"From each according to their ability, to each according to their need."
That is one of the core philosophies set forward by Karl Marx and its pretty much the heart and soul of the theory of communism. Ideally, people would contribute to the best of their ability and excel for the greater good, essentially the ideal that willderphil is talking about.
Capitalism as it is popularly considered today is the unfettered and unregulated application of market forces. Supply versus demand. Ideally, people would be rewarded for excelling with wealth because of the value they bring to their business or product, essentially the ideal that most modern conservatives talk about.
Unfortunately we live in a world where neither philosophy is workable. People lie, cheat, steal and generally make a mess of everything. Unregulated businesses engage in anti-competitive actions, price fixing, profiteering and abuse of their employees. It wasn't so long ago that unions were formed not because of some evil conspiracy, but because workers were not getting paid the value that their work was bringing.
And if people aren't rewarded for excelling, then the drive to excel becomes purely personal and just like with a capitalist system, people lie, cheat and steal. If you could maintain your lifestyle by doing the minimum work necessary then there is no drive to do more. Idealism doesn't change this.
Ultimately both communism and capitalism in their pure states require a level of faith in humanity that is simply naive and foolish. Both require individuals to co-operate with others for the greater good, to not cheat the system for personal gain. And both are open doors just waiting for corruption to pervert their respective goals.
The notion that an individual will work just as hard for the minimum to survive as they would for luxury is straight up self delusion. Strangely, both communism and capitalism require a level of selflessness that simply doesn't exist.
Changing gears, it's been a very long time since direct democracy was employed. I'm reasonably certain that the Greek city states had direct democracy and even they found it unwieldy trying to get 10,000 people to agree on something. Imagine trying to get 300 million. That's an intimidating task.
Now imagine trying to get those 300 million to agree on several issues a day. It's foolishness.
The thing is, California gave us a taste of what direct democracy would be like. Californians essentially voted on issues regularly. A tax increase required approval by the populace. Budget issues required approval by the populace. And guess what happened? The populace voted for social programs and other expenditures in order to improve the quality of life of the average Californian. Sounds great. It is. But then the consistently refused to increase taxes. Every vote on a tax increase to pay for all the programs they had approved failed. And so the Californian state government went bankrupt. And now their programs are being slashed because there's no money to pay for them.
Ultimately, Men in Black (Of all things) got it right: A person is smart. People are stupid and panicky. If every governmental decision was handed over to the populace the government would cease to function. You look at today where most people won't even put in the minimum amount of effort required to educate themselves about the issues their representatives are talking about, preferring to simply be told what to believe by whatever politician is the most charming and appeals to their preconceived notions the most. Now imagine that those people who are refusing to educate themselves are asked questions regarding scientific funding, school curriculum and law enforcement. Do you really want the majority making those decisions?
I certainly don't. The majority has an abysmal record.