Keep reading! It's in good faith. There were real economic problems from perverse incentives that should be reckoned with in future socialist programs. Like, yeah, making bread cheaper than animal feed is going to lead to some farmers feeding their animals bread. Abundance of some products is going to make people less careful with these (I believe he discusses running the heat on maximum with the windows open and throwing out slightly broken stuff to get a new cheap one). Subsidizing low productivity factories and increasing the quotas on productive ones is going to make people upset and resentful.
Over this chapter and subsequent ones, he makes two excellent points: 1. they still largely managed to meet and exceed human needs even with these inefficiencies and problems, and 2. these problems are nothing compared to what came after the collapse of the USSR.