My comment was trying to address where my impression of how your definition of capitalism and what I consider to be the commonly considered definition of capitalism differs.
If you want to try to restate/reword you definition we can discuss how it differs from my readings and sources or how my initial impression was incorrect if that happens to be the case. Then the consequences can be discussed if there is interest.
Is there anywhere that this is broken down by program, it is not obvious from looking at the wikipedia simple pie graph that this is the case.
http://en.wikipedia.org/wiki/File:U.S._Federal_Spending_-_FY...
>Capitalism requires an unregulated free market based economy.
It is not clear what you mean here. Adam Smith seems to have been a proponent for the government paying for some public goods and regulation
> It was the role of the government to provide goods "of such a nature that the profit could never repay the expense to any individual"
> provide public goods such as infrastructure, provide national defense and regulate banking.
ref: http://en.wikipedia.org/wiki/Adam_Smith
Which agrees with what I have read and been told elsewhere through the years.