That's how (successful) societies have been run

for the last million years or so.

Our species was designed to function in an environment of scarcity. The only way we could survive is through cooperation. Cooperation in that context means equitable distribution of resources. It's how the human species developed the concept of fairness.

We have enjoyed a meteoric increase in wealth because of our exploitation of resources. Thus our system of resource distribution is - complex. And it frequently fails. We haven't been rich long enough to learn how to manage abundance. And the way things are going I doubt we'll get the chance.

All the schemes that relate to "competition in the free market" and "survival of the fittest" are designed to benefit most those who have the most. Thus, they depend on a temporary state of resource abundance and inevitably lead to civil strife and general uncivilized behaivor.

The longevity of a civilization, and our species, will depend not on acquisition but on generosity, which makes equitable distribution possible.