Socialists believe in two things which are absolutely different and perhaps even contradictory: freedom and organization.
Given that people and incentives always exist, the primary outcomes which government regulation can produce are negative. Among them: rent seeking, artificially-high barriers to entry, and outright fraud. The existence of these tendencies cannot be eradicated by regulation. Instead, two of the three mentioned here – rent seeking and higher-than-expected barriers to entry – are direct results of regulation.
"The upshot is that efforts to extract people from markets (e.g., communism, socialism, fascism) encourage them to revert to the innate savagery of dealing fairly only with kin and fellow tribespeople."
If one set of people can use a monopoly of coercion, as a means to further their ends, they will inevitably do so – at the detriment to another set, or as is our current case, everyone else. Returning to Bailey, "Successful societies are those that adopt market norms and they tend over time to outcompete societies organized in more primitive top-down ways." Primitive is an excellent descriptor for the gun-wielding cesspool of self-interest that is the coercive state.