Yes its works for 1 generation, but nobody ain't going to break their back again to develop next generation cutting edge machine, if the adequate reward won't be there. And some cheers are not cutting it for capable and ambitious folks.
Adequate reward in corporate world means of ten hundreds of millions or billions, since risk of failure and losing it all are often massive and they do happen regularly, risk gets bigger the more revolutionary stuff you do.
That's why US won cold war - individuals and private entities were massively motivated to do their best, and so they did and in few decades leaped light years ahead of eastern bloc. Anybody from former soviet bloc/eastern bloc visiting western country went through absolute shock and disbelief, and that includes Gorbachev visiting supermarket in West Germany in late 80s IIRC, he thought its some sort of propaganda trick on him. I went through milder version of it too, a powerful experience.
Communism in any form doesn't work long term, tried and tested many times already, period. It fails on people, and that's enough for a complete failure. Neutral non-greedy AGI could make this work, if not turning into some form of Skynet... but getting vastly off topic here