That's why capitalism works quite well in democracy (where multiple hierarchies are allowed) and becomes really oppressive in other political systems.
The socialism/communism failed where it made one social hierarchy dominant (so-called "communist" countries), just like all other systems like that. In situations, where one social hierarchy is not dominant, like Scandinavia, socialism actually works really well.
(Marx is partly to blame, in my opinion, because he focused to much on "state" without stressing "democracy" enough. But then, having single hierarchy in society was more or less a norm, so it does make sense what he did it.)
Of course, this has nothing to do with anarcho-communist ideals which almost always, in some form, reject hierarchy. The standard explanation (that WSJ espouses) is quite selective how it assigns blame to communism and praise to capitalism - it completely ignores the hierarchy problem. Interestingly, the free market ideal of capitalism (which is kinda unreachable utopia similar to what communism is to socialism) actually eschews any social hierarchy as well - everybody is his own master, and they are all competing at the same level.
So to sum up - I think human societies are "free" (and so "successful") to extent in which they can avoid having a (single) hierarchy. Of course, it's tough because we have natural tendency to have social hierarchies, and we also probably need them for cooperation. Both socialism's and capitalism's original goal was to sidestep existing social hierarchy, and the extent to which they succeeded in that task determined their practical success (but this is true for other systems as well).
Good example is Linux kernel development. It is hierarchical, at the same time, there are strong institutional guarantees that prevent this hierarchy to ossify too much (kernel can be forked by anyone, people up in the hierarchy have limited power over your life).
https://en.m.wikipedia.org/wiki/Syndicalism
You still get the choice between A and B but there is a much stronger emphasis on people getting out exactly what they put in.
It's all encapsulated in the subtitle. You can not do away with that without enslaving people. And enslaving people means killing your opponents which are bound to be numerous in any "normal" situation.
On the other hand, pure capitalism is harmful as well, to a lesser degree though. The sweet spot may be the right balance of Socialism and Capitalism.
Social safety nets and the correction of market failures in capitalist economies really have nothing to do with communist theory at all. All they have in common is the very bland observation that "life in a capitalist economy isn't perfect." But the meat of Marxism isn't about that. The core of Marxism is a bizarre theory and a prescription of how to fix the world that leads to misery and slaughter.
The fact we need to smooth the rough edges of the free market does not entail admitting even a mote of recognition to Marxism.
It's not like we have ever experienced it. We have never seen capitalism running free without major State intervention. At best we get Crony capitalism these days which is nothing like "pure capitalism".
The point of capitalism is that you are supposed to have a lot more competition because of fragmentation.
Any market based system starts to break down in terms of efficiency and value when there isn’t a robust competitive environment. It really requires small players. Look into any major corporation for an example — internally they look more like a command economy than a rich marketplace.
The sweet spot lacks corruption. It’s as simple as that. To inflate one over the other seems silly as they’re all good on paper and failures in reality.
We’ve neve had capitalism, we have cronyism and “socialism for the rich,” as my economics professors would...
E.g. see "The free market efficiently matches demand with supply."
https://youtu.be/3AvA73mH9dk?t=10m00s
The USSR was a totalitarian regime, not really socialist in the sense of anarcho-socialism or libertarianism which was the kind of socialism that was popular in the 19th century, eg Proudhon's writings or Oscar Wilde's essay "man's soul under socialism" and all those european libertarians.
https://www.marxists.org/reference/archive/wilde-oscar/soul-...
And socialism? State socialism is supposed to be the precursor to communism according to the troika of M/E/L. It has all the disadvantages of capitalism combined with all the disadvantages of communism. Social democracy - as practised in the Sweden of the '60s - can work to a certain extent: in a homogeneous society where the population is raised with something resembling the Benedictine work moral - ora et labora - and where slacking is frowned upon by the community. It is harder to make it work in a heterogeneous society with less social control as it gets all too easy for freeloaders to parasite on the work of others which will lead to friction in society.
Socialism is the government owning means of production. Communism is a form of government. As he mentioned, some communist countries (China) have managed to become capitalist.
The bloodshed from socialism (no private property) is well documented.
I still do not understand people who apologize for socialism saying that it wasn't implemented well. Capitalism might not be implemented well, and it seems to work.
The bloodshed from totalitarianism is well-documented and really didn't have much to do with Communism at all anyway.
Let's be wary of any equivocation between "destroy the people who can singlehandedly ruin lives by manipulating markets" (you will note this is a tiny minority of bad actors) and "destroy anyone who hurts my ego while I'm in power" (i.e., pretty much everyone).