Kondratieff was correct when he wrote that communism, socialism and capitalism will all fail because they are designed to fail. The basic underlying principles have flaws.
Communism fails because it doesn't value creativity, encourages collectivism, doesn't value individual rights, doesn't provide incentives to work, has a militant attitude toward imperialism, reveals indifference to environment, it has a basic lack of ability to distribute commodities in a fair manner, it too easily goes into a class society, uses mass murder as a control device, and most of all, communism is not grounded in reality.
Socialism fails because it is unsustainable in the long run, it is not consistent with fundamental principles of human behavior. it is a system that ignores incentives. A centrally planned economy without market prices or profits, where property is owned by the state, is a system without an effective incentive mechanism to direct economic activity. Socialism fails to emphasize incentives, in fact it bases its theory on the belief that incentives don’t matter!
Capitalism fails because global corporations are too big. JP Morgan Chase has assets of $2 Trillion, 240,000 employees, and offices in 100 countries. Dinosaurs perished because their huge bodies possessed tiny brains; modern dinosaurs fail because their massive bureaucracies possess miniscule hearts. Global corporations scorn civil society, while workers pledge allegiance to the enterprise. Corporate employees live in a bubble, they work obscene hours and vacation with their co-workers. Multinationals develop their own code of ethics and worldview separate from that of any national state. Corporate executives don't care about the success or failure of any particular country, only the growth and profitability of their global corporation. Many large corporations pay no U.S.A. income tax ; in 2009 Exxon Mobil actually got a $156 M rebate. Global corporations live outside the law as outlaws. There is no invisible hand that regulates multinationals. Motivated by self-interest, wealthy individuals and corporations believe an "invisible hand" operates in the background ensuring that capitalist activities ultimately benefit society. This concept became the basis for the Chicago School of Economics teaching that markets were inherently self-regulating. There is no "invisible hand"; unregulated markets spelled disaster for wage workers. The "recovery" of 2009-10 ensured that "too big to fail" institutions would survive and the rich would continue to be rich. Meanwhile millions of good jobs were either eliminated or replaced by low-wage jobs with poor or no benefits. Profits are tied to investors, not those men and women who make the goods and supply the services, worldwide. Brad DeLong, U.C. Berkeley, wrote of the “intellectual collapse” of the Chicago School, and Paul Krugman wrote that Chicago economists are the product of a Dark Age of macroeconomics in which hard-won knowledge has been forgotten.