I think your points illuminate that the economic system is not the root source of division—racism pervades in both capitalist and communist countries. So what is the real culprit here? I would say that the core threat that all corrupt countries have in common—no matter their economic labels—is oligarchic authoritarianism.

Oligarchic authoritarianism is the true villain in all this. The socialist/communist examples you gave are all authoritarian. Norway, Sweden, New Zealand, and others are also labeled socialist but have much stronger systems of democracy. Wherever there is strong democracy you see natural movements to balance a capitalist free market with regulations that support social welfare and human rights.

The U.S. is losing any semblance of democracy on a federal level. When you’ve lost that, it doesn’t matter if your country identifies as capitalist or communist. The power structures are still essentially the same. Russia is an example of anti-democratic capitalism run amok that it seems we are not too far off from.