Regulations don't eliminate capitalist exploitation. Even if only luxury goods were sold for profit in a regulated market the exploitation that this mode of production produces (the extraction of surplus value from workers, the alienation of workers from the commodities they're creating, etc) would still exist and would still cause class inequality. 1/2
@DaveRussell
Also, the existence of this could potentially lead to the restoration of the full privatization of all products, so it's better to get rid of all private ownership of the means of production to prevent a potential retrograde of society. 2/2