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Stalin scrapped Lenin's New Economic Policy, eliminating all aspects of capitalism that the NEP permitted, especially the private ownership of small businesses and farms. Now the entire economy would be a planned economy subject to control of the government. He then instituted a series of "Five Year Plans," which were designed to rapidly increase the industrial and agricultural output of the economy. Industrial capacity increased tremendously, but it cost hundreds of thousands of lives, because the government confiscated large amounts of grain from the peasant farmers, which it sold to other nations in order to raise money it needed to buy raw materials and machinery to build as many factories in so short a period of time as it did.

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9y ago
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10y ago

People faced severe shortages of housing, food, clothing, and other necessary goods.

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12y ago

It fell even further behind the economy of the united states

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12y ago

trevasry

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Q: How did the soviet economy chage under the direction of Stalin?
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