Israel has had several interesting attempts with socialist economic units, most notably the Kibbutzim, whose decline will give economists and social psychologists enough fodder for years. Most of these attempts indeed failed (some more so than others), but they worked quite well for a few decades.
One could argue that an economic structure – any economic structure, including capitalism – cannot survive without a supporting value system. In Israel, all of these attempts took place in a capitalistic environment, both inside Israel and in international markets. It is worth mentioning Max Weber's observations that it took many years for society's value to change enough to support free-market capitalism. For example, he describes how workers traditionally worked less hours when offered a higher wage.
One could argue that an economic structure – any economic structure, including capitalism – cannot survive without a supporting value system. In Israel, all of these attempts took place in a capitalistic environment, both inside Israel and in international markets. It is worth mentioning Max Weber's observations that it took many years for society's value to change enough to support free-market capitalism. For example, he describes how workers traditionally worked less hours when offered a higher wage.