You’re roughly describing the whole point of Yugoslavia’s workers’ self-management. This is in contrast to what the Eastern Bloc had with the government establishing and running the factories directly. Also in contrast to the capitalist system where someone with enough capital establishes and runs the factory themselves while employing the workers.

And no, you didn’t have to live in a mud hut for it. In fact, it was more affordable for the regular worker to build a house than it is now. Those houses were/are comparable to what you see in Germany today. Go check out the real estate market in Slovenia if you don’t believe me, look for houses built 1950-1990.