Eastern Communist states were essentially reduced to rubble after WW2. This did make building to the same economic level as an entirely untouched America, or even West Germany (which was deluged with aid and given preferential trading terms), something of a challenge.
You are implying that this was dictated by political rather than economical reasons, but that may be not entirely correct.
> we pretend to work
This is true - for some workers. Thing is, the Western society in not and has never been different in this regard. And, some of the "job creation" policies could exacerbate the problem even more.
The main question is: do you create a job because there's some work to be done, or do you create a job because somebody needs a job?
Lots of older people in Easter Europe think communistic days were better and wish they could go back: state provided housing, education, healthcare and a job. Not great, but basic (as in basic income).
See: http://www.crf-usa.org/bill-of-rights-in-action/bria-19-1-a-...
"In the workplace, almost everyone had a job. Wages,however, lagged far behind those in the Western democracies. A common joke was, "They pretend to pay us, and we pretend to work." But rents, goods, and services were far cheaper than in the West."