People must still compete for resources in a socialist economy. In fact, the competition is intense. On the other hand, thanks to markets, basic necessities—and even basic luxuries—are now more more accessible than ever.
The nationalists at the Constitutional Convention had so far carried the substance of their program: the creation of a supreme national government and a Congress empowered to veto state laws whenever Congress thought the states "incompetent."
The impossibility theorem, developed by Nobel-winning economist Robert Mundell, paints a false tradeoff between the free movement of capital, fixed exchange rates, and effective monetary policy. Under a gold standard, all three are a possibility.
The central bank has basically destroyed the business of risk, and commercial real estate remains a looming disaster. As a result, banks aren't lending to regular people. The economy increasingly relies on little more than newly printed money.
Contrary to what Krugman might argue, the growth of organized labor in the US workforce was much more the work of government prodding and outright coercion than it was a natural progression of the American workplace.