Capitalism vs communism is a red herring, similar to science vs religion.
The issue isn't the content of the beliefs, it's ideology itself. Ideology of any kind, be it capitalist, communist, rationalist, scientific, or spiritual will not work. What's required is genuine openmindedness, unbiased empirical experimentation, love, consciousness, holism, equality, and concern for the truth.
The reason that communism fails is actually the same reason capitalism fails: they are both dogmatic, just different styles of dogma.
If you want a healthy community, you cannot be ideological about government or economics. You must ACTUALLY empirically test for what works, not dictate what you think will work. No body really knows what the right balance is. Government is too complex to predict. It needs to be found empirically. But by being ideological people do not let the empirical tests be run. They are prejudging the experiment.
For example, ideally we'd run an experiment about which election system would produce the most democratic results. But of course this kind of test would never be allowed.
Or, for example, ideally we'd run an experiment to determine just how much regulation the banking industry needs. But of course this will never be allowed.
The issue is that egos in power will never want to relinquish their power once they have it. Society is fundamentally designed from the top down to be unequal. The ego will simply adopt whatever ideology best serves its agenda, be it religious, capitalist, communist, rationalist, secular, etc.
The problem is not capitalism or communism, the problem is ego.