Yes, exactly. Except socialists always seem to forget there's a necessary economic component to successful rule.
A demoralized & enslaved populace does to make risky investments in new, unproven technologies, nor engage in other the types of activities that generates new wealth.
Thus, the state is forced to maximize the (ever declining) output of the last great investment cycle (before they took over & gained control).
The end of socialists states is always the same: deary (think Detroit), lack of investment/initiative, deeply cynical people who abuse the system, etc.
How is such a system to compete with other, open societies? Even more importantly, how is to pay its bills?
Ultimately, just like any dead-beat, they eventually run out of money and/or people willing them to lend them IOUs.
Eventually, the state simply runs out of money to pay for police, military, etc. Look what happened in the USSR when they could no longer pay salaries - there was a flood of small (and large) arms that hit the black (and not-so-black) markets.
We are getting very close to this stage. The system is way, way beyond correction.
Socialism’s just another Ponzi scheme. Lie after lie after lie after lie. - just like an endless train of boxcars passing by.
Sooner or later it always fails. But usually not until it leaves a trail of enslavement, mkisery, death and despair in its wake.