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Created with Fabric.js 1.4.5 Communism Communism was based on the ideas of Marxism developed by Karl Marx The current economy was terribly inefficient. The government invested in new trains and into coal miners who had to fuel these trains, but because they now had more money, the government didn't have enough for others who were starving. Still, the agricultural industry began to recover, but the industrial sector was going much slower. Productivity was low and that meant higher prices. Fortunately, the government cut spending so it could properly pay the people and life slowly improved. The Soviet economy was the 2nd largest in the world now but living conditions did not improve. Stalin and the NEP Society could not be equal as long the upper class benefited from the work of the lower class. The poor must overthrow the rich by force and create equality. VS The NEP combined Socialism and Capitalism. Foreign investment was encouraged, small businesses were allowed, you could own land, and could trade with others. Higher skillwould actually mean higher wages. Lenin and the NEP Stalin appeared to support the NEP but this was an act to gain more political support. After he gained power he declared that the NEP was too slow and leave them further behind the west which would then invade the Soviet Union. During the NEP, half of the economy came from private businesses. Lesson After coming into power, Lenin signed the Brest-Litvosk peace treaty with Germany because he saw Germany as a threat to communism and war as something from capitalism. Unfortunately the war already had its toll and the country was in bad shape. To get the country to a point where communism could be implemented Lenin created the New Economic Policy (NEP). Communism didn't work. Resources were being used up but progress and growth wasn't happening. This led to more imports over time and the eventual collapse of the already corrupt Soviet Union. To this day there is support for communism in Russia and the economy is still fragile. Additionally, the fall of the Soviet Union meant the capitalist USA had won the title of largest global power. Not only that but it was a lesson to other Communist regimes like China, that full Communism does not work on a practical level, and you need some capitalist aspects to keepgrowing the economy. The new socity would have eqaulity, respect, no private ownership, and free public services Many workers were paid in food rather than moneybecause inflation was very high Growth is limited in a communist system so people were not seeing much change. If someone was successful they would be seen as a Kulak and punished by the government. At the same time people were encouraged to work hard.
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