You say they aren't stupid. I can only conclude that they must be ignorant. Anyone who wants the information can take a quick look and determine what this is all about.
Sounds to me like they are limiting their sources of information to disinformation sources.
Sure, Democrat messaging leaves a lot to be desire. So does the level of critical thinking in this country in general.
There actually is a pretty large distinction to be made between the "small government, less regulation" version of capitalism (which is all about the less regulation at the top level imo) and the case for government as a counterbalance to unfettered capitalism, monopoly, lowered wages, fewer safety net services, etc.
Is that about capitalism, or about the size of government? Yes, I think. Both.