That is because it is, 100%. If your teacher freaked out over it, she is having trouble reconciling it with the American cultural meme of "Communism is pure evil.", which stems from the Cold War, not religious doctrine.
And yes, something is off if a tithing LDS family is living on food stamps. I have had family who lost jobs and had no money, and the LDS church gave them food and money to cover bills, until they could get back on their feet. Such situations tend to be handled at the local level, and there are definitely good and bad leaders in all organizations, including churches.