The Economy under Lenin Flashcards
What were the problems facing Russia following the revolution?
- Economy backwards and unsophisticated
- Economy still far behind the more developed nations
Karl Marx economy quote
“The increase in value of the world of things is directly proportional to the decrease in value of the human world”
“The increase in value of the world of things is directly proportional to the decrease in value of the human world.” What does this mean?
What was Lenin’s state capitalist economy based on?
Nationalisation of industry
What did the nationalisation of industry end and how?
It ended capitalism by taking industry away from middle-class owners
What was war communism designed to ensure?
- High levels of industrial output of war goods
- Efficient allocation of resources
- Food production to feed soldiers, workers and civilian population
What did Lenin’s food dictatorship’ consist of?
Grain requisitioning:
Cheka seized grain from peasants without payment
Rationing:
Supply Commissariat rationed the seized foods. Largest rations went to workers and soldiers, smallest rations given to members of the bourgeoisie
How did war communism bring about labour discipline?
- In 1918, working day extended to 11 hours
- In 1918, work was made compulsory to all people who were able
- Harsh punishments given to people who were late or caught slacking
What measures were introduced to try abolish the market:
Abolition of money:
More money printed which led to hyperinflation
Abolition of trade:
Private trade made illegal
Complete nationalisation:
All businesses taken over by state
Conscription:
Workers assigned to either work or fight in the army
What were the consequences of war communism?
- Kept the Red Army supplied and won civil war
- Led to economic collapse
- Failed to abolish market
What did grain requisitioning lead to?
Lower rates of agricultural production
How did grain requisitioning lead to lower rates of agricultural production?
- Peasants not paid for their grain or labour. Therefore, the peasants had no incentive to work
Industrial production declined:
- Too few incentives to work.
- Hunger led to workers leaving the cities and seeking work on farms (there was a greater chance of being fed)
Total workforce declined from ___ million workers in 1917 to ___ million in 1922
3
1.2
Growth of a black market during the Russian Civil War. Lenin’s economic controls failed to abolish the market - what shows this?
Historians estimate that only 40% of the food consumed in Russia’s cities came from rationing of food during the Civil War
What did mass starvation deepen?
The economic crisis, leading to a political crisis
