Yes it has been tried. Plenty of intelligent people saw how things would turn over *very* early on. Read this short story by Eugene Richter, a member of the German Imperial Parliament in 1893: http://library.mises.org/books/Eugen...c%20Future.pdf
He was pretty accurate in his assessment of Germany's next 97 years, wasn't he? The logical consequences of socialism have always been obvious to anyone with a brain, but are never obvious to wishful thinkers.