Speaking of socialism will never run out, because we always find it anywhere, Socialism rejects society based on caste. But the socialists believe that it is possible to make the transition from capitalism to socialism without a fundamental change in the nature of the state. They hold this view because they do not regard the capitalist state as the basic institution for the dictatorship of the capitalist class but rather as a good piece of equipment that can be used in any class interest to gain command over it.
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Socialism and Capitalism just can't go hand in hand by definition. There has to be a form of government between the two to see some sort of hybrid. Democracy, or perhaps a functional Republic could possibly work that marriage.