The article shows that the effect of the causes that led to the destruction of the USSR has been preserved in Russia. At the same time, it is proved that the rejection of socialism and the transition to the market only strengthens the destructive effect of these causes. It is impossible to reveal these reasons within the framework of the economic doctrines "economics" and "political economy" because of the erroneous postulates underlying them. Because of this, the forecasting method based on these exercises cannot serve to develop measures that contribute to the sustainable development of the socio-economic system. The backwardness of "economics" and "political economy" is explained by the absence in both teachings of a theoretical understanding of the practice of world (Soviet) socialism, which was facilitated by the exclusion from research of Smith's remarks about the interaction of "labor" and "nature" in the creation of food in agriculture. This fact has led to the adoption at the institutional level of an agrarian scientific and technical policy based on Liebig's erroneous doctrine of the use of mineral fertilizers, which leads to unprofitability of agriculture, a decrease in the quality and quantity of food produced, an increase in food prices, impoverishment of the population, a decrease in immunity to diseases and an increase in social tension. Institutional traps that hinder the development of the economy are identified, and measures are outlined, without which it is impossible to achieve sustainable development of the socio-economic system.