but then, like most Communist economic theory, that hardly matches reality. Most people take their profits and either reinvest it (creating new capital) or spend it (stimulating demand, which leads to new jobs and economic activity).

Either approach is more efficient than sending the money to government in the form of taxes where a good percentage is skimmed off the top to pay for all of those bureaucrats before being fed back into the economy. Every layer of government adds more overhead, so the higher you go, the less efficient it becomes. For example, I remember hearing congressional testimony on CSPAN several years ago that stated if you took all of the federal funds allocated to help the poor and divided it by the number of the poor, it came to about $50,000 per family. However, as much as 80% of that funding went to government overhead.