capitalism is not condemned in toto
It depends upon what you mean by “capitalism” and “socialism”, as Pope Paul VI strove to clarify. As Strand states, “’
Socialism’ . . . possesses a variety of senses, and only some of those senses fall under the condemnations of ‘socialism’ articulated in papal encyclicals”.
Something called “capitalism”, without any qualifications, has been condemned in a number of encyclicals; as with something called “socialism” and something called “nationalism”.
But in other magisterial texts, clarification has been added to qualify the range of meaning attributed under these “umbrella” terms.
Moderate Marxian socialism would still be “unacceptable” to Catholic doctrine, just like moderate laissez-faire would as well, if that’s the definition of “socialism” one is using, because certain core principles are irreconcilable.
But if one’s definition of socialism is “social democracy” or a “social market economy”, then this is actually
commended in papal encyclicals.
Likewise, “municipal socialism” a la Murray Bookchin and Servant of God Dorothy Day-style anarchist socialism, does not fall foul of church doctrine (even if I’m not personally sure they’d be all that sustainable in practice).
Likewise, if one’s definition of “capitalism” is a hybrid market economy with safety nets and regulation, technically that’s “not” capitalism as an ideological system anymore than social democracy is “socialism”, but for some reason secular parlance has come, increasingly, to using it in this manner.
In and of themselves, without hybridization and significant reforms, both “capitalism” and “socialism” have been condemned as materialist philosophies that are irreconcilable with Christian doctrine.
Whether your “form” of ideology falls under the proscriptions, is a matter of looking beyond the particular “label” you are giving it (which is lazy) and entails some serious comparative exercise in evaluating your beliefs against the social doctrine.