What do you think bloc countries and Soviet union were? Some kind of communist utopias? They appear to "didn't have dire poverty" because "social parasitism"[0] was a criminal offense for a long time. Like, police (sorry, "militia"!) could stop you on the street during work hours and arrest you if you didn't have a document from your boss or from a doctor allowing you to skip work. In later times "undesirables" were just forcibly relocated from "nicer" places [1]. Unfortunately description of these in English are quite lacking, but as a person born in USSR I can assure you that all the nostalgia for that times is either coming from old people who actually just nostalgic for their youth (old joke on the subject: - Gradpa, why are you keep saying it was much better under Stalin? - Because I could still get an erection back then!), or intentional political propaganda.
[0]: https://en.wikipedia.org/wiki/Social_parasitism_(offense)
The people who live in St. Petersburg and Moscow today are there because none of their families/ancestors were purged.
The ones who did are in Siberia, or dead.