I don't have any faith in the state and I think that the welfare state is a temporary, half-satisfying solution at the best of times, but we need to grow our stateless networks of support and infrastructure to the point where we can provide a viable alternative - and we are not there yet.
The only other 'viable' alternative to Social Democratic Capitalism at this time is Neo-Liberalism.
So let's mitigate the potential harm of Capitalism while growing our alterantives: it's called "dual power."