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DanielLC comments on How should negative externalities be handled? (Warning: politics) - Less Wrong Discussion
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I think we're more talking about what officially happened.
There was still plenty of stuff they did with money, wasn't there? They didn't just give everyone the same set of goods. They gave them a few basic goods, and money to buy anything beyond that. Right?
There were things to do with money -- but not a whole lot, because there were shortages of just about everything you might want. And of course, if you can't actually buy a washing machine with money (leaving aside the massive black market, of course), there's not much reason to work hard at your job producing washing machines.