What you described is hardly socialist. More like State Capitalist. Including the Soviet Union. Remember, Lenin's NEP (New Economic Policy) of 1920? Also any system, including our neo-liberal economy works fine until the economy falters.
"In every country in the world a huge tribe of party-hacks and sleek little professors are busy 'proving' that Socialism means no more than a planned state-capitalism with the grab-motive left intact. But fortunately there also exists a vision of Socialism quite different from this." George Orwell - Homage to Catalonia.