I remember back in the 90s Tony Blair gave a speech to the Socialist Internationale where he proudly stated that he was the head of the oldest socialist political party (Britain’s Labor) and the old socialist model was dead. He was part of a new wave of socialist who realize they need a thriving capitalist economy to tax in order to provide the social programs they all want.
Problem with that approach is that it’s not an equilibrium. Eventually the government programs will grow bigger and bigger and choke off the private industries.