Capitalism With A Socialist Face

This is a post my friend made to a blog which I found very interesting, let me first break down the argument: the claim was that capitalism is better then socialism on the basis that socialism unfairly rewards individuals that are not exceptional or working as hard as others. This is the response:

talking about capitalism vs socialism i hate how students always dismiss it immediately, you talk about it in too abstract of terms. Have you been to Scandinavian countries? where in Denmark there exists the lowest gap between the rich and the poor, where in Norway the biggest problem is the state having too much money (literally), and the happiness index being the highest in the world.so I have to ask, this is bad? to me this socialism doesn't seem so crazy, compared to where in the US the gap between the rich and the poor is larger than that in India! your problem is that you talk about rewards for being exceptional but you exaggerated this claim so greatly, there's is a difference between the state providing a basic living standard for all of its citizens and giving them a free ferrari. Lets take Denmark - for all intensive purposes its still a capitalist state with a consumer based economy the only difference is its state has an advanced welfare program - every one still gets rewarded for what they do and what skills they poses. for instance we all go to school in canada so we can find a good job that can guarantee us a good income - i dont care who are if your the exception to the rule but most people in north america go to uni to get a degree - this is not so in denmark. because of taxes and the low gap between the rich and the poor - the pressure for people to land a high paying job JUST for the money is much lower and this gives them a sort of freedom to pursue studies which they are ACTUALLY passionate about - sorry but i have never met anyone who passionately wanted to be an accountant since they were a child. a journalist which is a low paying and dying job in NA is a high paying and incredibly respectable job in Denmark. So, so far we established that ppl do get reward for exceptional skills, so again i have to ask what is so bad about this? if you want to be so critical you can say that this is not socialism but capitalism with a socialist face - which probably is as close as we will get to it. and on the environmental argument - i have to disagree too, it might not be the sole factor for success but its a major one, just look at school in toronto in "good" areas and "bad" ones and compare their post secondary rates - because if you talk about Foucault and defining in juxtapositions you simply cant ignore environment - otherwise you should have mentioned them. Lastly i do think capitalism is the best sys we had of the ones we tried - but this capitalism with a socialist face is by far better.

Tell me what you guys think about this it would be a great debate, I am thinking of later updating this thread with questions from Qoura.