Collectivism can work economically if you have an intelligent, more or less homogeneous population, preferably with some sort of faith-based work ethic. 20th Century Europe and Scandinavia proved this. But collectivism tends to be harsher towards ethnic minorities than capitalism, especially in trying times. Russia and Germany are examples.
In times of economic surplus, some degree of collectivism is achievable because all parties are provided with their basic needs. And, while some may grumble about this or that, the reality is that from a materialistic standpoint, the poor today are better off than the middle class of two generations ago.
The question remains as to how our newly diverse society would respond to a call for collectivism in a time of economic shortage, where the median household wealth may fall below that of the middle class of two generations ago. I learned in school that we would celebrate diversity. Perhaps we will get a chance to put that theory to the test.