As far as I can tell, all state regulation attempted under a capitalist world system has fit one of three broad models (or a blend):
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Capitulation (neoliberalism)
Local mitigation (Scandinavian social democracy, 30s to 50s US)
State-owned capital (Fascism, Soviet Union)
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State control is the cornerstone. Neoliberalism attempts to reduce *individual* state control, but it's predicated on states practicing it.
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States promulgate capitalism, no matter their local dispositions. Without states, no capitalism (as we know it)
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The mitigation argument is interesting, but incomplete. There is no global deterrent to capitalism in a system running under it. None.
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A state can run LessEvilCapitalism.exe under capitalism, but it's a virtual machine on a capitalist OS, so to speak.
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Scandinavia runs on the same externalities as anything else. Child labor fuels most of our clothing brands, for example.
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You take your social democrat utopia, drag it up by the roots, and what emerges is Capitalist Cthulhu.
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Thus, I don't respect any solution to capitalism that proposes "let's make our state a bit nicer to live in". Externalities *will* be used.
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A real solution would be global, and likely involve the dissolution of states. No intervention short of that will have any real effect.
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Shuffling some numbers on a balance board is not an accomplishment under any system but capitalism.
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All state models are about shifting the minuses to elsewhere and keeping only the pluses, but the minuses always, always stay in the system.
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Absolutely agree with this thread. And this especially. IMO, subsidiarity will emerge: global/regional/state/local.
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States, the concept of state, won't disappear. Too much cultural capital. It will be relegated, repurposed, more intermediary than authority