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Initially, the Pilgrims at Plymouth Colony implemented a communal property system, where all land and resources were shared collectively. This approach led to widespread inefficiencies and a lack of motivation among colonists, as individuals received equal shares regardless of their contribution. The absence of personal incentives resulted in poor agricultural output, leading to food shortages and near starvation. Recognizing the dire situation, Governor William Bradford restructured the colony's economic system by allocating private plots of land to each family. This shift to private property rights instilled a sense of personal responsibility and incentivized individuals to work diligently, as they could directly benefit from their labor. The result was a significant increase in productivity and food production, which ensured the colony's survival and prosperity.

The Pilgrims initially practiced a form of communalism, akin to socialism, where property and resources were owned collectively, and goods were distributed equally among all members of the colony. This system failed primarily due to the lack of personal incentives. With no direct correlation between individual effort and reward, many colonists became disenchanted and less industrious, leading to decreased productivity and food shortages. The communal system also fostered resentment among colonists, as industrious individuals received the same share as those who contributed less, leading to social tensions. The inefficiencies and hardships experienced under this system prompted the shift to private property ownership, which aligned individual effort with personal gain, thereby enhancing motivation, productivity, and overall success of the colony.