They happen to be capitalist and they do produce a lot. But they don't produce a lot because they are capitalist. Those things have no clear relationship.
Soviet Russia had industry. Soviet Russia had research and science. Soviet Russia made vaccines and was very prolific about vaccinating their population. Soviet Russia wasn't capitalist, or even communist for that matter. So how were they able to do that without capitalism? Everything that applies to Soviet Russia applies to China the same btw.
So, clearly it has nothing to do with capitalism. And funny you mentioned the new deal. The last time the United States bucked capitalism for socialist policy. Republicans/fascists/capitalists were literally plotting to kill/overthrow FDR over his new deal policy. We literally didn't get there because of capitalism. We got there in spite of capitalism.
Suffering and inequality are inherent to capitalism. That doesn't mean capitalism wasn't better than mercantilism or feudalism. It was. But that doesn't mean it's perfect, or the best system humanity has created does it?
Also, post world war II there was no communist overthrow anywhere. Russia, China and Korea aren't communist and never have been. They're Leninist. Most communist despise Leninist almost as much as capitalists. Russia was as communist as the Nazis were socialist. Which is not in any meaningful sense.