The tensions are between centralized authorities(command economies) and individuals(free market) making decisions.

The crux of the debate is whether the system should be centralized more or move toward individual human actors, whether these system could do better than the other, or whether it is something in between.(Ethical and political views are another story)

I believe the pundit was arguing that the most extreme example clearly demonstrate the fallacy of using central planning to do resource allocation.

Swedens, Denmark, and Canada are mixed economies which make it difficult to discern the effect of free market economies versus socialist system.