Ok, let me try to make this simpler and more direct, since abstraction clearly isn't your strong suit. The problem is with this:

production is decided by society itself

In practice, this becomes a committee sitting in a room somewhere deciding what & how much the society needs, and then how to go about producing it. The problem with this is that it can only ever be reactive and not proactive (a need must be recognized before it can be addressed, therefore the need must exist first in order to be recognized). Having a government make all production decisions will never be flexible or fast enough to actually sustain a society.