Economic Problems

• Food shortages, unemployment and high prices had remained since Feb Rev.

  • downward spiral continued, affected the workers and thus railway system which was already under pressure from the war
• Shortages of fuel and raw materials led to factories cutting output and closing down

  • 568 factories in Petrograd closed between Feb and July
  • loss of 100,000 jobs
  • scarcity of goods = high prices
• Food shortages

  • 1917 Harvest was poor
  • In August, the govt increased the price it paid for grain by 100% but did not persuade the peasants to bring grain to the cities
  • unwilling cause the grain was worth more than the money needed to buy goods
  • Petrograd, grain prices doubled between Feb and June
• Punishment squads were sent to countryside to get them to hand over their grain

  • = hostility from peasants
• Workers highly discontented because they expected an increase in wages, shorter working hours and better conditions

  • but employers did not meet this
• War contributed as resources had to be funnelled to war effort