Karl saw the recurring boom and bust that accompanied the arrival of the industrial revolution.
He concluded that the flaw lies deep within the market system itself, and what was needed to correct it was
massive government intervention. He didn’t make the connection to the banking practice at the time.

The old Soviet Unions socialist economy failed precisely because it did not have capitalists nor markets. They had government planners.

Fluctuating prices in the free market aligns production with consumption. A rising price for something signals entrepreneurs that there’s profit in producing that something. Private property are then mobilized to meet the demand by profit- seeking, loss avoiding capitalists. Profits (or lack of) reveals if their endeavor and methods are sound.
The recurring shortages in socialist economies occur because their planners cannot make those economic calculations.

Karl’s vision was thrown out by the Russians and the Cubans are still standing in long lines.