As an Engineer and Scientist, I view the problem at a more abstract level. The problem occurs with any economic or political system that has positive feedback. Communism and Capitalism both have positive feedback but with different underlying mechanisms. On the other hand, a Socialist system may provide sufficient negative feedback through progressive taxation to counteract the detrimental positive feedback of Capitalism or Communism or a mixture of both. That is the balance that some European countries and China may have achieved.

Why is positive feedback such a problem?

The dynamics of positive feedback inevitably lead to a concentration of power. An application of power, even when it has adverse effects on a society, tends to increase the power of those already in power. Furthermore, those who apply that power do not feel the impact (feedback) of the application of that power no matter how barbaric. Thus Madelein Albright could state that the US killing half a million children in Iraq was "worth it" (see https://www.youtube.com/watch?v=UYagQuqK31s). Would she have thought it's worth it if those killed included her extended family's children and grandchildren?