It has nothing to do with the system. It has to do with the politicians and how much they steal from the tax payers. People are blinded when it comes to blame a political system. I believe every system can work. Even a dictatorship. But it all depends on the person that is in charge. If he is an asshole, people will suffer. If he is a good person that cares for his people, their people will thrive.
You argument isn't correct actually. Spanish social security was much better than for example in Belgium or the Netherlands. In Spain medicine was for free, even for tourists. Despite that, Spain had the lowest debt in whole of Europe. But it is Lehman Brothers with their toxic derivatives that caused all chaos in the world. And Spain had an economic model that could only fail. Their economy was solely based on turism and construccion and when selling property failed, so did their economy. That's the real problem behind Spain's trouble; a faltered economy, one that was not diversified enough. Just like Maduro in Venezuela. He put all his bets on oil so when the US decided to blead themselves to a semi coma to destroy their enemies (Russia, Venezuela), Venezuela was doomed to fall. Venezuela didn't fall because of socialism. It fell because Maduro didn't diversify his economy.
But as usual majority of people don't understand this and choose for the easy and blind option ... blame socialism. In the meanwhile the biggest capitalism country in the world is at the brink of total collapse but nobody seems to blame capitalism. Suddenly they call it socialism. But that's how far people are willing to go to not tell to themselves "I have been wrong all this time.".