Because if you dont have religious or alternative institutions to challenge the state. Then it essentially leads to the state getting full governship. And you rely more on state basis principles. Or am i wrong?
This is a fascinating idea, especially given the long and almost universal historical phenomenon of churches supporting authoritarian governments in exchange for reciprocal government support. The "divine right of kings" was preached in Europe, and the monarchies in turn supported the Church with their purse and patronage.
The solution attempted by democracies around the world is to create a government that can compete with and impose checks on itself by pitting ambitious individuals, parties, and bureaucratic institutions against each other. As long as everyone at least buys into the rules and framework of the government, then they can duke it out with their ideas or charisma all they like, and prosperity can still endure.
Socialism is about the common good for as many people as possible, where we create a floor for poverty and lack of opportunity that we won't allow people to fall beneath. Then again, it depends how you define "socialism." There is a profound difference between Sweden today and Russia under Stalin. To be honestly, Sweden seems to operate under a socialist capitalism based on secular humanism that prioritizes human flourishing, whereas Stalin operated under a communist socialism based on a religious model of absolute unquestionable authority of the state, focusing on his personal power.
Basically, I think your characterization is way too simplistic and probably ignores too much relevant history.