The NEP and it's political and economic Impact Flashcards
Why did Lenin have to introduce the ‘compromise of 1921’ and what was it?
This was the NEP and this was introduced because the state did not have enough resources to rescue the economy from collapse on its own. The NEP helped create economic stability after the civil war.
Name some of the economic impacts of the NEP.
- got economy moving again
- private businesses quickly re-opened
- small manufacturing establishments and service industries such as shops began to thrive in big cities.
- industrial production recovered
What happened to the kulak class as a result of the introduction of the NEP?
they re-emerged as a class and their villages that co-operated with the NEP received goods.
What happened to food prices in 1923?
an imbalance began to appear in the economy as large quantities of food that entered the cities caused food prices to drop. they had fallen below those of industrial goods because the factories and workers were taken longer to rebuild and expand their output.
What was the scissor crisis and what did this lead the government to do?
this was where the gap between food prices and the price of industrial goods was very large so peasants started to hold back supplies as their was a lack of industrial goods for them to buy. government therefor capped industrial prices and replaced the peasants quotas with money taxes in 1923 which forced them to sell.
who were the Nepmen?
these were private traders and in 1925 there were 25,000 in moscow alone. they were pesponsible for about 75% of trade but hated many bolsheviks.
How could u argue the NEP failed
because they didn’t solve the fundamental problems of the soviet economy which still had many backwards features compared to other countries. however by the time of lenins death the soviet economy was on much better foot.
state some problems with the NEP
- caused splits in the communist party as many Bolsheviks resigned
- allowed elements of capitalism so received lots of criticism
