I totally agree, the pure form of each system is a complete failure.
In many cases, leaving developments to the decisions of the individual alone creates bad situations in which everyone loses.
In economics, this is sometimes expressed by individual rationalism leads to collective irrationalism. This regularly happens in the case of public goods (such as natural resources), as consumption of these goods cannot be controlled individually (like private goods, where you only get it if you pay the price).
Take the example of a football stadium, in which the spectators don‘t see everything pf the pitch when staying seated. Individual rationalism makes a spectator stand up to have a better view. As a consequence, the one behind him also has to stand up to see at all, and eventually everybody is standing and nobody has a better view than in the beginning, but everybody is less comfortable. Here the state comes in by regulating that nobody is allowed to stand up.