The video you linked is highly relevant to institutions, which are all too susceptible to leadership failure. However, while individuals can seek the wisdom of the crowd, being subject to the whims of some despot or majority of society instead of being absolutely sovereign is horribly abhorrent. One aspect of how communist countries fail is by being so despotic that individuals become completely averse to the imposition from above of the conduct of their affairs.
Everyone became a saboteur in the USSR, while in China during the Great Leap Forward, the obedience of the masses serially doomed them to the consequences of the knowledge problem, which was mass starvation.
Freedom is necessary to prosperity.
Thanks!