Capitalism is Capitalism because there isn't a divide between government and business (quite the opposite, government and business are intertwined in that system), so your views are certainly not Capitalist.
Providing common services that are considered "modern necessities" to people on the government dollar is referred to as "social welfare", and is the cornerstone of the socially-minded nation-state. Sweden is a good example of this in practice, actually; though it is technically still a monarchy (albeit one akin to the British one, ie. the king is a figurehead), the governmental body itself operates under a constitutional parliamentary democratic system.
You've more or less described the Swedish political system to a T, on the most basic level. Though I should add that, as a consequence, taxes in Sweden tend to be pretty high to help pay for the social welfare programs.
Sky Render - Sanity is for the weak.
