Why Communism failed At the outset, let me just say that unchecked Capitalism does not work, leading to monopolies and oligarchies and extreme inequality. It is incumbent on the government to ensure that the economic benefits are distributed fairly and flows (not trickle) to all sections of the population. This needs to be done thru what I call as Welfare Capitalism. Some may call it democratic socialism, but I prefer not to use the word socialism, as many people fear the word s ocialism due to constant fear mongering by powerful media and due to varying interpretations, especially one where socialism means no private ownership of anything. Welfare Capitalism would entail a market economy with: Progressive taxation - the more you earn, higher the tax rate Wealth tax on extreme wealth and Inheritance tax Ensure affordable food, education, housing and healthcare for all. Subsidize as needed Protect workers rights in terms of reasonable work hours, liveable wages etc...