In reality, their education system was overly focused on technical skills, neglecting essential life skills like critical thinking, creativity, decision-making, and many others.
The US is the only country in the western world that teaches strictly extra-curricular matters at a university level, afaik. I went to uni in the UK for computer science, all of my classes were only about computer science and it's subdomains only, there are no "life skills" classes.
This became apparent in the 90s when many supposedly 'highly educated' individuals were involved in fraudulent schemes, failed to build and stand for democracy
As opposed to the low levels of fraud and extremely healthy democracies of which countries exactly?
As for the rest of your claims I would like to see direct sources. The "essential items" tidbit in particular I find suspect because the definition is quite fickle and the idea is subjective and depends on circumstances. Cars were famously not very common amongst USSR citizens. What was though is public transport, and we're now in the west finding out that neglecting public transport and shifting towards personal vehicles has been a huge mistake, so that's that.