The NEP Flashcards
What happened to unemployment
It was high among workers
What happened to wages and consumer goods?
Wages could not keep up with rising prices of consumer goods creting poverty
Why were there food shortages?
They could not buy much with their money so they stopped selling food
What was the scissor crisis and why did it happen?
This was when the price of agricultural machinery increased but the price of food decreased because of supply and demand. This made it almost impossible for peasants to replace machinery when it broke which caused them to hold onto grain. Lenin fixed this by decreasing the price of machinery and taxing peasants to get them to sell more to pay the taxes.
Key features
- Reintroduction of private trade
- End of grain requisitioning/ rationing
- Small scale industries were not nationalised
- Large scale industries remained state controlled
Did it lead to rapid industrial growth?
No. This was one of its main aims
Did it lead to political and economic stability?
Yes
Did it lead to industrial growth?
Yes.
