What you describe is not socialism. You have created a psuedo-communist society much like that seen in "communist" Russia. You have, more or less, destroyed the fundamental principles of socialism and created a simple dictatorship.:The supreme commander exercises power over the entire nation
What your entire post seems to based on is your ideas of "communism," that is, the ignorant western view of Stalin's bastardization of true communism. Why, in fact, would a supreme commander attempt to "exercise" power over his subjects (as Stalin did)? When you do this, you create a new class, a more powerful governing class. This new governing class upsets the equality which must be instated, and you begin again with the class differences seen in your free market capitalist society.
I understand where your points could possibly be coming from, yet I think they are misguided. Under this system, or course of events, socialism simply is not possible.
". . .Where it is a question of a complete transformation of the social organization, the masses themselves must also be in it, must also themsleves already have grasped what is at stake, what they are going for, with body and soul."
-Freidrich Engels
