The New Economic Policy

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  • The New Economic policy
    • What Lenin did
      • at the 10th party congress 1921 Lenin announces:
        • end of war communism and the start of the New Economic Policy
          • war communism was only a temporary measure and that food requisitioning would be stopped
            • peasants had to give a fraction of what they made and the rest could be sold on the free market
            • intoduced  a new currency that would solve inflation
          • called it a tactical retreat in order to allow the economy to grow and preserve communist power
        • the banning of factions
          • did not want the party to split like the Brest-litovsk treaty in 1918
    • Why
      • the economic situation
        • industrial production was a fraction of what it was pre WW1
        • War Communism and its policy of grain requisitioning caused peasant uprisings
          • the Tambov uprising needed Red Army units to be relocated it was that bad
        • the communist government seemed to be at war with the majority of Russia- the peasants
        • the first signs of a famine where occurring
      • Growing opposition
        • the growing economic problems lead communists to believe the gov. where becoming very centralised
          • increased by trotsky's plan to extend conscription to civilian work
        • Mensheviks started to gain support in duma at expence of the Bolsheviks
        • a Workers opposition movement was occurring in response to government control over trade unions
      • The Kronstadt Rebellion
        • the Kronstadt base had three problems:
          • Lenin and the Bolsheviks   where almost excluding   the Soviet from decision making. they didn't want a one party state
          • wanted economic controls to be relaxed
            • The Kronstadt rebels where mainly Ukrainian conscripts rather than the soldiers who had fought in the civil war
              • Lenin and the Bolsheviks   where almost excluding   the Soviet from decision making. they didn't want a one party state
              • wanted freedom of speech restored
            • wanted freedom of speech restored
            • Trostsky sent elite red army soldiers to go kill them or send the to gulags
        • effect of what Lenin did
          • political
            • loosening of economic control, tightening of politcal control
            • all decisions made by Lenin + Politburo where binding on all communists
              • called Democratic centralism
            • NEP promoted greed and capitalism. most communists wanted it gone as soon as possible
          • economic
            • the majority of workers still worked in state run industries
              • "the commanding heights of the economy" heavy industry, banking and foreign trade kept by gov.
            • NEP caused a scissor crisis
              • price of industrially produced products rose while the money people made for their produced decreased
                • = people couldnt by industrially produced products such as shoes


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