It doesn't.
There is plenty of evidence to show that it does, INITIALLY - Russia went from a feudal ag society to a heavily industrialized one in a decade or so. To do so it used up the capital rapidly, and factories WERE built. It is just that they produced garbage most of the time. Plus, since wealth was not being created the money runs out; thus poverty and stagnation.
If you could take a 3rd world country and socialize it; but just for 6-7 years then privatize the economy you'd probably have a vibrant (or at least decent) economy. This is of course assuming you protected private property and allowed upward mobility.
That has nothing to do with Socialism. It has to do with cannibalizing the aggregated wealth created by the previous economy.