Better use of manpower

In a socialist economy, everyone is employed, but people do not work too hard. There are more than sufficient people to provide service to customers.

In a free market economy, the business owner try to reduce the manpower to earn more profit. Some people are unemployed. There are insufficient workers to provide good service to customers.

The unemployed people try to make a living to run a small business. There is oversupply of these enterprises. To survive, they have to work long hours. This is not an efficient use of manpower.

I have seen China move from the first situation to the second situation over the past 20 years. In my recent stay in Huangshan, I was surprised that the hotel seem to be short of service workers.

Which economic model is better?

Perhaps there is no clear answer. It probably lies between the two extremes.