Is capitalism so great anymore?

A lot of people are saying Obama is trying to turn the u.s. into a socialistic dictatorship(and although some of his ideas may not be the greatest). Is socialism so bad comparatively? Things have changed a lot since we've started. Our wages have not kept up with inflation. The average joe use to be able to have a regular everyday job, support his family, own a house, own two cars, and live comfortably. Now CEOs earn in 3 hours what a minimum wage worker makes in a year. Most can't afford a house, it often takes two wages just to survive at all. Why not spread some of that dough around? We all want our freedom, but are we really free? Who doesn't say when voting for a president, "hmmm which are the lesser of two evils"? The majority of this country has no clue who are legislators are, how bills are being ped, what are corrupt politicians are really doing. If were going to allows the majority to struggle so much more then a few for generations to come anyway, why not adopt a socialist government where we can all be equal? what are your thoughts?