system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: Why, historically, do socialist countries often experience economic collapse?
gpt
An open market allows consumer needs, wants, and demands to match up with producer supply spontaneously and organically. A top down planning approach fails because leaders and decision makers in overly socialized economies are not capable of actually anticipating and providing for consumer needs and wants.

To bring that down a bit, you cannot build a car that fits everyone, because there is no best car for everyone. There is no diet or housing situation that is ideal for every family. In free trade each spender picks the one that best fits them, and less popular options downsize to fit their lesser needs while in a top down controlled economy that does not happen.

In a socialistic society time, effort, and resources are wasted because they don't have free market signals to drive their production. You end up with things like the Trabant being forced on unwanting citizenry at prices that are very inflated compared to their actual value.