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I don't remember them calling it evil, but it is antithetical to most of the core American principles. That's not to say we haven't been chipping away at those principles and freedoms ourselves, but they did a decent job of laying out those principles in the film. Naturally, being a propaganda piece, they chose to ignore the flaws in our system and didn't bother to give any benefits to a communistic society, but what did you expect?
Not that I can think of any benefits of a communist society right off the bat that couldn't be had by a democratic socialist state/republic.
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