You seem to underestimate, like all post-Enlightment radicals, socio-biological constrains. Competition and hierarchy are hardwired into humans. One suppresses them at a cost. The cost may be really, really high. A “catastrophe” of your father. Without suppression mechanisms finely tuned by centuries of culture and tradition people degenerate into atomised mash. Regardless of resources and technology they have.
That’s what happened to Russia. It is not arch-capitalist as you posit, neither socialist. There are a lot of “socialist” mechanics, a lot of redistribution. Very low unemployment, strict labour regulations. Free higher education almost for all. But all these mechanics is undermined by the lack of social cohesion. It was destroyed together with capitalism, and never recovered. By 1980 USSR had necessary resources, technology, and conscious will of ruling elite to build a country as close to perfection as modern Scandinavian states. But it lacked the “building material”, society itself.
That was the cost of blunt, brute, suppression of competitive and hierarchical traits of human nature. German Nazism was a more refined approach. It exported all strife and domination passions outside, achieving high social cohesion inside. Better social engineering, faster and bloodier catastrophe.