about this point, between corporations, bureaucrats, some malignant oligarchy of bankers/legislators, who knows. What is clear is that the answer to the problem of eroding rights is not expansion of taxation, inflation, bailouts, and government.
Freedom is scary and painful, but oh so liberating. We have to be willing to put up with stuff that we strongly disapprove of in order for others to respect our own rights. On the left that means we have to live with some entrepreneur making obscene profits, as long as he/she does so while respecting the liberties of others. On the right it means we have to live with private contracts like Gay Marriage or personal decisions like smoking pot.
From my perspective marxism or fascism in practical terms are the same. The majority of the people are enslaved. They have to obey and adore their government without questioning while a group of corrupt psycopathic a-holes get in control of the government and the industry and feel the sick need to control every move of the ordinary citizen. Call it what you will. Sadly, we are looking more and more like that every day.