State capitalism

Question 1

When was State Capitalism implemented (kind of)

Answer 1

2nd Dec 1917: Sovnarkom create Supreme Council of the National Economy (Vesenkha), a supervisory dept. to manage and coordinate workers committees (who would over see the B. experts)

Question 2

“State” aspects of State Capitalism?

Answer 2

The govt exercise tight control and ownership over key industries + govt have a monopoly on trade + centralised banking + economy overseen by Vesenkha + Workers’ Control supervises management

Question 3

“Capitalist” aspects of State Capitalism?

Answer 3

Most businesses and industries remain under previous owner control as the “Bourgeoisie experts”. The structure and technique of the free marker remains. No sig change in econ foundations

Question 4

Impacts of State Capitalism:

Answer 4

‘Nationalising From Below’: In Moscow and P’grad for every 1 factory nationalised by govt officially, 4 un-officially seized by workers.

Workers unsustainable pay rises, most lack management skills ∴ production decrease ∴ money > goods in circulation… inflation… peasants start hoarding… P’grad civs living on 50g bread per day… riots.

failures inspire approach of War Communsim.

Question 5

Why was state capitalism implemented?

Answer 5

collapsing economy,
food + fuel shortages
production was in danger of stopping
Bols want to create order and further the rev occuring bc these conditions foster hatred for govt
Belief among ALL Bols: a socialist econ should be created.

Question 6

Why was controversial policy:

Answer 6

debated among the party eg. Bukharin the party theorist wanted an immediate socialist programme and Lenin wanted a “mixed economy”