Objectivism and Communism are two sides of the same coin, and fail for the same reason. Objectivist (read, Libertarian) philosophy rests on the requirement that people base their decisions on rational self-interest. Communist philosophy rests on the requirement that people base their decisions on rational communal interest. Both schools of thought promise a utopia where everyone lives happily ever after, but neither can deliver.
Why?
People are not (only) rational. Unless you are Spock, you do not base your decisions entirely on rational thought. Emotions play a part, and that is okay. Emotions are a part of who we are as a species, and we should not try to deny that. But a consequence of that fact is that our decisions do not purely reflect rational self or communal interest. (and, truth be told, even when we try to be rational, sometimes we are just plain stupid). An objectivist may make a short-sighted decision that he/she thinks is in their own interest, but actually hurts them in the long run. A communist may do something "for the greater good" that crushes the individual, and by extension the whole society. Mankind is more complex than any simple school of philosophy can encapsulate.
What does this mean?
Trying to adhere to a rigid philosophy does not do anyone any good. Real-world consequences must take precedence. Do not misread me: I do not believe that "The ends justify the means." On the contrary, the ends usually reflect the means. But if we take the time to examine cause-and-effect, and learn from experience, we can find the proper balance between ideologies.