It certainly works better than communism, marxism, or socialism ever has. Why does freedom bother you so much? Are you just scared or are you one of those little people (like Saddam Hussein) who feels the need to have power over other people?
Name a country that has had anarchy (either the true version or the Sex Pistols version). I can. One. Somalia. Yeah, let's all live like that.
Most Northern European countries have some form of socialism and capitalism as do we down here. Works fine. As for freedom, I'd have my version down here over yours any day of the week. Oh, sure, I can be 'free' in America if I have a couple of million in the bank. I can be 'free' in a two-party state. I can be free in a country where the size of your wallet gets you elected mayor or governor or to the state supreme court, not your ability to do the job. As for power over other people, are you for or against abortion? Are you okay for gays to marry?