So I am going to do a brain dump on my views of socialism and capitalism. Please correct me if any of it sounds crazy and/or is wrong.
The problem I see with Socialism isn't the socialism part, it's that
someone has to decide who gets what. In a centralized system, that basically means an oligarchy (Or dictator) controls all the resources of the state. This has upsides and downsides. The biggest downside is that such centralized power is a Bad Idea, because it would allow someone(s) to take over and use the country as their own personal piggy bank (See numerous dictatorships throughout history).
A decentralized system would be something like the Israli Kibbutz (
https://en.wikipedia.org/wiki/Kibbutz). Of course, doing that country-wide would be hard, since you do need some sort of large centralized power to function (Military, transportation, etc).
Capitalism's strength (In the ideal sense) is that it allows a decentralized system that can rapidly adjust to changes. It also promoted innovation, basically using human greed as fuel to power a country. The downside is that what makes the most money doesn't always match up with what is best for the country, so you do need a centralized law system to keep it in check. See Enron for an example of this.
A Centralized Capitalistic system would basically be a warlord controlling all the money in a country. Basically the same as an extreme socialistic system gone bad.
That's an important point, I think. A greedy man with few moral scruples taking control of an extremely centralized government is always a disaster waiting to happen. Socialistic systems naturally start closer to that point, hence why you see it happen so often. Again, this is mostly from my own understanding of how this all works, so tell me if I am wrong of off point.
Anyway, ideally you want the best of both worlds. What that means is up for debate.
It makes me view all these cries about communism with a bit of a confused look, since I don't think they fully understand what is wrong with "Communism". Cries of "Less government control" I can understand, and make sense in context.