Human beings like competition, wealth, comfort and power. In this system, as in all systems operated by humans, some humans make decisions that affect other humans. Inevitably, some humans accumulate more power than others and most use it for their own benefit. No system can guarantee an equitable distribution of resources, or wealth, or comfort because some humans will control that distribution. It is not automatic. So, there is the possibility of some kind of central dictatorship, or a "dictatorship of the proletariat." There will be some coercion, more under some systems of government and less under others, but under none will there be equitable distribution, and there may be enormous reduction of personal freedom inherent in such a system.
Despite all its flaws, what capitalism can do, and has done, when it is properly regulated, is to create an atmosphere of incentives that cause many individuals to dramatically exert their beings, in invention, in organization, in promotion, in just hard work, to improve life in many different ways. And because this system can be so decentralized and still function well, it makes it possible for most people to achieve decent lives, and to enjoy substantial personal freedom. However, it isn't always properly regulated, and if not properly regulated, it will spiral out of control with increasing consolidation and elimination of competition, much greater concentrations of wealth and enormous disparities of wealth and income. We are in one of those cycles right now. Such cycles have existed in the past, and they have been broken. There is no reason why this one cannot be broken as well.
The system you reference is far more frightening to me, and I think far more dangerous to human freedom, than the flawed one we have now.
= new reply since forum marked as read