Bellamy's society is controlled solely by the government. The government is the only producer, the only distributor, and the only employer in the nation. In actuality, competition is essential to an economy. Competition ensures that businesses are running efficiently. If a business failed to do so, it would eventually be forced out of the market by competitors.
Competition gives the consumer a choice.
If the consumer is not happy with the quality of a product, he or she can turn to another store which produces a similar product. In the case of the twentieth century society, if a person does not approve of the choices offered at the warehouse or if they are not satisfied with the quality of the product, he or she has nowhere else to turn. Competition also keeps companies searching for more efficient ways to use their resources and improve their product. If they do not partake in this activity, they will be forced out of the market. Bellamy's lack of incentives and inaccurate assumptions about human behavior are two interrelated faults in his society.