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Yes, central planning really does not work well - the equations of human needs, wants, dreams, and skills cannot be easily analyzed and solved to an optimal solution. In addition, entrepreneurial activity tends to be discouraged in a centrally planned economy.
The keys to capitalism are 1) vibrant opportunities for entrepreneurship 2) regulations that are not odious, but reign in negative externalities and promote positive externalities 3) careful, non political management of central banking facilities 4) social mobility which is encouraged by education 5) social safety net to help citizens manage risk 6) wide participation in the economy These keys tend to exist in tension of each other and involve trade-offs. It feels like to me that we're really failing on 2, 5, 6.