Which it kind of had to do lest their citizens noticed they live in abject poverty compared to other countries.
You'd have to be blind not to see parallels under capitalism. Employees cannot profit from inventions and improvements, so they don't engage in them. Improving efficiency means budget cuts and animosity from under performers.
This might not be true for smallest companies, but those don't really drive the economy.
Yes, but very often someone did that rationalizing suggestion and the manager got the reward. Most people suggesting improvements stopped after one small improvement when treated like that, so whole idea was doomed to fail by poor execution.
In any way starting a commercial enterprise would surely mark them as capitalist class traitors, wouldn't it?
Think starting a project within a large company, except you can't quit and start on your own.