War Communism
- Created by: CharlotteCollins4
- Created on: 07-05-15 21:26
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- War Communism
- Before the Civil War
- Lenin's aim was to replace the capitalist system with communism
- Lenin created the Supreme Council of National Economy
- Offer central control of the economy
- 14th of December the army used to take over all banks
- They were then declared to be owned by the communists
- 21st of January Lenin declares that all of the debt of the Provisional Government and Tsarism is illegal and wouldn't be paid
- All landowners lost their estates
- State Capitalism
- Recognised workers control of their factories
- Workers took control of the factories and set their own hours of work and levels of production
- Industrial production slumped
- The economy started to operate solely on a barter system
- Shortages in goods produced a flourishing black market
- What was war communism?
- Supreme Economic Council formed to run the economy
- Nationalisation of industry
- Decree on nationalisation
- Made all large industries liable to nationalisation without compensation
- By 1920 around 37,000 businesses had been nationalised
- Decree on nationalisation
- Private trade banned
- Grain surpluses were seized from peasants
- Grain sent to troops and cities
- Anyone thought to be withholding grain could be shot
- Decline in the use of money
- Rationing introduced
- Based on worker outputs in industry
- Rationing introduced
- Use of terror and slave labour by the state to achieve goals
- Outcomes
- Chaos
- Inadequate rations lead to a flourishing black market
- Political commissars found it impossible to eliminate the free market
- Allowed the communists to win the civil war
- Major famine of 1921
- Caused as the peasants stopped producing grain when they realised it was just going to be taken away plus a drought
- Death of between 1 to 2 million people
- Between 1917 and 1920 over half of the urban population disappeared
- Failed to stop the industrial slump
- Peasants resented the grain requisitioning
- Protested and lead to empire wide uprisings
- Before the Civil War
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