How does the Twentieth Century Motor Company demonstrate the results of the communistic idea of "from each according to his ability, to each according to his need"?

Rand uses this example to show what will happen to the entire country if the communistic platform is followed. When the government takes the fruit of their labor from the able and parcels it out to the needy, all motivation ceases. The able lose motivation because they do not get to enjoy the results of their labor. The parasites lose motivation to try and help themselves because they get what they need without having to work for it.