I feel this is overly simplified, and often not applicable in "by the book" capitalist economies. Capitalism, essentially by definition, dictates that people ought to only get as many services as they can possibly get by on to keep them working. (Not enough to live on, but too much to just die.)
I mean I don't believe any of us would argue that capitalism is focussed on people, it's focussed on profit, and people are considered a renewable resource. If you are not able to produce profit, then capitalists do not want you, as you are a burden on the system, you are a cost without to ever be able to return any of that money that is spent on you, this is undesirable.
Socialists economies on the other hand recognize that there are circumstaces under which you will not be able to be a profitable human, and they choose to be ok with that by charging every profitable human a certain fee to account for the expenses incurred by humans who are not generating profit.
In either way, go ahead and compare the standard of living between the United Staates and Germany, or the U.S. and Sweden, or heck, even Italy which is as screwed up of an industrial nation as one can possibly get.
My point is that those who create the profits in capitalist economies, as a whole, do not reap as many rewards as those who generate the profits in socialist economies. My proof is everyday life in the United Staates: homeless, illiterate, fee based higher education, people without medical coverage, senior citizens buying cat food because that is the only thing they can afford. This type of things are extremely rare in social economies, which leads me to believe that in the long run social economies are better for the people who live in them.
[Edit: Oops, flaw in presentation of historic events removed.

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