[lolc]

Oh sure lots of people argue for this. The scheme has been tried to death literally. Particularily egregious implementations were started by people invested in the Führerprinzip[0]. That idea has a German name because it was developed there. It happens that the worst (in terms of resulting misery) implementation came from Germany too. Luckily such constellations are always unstable due to infighting. The Chinese government will come down due to this if not for any other reason. If you want a stable government, make it so that competition between individuals stabilizes the group.

[0] https://en.wikipedia.org/wiki/F%C3%BChrerprinzip

With humans having supersocial traits like ants or bees, the idea of societies where everybody works towards a common goal does appeal to our senses. The reason they don't work so easily is because we have individual interests. Keeping part with the group is part of our desires, but this is a much weaker force than it is in bees, for example. That's because we breed as individuals, and not as a group. So group selection is much weaker. (Check out "Darwin's Cathedral" if you're interested in that topic.)

Now imagine if we did have the ability to form supersocial groups like ants do. We'd try to wipe out each other's group[1] and given today's technology we'd succeed!

[1] https://en.wikipedia.org/wiki/Total_war

In the end, just because it works for a company doesn't mean it works for a society. Companies can fail. They can fight. And they can be selective in who they include. Societies will create the boundaries of fair competition.