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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.

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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

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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

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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

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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

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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

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