Why did Lenin introduce the NEP?
After kronstadt rebellion he decided Russia needed a new policy to avoid his government being overthrown.
Noticed how unpopular war communism was.
What was the NEP?
War communism was relaxed
Smaller industries and facrories were returned to private ownership
What was produced, was sold on the open market
Grain was no longer seized from peasants
Started taxing products instead
Important industries stayed in state control
Why did it encourage increased production?
It allowed private businesses to keep their own profit
So the more they produce, the more money they get
Why did some oppose it?
They thought that returning the idea of profit to trade and businesses was against communist principles (extreme communists)
Felt it was taking a step back and allowing people to get rich again
Labourers wer being exploited
In what ways was it successful?
Factories and peasants responded to the change by increasing their production
marked by 7 years of relative stability
Output increased within the 7 years
What problems did it create?
Some peasants became rich at the expense of others who often hired labourer.
Trade+ Business men 'Nepmen' made profits by buying goods + food cheaply and selling them for more