war communism
- Summer 1918, War Communism:
- Nationalized Industry
- Compulsory labour
- No private trade and peasants had to give their production to the government except their bare essentials
- Some private trade was permitted
- Peasants were alloud to sell their surplus.
- Small factories (co-operatives) were allowed to be in private ownership
In the summer 1918, War Communism was the applying rule. The whole industry was nationalized and all people had to work for the government. Furthermore, there was no private trade allowed and the peasants had to give their whole production to the government.
But after the end of the Civil War in 1921, Lenin realized that the War Communism won´t work anymore. There was no competition in the Russian economy so the afford of the workers was low and the production wasn´t high enough. To increase the competition and so the production of the Russian Economy, Stalin brought in the NEP. Private trade was now partly permitted, peasants were allowed to sell their surplus and small factories were also permitted to be in private ownership.
But after the end of the Civil War in 1921, Lenin realized that the War Communism won´t work anymore. There was no competition in the Russian economy so the afford of the workers was low and the production wasn´t high enough. To increase the competition and so the production of the Russian Economy, Stalin brought in the NEP. Private trade was now partly permitted, peasants were allowed to sell their surplus and small factories were also permitted to be in private ownership.