The point being that if company A cuts their price to compete, and company B has an artificially inflated price
Now we have company B with no sales, and are forced to match or beat their competitor
Repeat until the price is fair. This breaks if both companies are co-ordinating with each other and forcing all other competition in line. But that's a crime and would be regulated
You're probably describing capitalism with social welfare/safety nets. Whereas often socialism is considered to be specifically not capitalism and may not allow for the idea of working to get more resources
Fundamentally you're probably happy with capitalism in terms of economy but want further govt regulation/welfare. Which I think is probably the best system we have