The Church's Demise

Alan Hirsch, in his book The Forgotten Ways, attributes the decline of the church in the West to the following three forces at work in society:

1. The rise of capitalism and of the free market as the mediator of value
2. The rise of the nation-state as the mediator of protection and provision
3. The rise of science as the mediator of truth and understanding

What do you think about this explanation?
Hirsch goes on to say:
On could hardly now doubt the almost total hegemonic power fo the economy, the state, and science in our lives. And the upshot is that these are precisely the places where the vast majority of people find their direction and meaning. And as we engage the twenty-first century, the most dominant force of all three --the one that pervades our lives totally--is that of global economy and the market...It has often been noted that in the postmodern condition we can consume new identities like new clothes...In this cultural situation everything, even personal identiy adn religious meaning, becomes a comodity that we can now trade in, depending on the latest fads, and by consuming the latest products--The Forgotten Ways p. 109.
If this is true, how should Christians regard "Capitalism" and "Free Market Economies"? Is there such a thing as "Benevolent Capitalism"? Can we have a "benevolent capitalism" with the belief in total depravity? Can the church begin to influence people for a "benevolent capitalism" or will it always sucomb to the darker-side of free markets and consumerism?
Just a few questions to chew on.