So you’re advocating a Chinese Communist Party model or what? A central authority determines what the market should be vs. what the market _is?_
"Local people electing a local government choosing what gets built locally is communism"
If the local government can simply declare "there are enough X, no more are allowed" then the rich, powerful and well-connected elite can solidify their privileged positions forever. Raise prices, lower wages, provide poor service - it doesn't matter, their buddies on the city council will guarantee no one is allowed to open a competing business.
If you want to protect the lower class and middle class, you don't want to hand the elite a tool to turn their business into a local monopoly for the price of a campaign contribution.
The elite have all the tools they need already, they always have had that. Representative government is the modern change that keeps them from dominating everything.
And for whatever it’s worth there aren’t nearly enough car washes where I live.
This exists in America, in ways that have generally escaped the label of "Communism". The most basic example of this most will be familiar with is zoning laws, but there is significant precedent otherwise. There will always be a gradient of control, and claiming that a singular government action in expansion is therefore communist is not intellectually honest.