Stalin: Nep and the First Five Year Plan

3321 Words Feb 11th, 2007 14 Pages
Before the nation of Russia became the international powerhouse that we knew as the USSR, it was first the small backwater country, whose economy ran on the use of serfs, Czar 's ruled every aspect, and the chance of growth was limited; however, once the year 1917 came along, the entire aspect of what was to be the Russia nation changed into a very strange and new one, called the United of Soviet Socialist Republics. The Soviet Union was, at one point, second only to the United States of America and had the power to destroy the entire planet with the single acknowledgement of their leader, because of their nuclear capabilities and their political power. The Russian country became the great Communist powerhouse after a great revolution in …show more content…
After the experiment with the New Economic Policy was tested for almost seven years, it was decided that it would be ended, due to the ever growing need for faster and better development of the Soviet economy, technology and industrialization. The NEP was primarily used to bring the nation out of a deep economic and social trough, which had killed millions of people, because of famines and revolts. While the Marxist-Communist idea was indeed kept throughout the entire endeavor, capitalism was brought back into the economic side of Russia; it was felt that the NEP would be "Building Socialism with Capitalist Hands" , though the idea of using any form of capitalist ideas or practices would explicitly go against the Marxist, communist and socialist policies, that was the main feeling behind many of the leading Soviets at the time.
As despised as the idea of using Capitalist values in a Communist nation, certain problems incurred the leaders to go even farther away from the policy of the New Economic Policy: the hyper-inflation and the "Scissors Crisis". During the beginning of the new policy, the economy was almost about to collapse and the prices especially those contributing to agriculture, were absurdly high, causing the government to change their money policy to one of a Gold standard, or a chervonets. The new policies on money gave a small reprieve to the ever growing inflation problem, though it also caused difficulties in wage payments at factories,

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