State Capitalism

Question 1

What was State Capitalism?

Answer 1

A halfway house between Capitalism and Socialism. Private Wealth and Free Market Competition were allowed, but the state owned heavy industry, mining, finance etc.

Question 2

Why was State Capitalism introduced?

Answer 2

Because the economic conditions ripe for Socialism required on a heavily industrialised society. So Lenin had industrialise Russia quickly.

Question 3

Why did some Bolsheviks oppose State Capitalism?

Answer 3

They saw it as a retreat to Capitalism; an ideological betrayal. They demanded radical measures such as the abolition of money and the nationalisation of all businesses.

Question 4

What was the Decree on Land in October 1917? How was it an example of State Capitalism?

Answer 4

It abolished the private ownership of land and stated that land passed into the use of those who cultivated it. However it didn’t nationalise the land, it encouraged peasants to grow crops and sell them.

Question 5

What was the Decree on Workers’ Control of Factories in November 1917?

Answer 5

It recognised that workers had seized control of factories and gave them a new obligation to maintain order, discipline and production.

Question 6

Give three examples of Nationalisation which gave the State a high degree of control over the economy

Answer 6

Nationalisation of the Banks Dec 1917
Nationalisation of External Trade June 1918
Nationalisation of the Railways June 1918 + Sep 1918

BER = Banks, External Trade, Railways

Question 7

What was the Veshenka of December 1917?

Answer 7

Set up economic regulations for Russia, it was the Supreme Council of the National Economy.

Question 8

What was GOELRO of 1920?

Answer 8

The distribution of electricity service.

Question 9

How did workers abuse the Decree of Workers’ Control over Factories?

Answer 9

They gave themselves ridiculous pay rises.

Question 10

What was a problem with workers running the factories?

Answer 10

They failed to organise production efficiently because they had no managerial experience, which resulted in a reduction in output.

Question 11

How did the Civil War exacerbate poor production in factories?

Answer 11

There was a shortage of raw materials and a massive disruption to working life due to conscription and general contempt towards the regime.

Question 12

What happened to ‘non-essential’ businesses during State Capitalism?

Answer 12

They were forced to close down due to money being essentially worthless; major inflation.

Question 13

Why did inflation occur during State Capitalism?

Answer 13

Raw materials were in very short supply.

Question 14

Why were peasants unwilling to sell their grain?

Answer 14

Money was basically worthless because there were no consumer goods to purchase, may as well just keep the food because what would you actually spend the money on?

Question 15

Which ways did peasants use to survive the combination of State Capitalism and Civil War?

Answer 15

They ate their livestock, burned wood to stay warm and sold their horses to the military.

Question 16

What was the biggest issue for urban dwellers?

Answer 16

Food supply levels were dangerously low because peasants had reverted to subsistence farming (farming just for themselves, not to trade with cities).

Question 17

Why didn’t Russia just import food from abroad?

Answer 17

Hostile foreign powers had enacted trade blockades.

Question 18

What was the bread ration in Petrograd in early 1918?

Answer 18

Only 50g a day.

Question 19

Which percentage of city food consumption was from the black market? How did black market goods find their way to cities?

Answer 19

66%. Peasant Sackmen (Nepmen) smuggled them in.

Question 20

Between January 1917 and January 1919, how did the urban proletariat number change?

Answer 20

3.6 million went down to 1.4 million.

Question 21

How many people died of starvation or disease alone in the Civil War?

Answer 21

5 million.

Question 22

In 1920, there was a typhus epidemic, how many people died from this?

Answer 22

3 million.

Question 23

Why was there a shortage of doctors?

Answer 23

Bourgeoisie had been targeted through terror or imprisonment or labour duties. Those remaining had been conscripted to work on the front lines of the Civil War.

Question 24

What was the bourgeoisie ration?

Answer 24

They weren’t given ration cards. They begged in the street or bartered what little possessions they had left.

Question 25

Which religion suffered persecution by the Whites?

Answer 25

Judaism. Pogroms against the Jews were common. So were rape and murder.