This perverse incentive, however, is at least limited to a very small group of people, whose influence, with the correct exercise of state power, can be contained.

In a capitalist economy or capitalist-like economy, everyone's individual self-interest aligns with the collective self-interest a good percentage of the time, so relatively little state intervention is needed to keep it working well. The problem with alternative economic systems is that it is in almost nobody's interest to work for the common good, either because of a collective action problem (in communist or communist-like systems) or other reasons. That is why governments in non-capitalist countries are comparatively more heavy-handed with their application of state power. They have to do so in order to maintain their system when it is in nobody's interest to do so on their own.

Without addressing the more obscure systems which I do not know enough about to give an informed take, the difference between capitalism and communism is that the former works by assuming the worst of everyone and the latter works by assuming the best of everyone. And humans acting in large groups tend to act shitty and selfishly.