The dichotomy between the philosophical principles of socialism and the reality of the exercise of power, was the main cause of the crisis in communist Eastern Europe. This paper is to show how the divergence and incompatibility between socialist ideology and how to exercise it once its leaders came to power, was the main cause for the fall of Soviet communism. A government of the people, without a repressive and strong state, cannot be sustained over time, it tends to destroy itself. A government without a state or political leaders is utopian.