The Socialist Answer.

The first premise of the socialist is that neither Pareto or Matthew exist, and that leads to a belief that if you have a great plan carried out by smart people then there is a chance of equality.

Socialists have conceded that equality of outcome is not possible, but equality of opportunity is a must. The plan is that everybody gets the same opportunity and that the government doles out the jobs and you do as you are told.

In this case productivity is less and therefore not as much is produced. As the scheme moves on the regulatory system and compliance system strangle the output and the economy starts to shrink.

To help out the government prints more money which is used in consumption, this process increases because production is down and therefore supply is down. As the supply is reduced the prices increase.