"Whatever you may think of socialism, it is not a cultural phenomenon, it was the inevitable political reaction to the abuses and rapacity of 18th century mercantilism and 19th century industrial capital."

No doubt it was a reaction, but I don't think it's a reaction to "abuses and rapacity". I think part of it was a reaction to changing social order. Or a growing middle class, that was destabilizing to the existing order. And that these kinds of changes are common aspect that leads to revolution. And this is also the basis for the "worry" or "hope" in regards to China.

Now, if you wish to keep your "abuses and rapacity" there might to some truth to idea that there become enough of social dialog, that this dirty laundry was capable of being aired- and the ever popular appeal of having numerous demons ready to devour.
And also with changing social order, one gets dislocations [both people being force off the land and people choosing to leave their land for better prospects elsewhere] and this causes numerous kinds of hardships and normally a breakdown of social norms. I believe there is ancient Chinese saying regarding this.

It is also my general understanding that socialism was based on an attempt to understand America it that time.
This kind of thing occurred in America at time that Japan was making and selling better cars than American cars. [What was the Japanese secret of success?? And generally speaking the most common result of this kind of thing is to draw the wrong conclusions- because obviously you in fact know very little about some distant land. This also occurring [or at least had some influence] on the US forming NASA- what were the Soviets doing that made them successful? {Hint: they were actually copying what America industry does successfully}].