How does this lead you to say social systems cant work?
I never said that social systems can't work. The confusion comes maybe because I said that most social engineering is based upon that misunderstanding. Social engineering. Wanting to transform the social relationships of humans, like communism or the like. Wanting people to want other things than their own interest.
I'm not a Socialist or Communist so don't mistake what I post as a proponent for Socialism or Communism. But I don't think you understand what Socialist means. Doesn't mean to transform social relationship of humans or making them want things other than their own interest.
It means the ownership is socialized (owned by the workers) as opposed to owned by capital (owners). If applied to macro like the Communist experiments of the 20th Cent., then clearly they all failed (with the exception of China)
But it can be applied to micro as well. I.e. co-ops vs corporations. Socialized healthcare (in Sweden, Canada, Uk, etc..). Social Security in USA. And so on
Re: Ethics.
Clearly paying a starving person a bowl of rice to work 16 hrs a day is unethical. If you want break it down to economics. If you exploit labor like this where will you get consumers? When people have decent wages they can become consumers so in the long run the producers will enjoy more wealth.