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You're being incredibly euro-centric with your claims here.
How so?
Your notion of where the modern divide lies is 100% European and won’t hold true when you consider all nations.
Liberalism is european in origin, as Capitalism first truly took hold there. It isn't the "modern divide" but the notion of Liberalism as a progressive motion or regressive motion.
Capitalism was first instituted by the first Liberal nation- the USA. Europe was mostly mercantilist
No, the mode of production creates the ideology, not the opposite.
And Europe was mired in mercantilist systems. The government gave business permission to exist in many cases.
America was the first to institute capitalism, Europeans cane up with the philosophy but America put it into practice.
Mercantilism is not distinct from Capitalism, but a form of it.