lenin wanted to replace the capatalist economic system with communism.
- 2nd december - lenin creates the supreme council of national economy to control russia's economy
- 14th december - army took over all the banks putting them in communist control
- 21st january - lenin declares foreign debts incurred by the tsar - won't pay them.
- during december workers took control of factories setting own hours - production fell
the economy was working on a barter system with black markets being established for products not available this lasted till the break out of the civil war
war communism established :
- supreme economic council
- decree on nationalisation ( meant goverment could nationalise any buisness, from 1920 37,000 buisnesses where nationalised )
- private trade banned
- grain surpluses seized
- decline in money ( even completely gone for a while) people given rations
- terror used to force slave labour
the goverment found it difficult to completly wipe out the free market - black market flourished.commisariat of supplies gave ration based on workers out put.
war communism allowed the communists to win the civil war with the whites
- great loss of life
- 1917 - 1920 over half urban population dissapeared
- majour famine in 1921 (partly from war,partly from war communism partly because peasents stopped producing as much grain for it to be taken) between 1 and 2 million died
- people died through the war
- lead to peasent uprisings - tambou province
- production levels still low
at the tenth party congress lenin reappraised war communism and ending it for it to be replaced with the NEP