The writer is a dingbat named Wendy Liu.
You don't have to go back to the 50s. The Soviet Union was one huge downhill slide from day one. By the time the 80s hit, their inferiority as a producing economy was beyond apparent. There was no propaganda that would hide it.
The USSR only ever exported raw materials (oil, metals, lumber, etc) and agricultural products. There was no demand for any of the garbage they patched together, using outdated technology. It wasn't for the lack of aptitude. It due to the complete the lack of motivation and updated knowledge/skills.
If there is no competition, there is no reason for improvement and one-upmanship. Since all companies were state-owned, there was no competition between them. People just did enough to afford their nightly bottle of vodka.