If this is meant to be a reference to Soviet-style communism, then all that shows is that centrally planned economies run by dictators end up poorly for everyone.

They don't end up without wealth disparity, though. In fact, USSR had the highest wealth disparity at "peak communism" under Stalin, when well-off party bureaucrats and high-ranking professionals hired housemaids - openly and legally - to clean their large apartments and dachas, while attending high school required paying money.

Another way to think about it is that USSR was a society in which capital was still controlled by a small elite, but collectively as a corporation (the Party). A particular apparatchik would be living much better than the average worker for ultimately the same reasons - because his lifestyle was financed by wealth produced by other people who did not have the claim to the wealth they produced under the law. But he didn't own his cars and his dachas personally; he merely used them so long as he retained his rank within the Party (which for many people could be a lifetime thing in practice, purges aside).