The government determines prices for socially significant types of products - this is, of course, good for people. Because no matter what costs for their production, prices will be at a level acceptable to the general population. But compensation for losses for those industries that produce them is bad for the state. But these are the rules of the game now.
For example, agriculture. Collective farms (agricultural enterprises) produce products. Do you think the management of the economy of this farm will be effective, provided that it carries so many overhead costs? Of course not.
If the government sold their products at cost, it would be several times higher for the population than it is today. Therefore, the state compensates for all these losses at the expense of the budget or cross- at the expense of the revenues of industries with super-profits, for example, oil, gas and fertilizers (when the market allows).
Now imagine a private business, for example, a farm. Even if it can effectively manage the economy, it is almost impossible to achieve at least its costs at the level of government price parity. Therefore, with this algorithm of operation, farms can operate from an economic point of view only with the support of the state, or they can close down.
The situation is similar in other industries.
It turns out to be an interesting paradox.
There are industries that have high incomes and, accordingly, pay their employees decent wages, which can certainly be enough to purchase socially significant types of products. Then why does a preferential price (state parity) also apply to such consumers?
What is the point of social justice, then, if everyone's incomes are different, and everyone buys products at the same price?
In addition, all this hinders private business, which, in essence, could replenish the budget, and these funds could already be used to support the poor, for example.
In particular, this explains the low business activity on the part of private businesses.
Only market mechanisms can bring the allocation of resources in line with the real cost of labor and production, eliminating artificial distortions and hidden corrupt schemes.
