Let us have the candor to acknowledge that what we call "the economy" or "the free market" is less and less distinguishable from warfare.
We can fight the global economy with a strong local economy.
If you establish, or reestablish, local economies on the right scale and with the right standard, then politics would come right as a matter of course. I don't know what you'd call the result - probably not capitalism or socialism.
There are lots of bad things that can happen to a food economy that's both extensive and centralized. There's no substitute for petroleum. To have a growth economy based on a declining fuel supply is bound to be stressful.