hi Wildreamz,
As a history buff, I am afraid I have to take umbrage with your statement "
tested throughout history".
As a matter of fact, capitalism is only a recent phenomenon compared to our thousand years of civilized history. Even if we start modern age with the Renaissance era (1600-1700s), Capitalism took half of that period (~150 years since 300years ago) to evolve. For comparison, Communism took about a third of the time (~100years since 300years ago) to evolve. Not really an "apple to apple" comparison.
That said, the dichotomy that we experienced post WW2 between East Berlin and West Berlin - does seem to suggest that Capitalism has the upper hand. The people are the same, just separated by a wall. Capitalism seems just fine for the Germans.
However, in the first 20years after WW2, the Soviets seemed to have the upper hand over the Western world! After all, the Communists were the 1st ones to send something up in orbit in 1960, before the competitive spirit of the Western world overcame communal spirit (human nature is weak and corrupted after all) and sent man to the moon by 1969. That decade was probably the pivot point in history between 2 idealogies - concidentally also the start of semiconductors, imagination (Steve Jobs, Bill Gates and Jeff Bezos were teens then - right person at the right place at the right time!) and Nifty Fifty.
So what is my point after regurgitating all these?
My point is that it is dangerous to take lessons from history, if we do not apply the correct context or look at longer periods.
Would a non-command and control economy have taken China to its current state? Of course we don't have an alternate history to compare. But I would like to think that another big democracy, ie. India with comparable population/land mass can be used as a potential apple-to-apple comparison here.
GDP per capita (2021)
India: 2,256.59 USD (Independence: 1947)
China: 12,556.33 USD (Independence: 1912 if you are nationalist or 1949 if you are communist)
Mind you, India had the Victorian system inherited from the British and came off relatively unscathed from WW2. But just comparing the GDP per capita, China looks way ahead of India. In our lifetimes, what is the probability of the Indians overtaking the Chinese?
Finally, Is the Red Dot's story a history of a relatively "command" economy?
P.S. This world is much more murky and grey, than shades of black and white.