Its not destroying it, just making it less efficient, not driving people and companies to deliver their best (but often at a big personal mental & physical cost).
In ideal world you have it all, thats what Star Trek and similar utopias were based on. In reality, the more you push to the left, the worse system gets since it always fails on the same premise - it expects ideal human beings, rather than greedy selfish real people(TM) with their own priorities that may diverge from common good.
I've seen the mix of socialism and communism dictatorship in my home country (so a vastly different concept than you describe even if spiritually in same direction), it destroyed the spirit and work ethics of entire nation so deeply that even 2 generations after it all collapsed its not back in any way, and maybe never will be (to detriment of entire nation).
While capitalism doesn't care, it pushes everybody to their max, for better or worse, weak or unlucky are allowed to fail all the way to the bottom and all the glory to the best and only the best.
In ideal world you have it all, thats what Star Trek and similar utopias were based on. In reality, the more you push to the left, the worse system gets since it always fails on the same premise - it expects ideal human beings, rather than greedy selfish real people(TM) with their own priorities that may diverge from common good.
I've seen the mix of socialism and communism dictatorship in my home country (so a vastly different concept than you describe even if spiritually in same direction), it destroyed the spirit and work ethics of entire nation so deeply that even 2 generations after it all collapsed its not back in any way, and maybe never will be (to detriment of entire nation).
While capitalism doesn't care, it pushes everybody to their max, for better or worse, weak or unlucky are allowed to fail all the way to the bottom and all the glory to the best and only the best.