NEP

Subdecks (1)

Cards (13)

  • small businesses were allowed to operate so were allowed to produce consumer goods as they had realised that the state had neglected private consumer goods for state industries
  • money was re-introduced as rationing and trade was proving to be too inefficient and time consuming. allowed entrepreneurs to buy and sell
  • state kept control of big industries like steel, coal and banking but these now had to operate within budgets and set targets
  • Nepmen
    A) sell foodstuffs at a profit in cities
    B) buy simple manufactured goods in cities
    C) take to a country and sell at a profit to peasants
    D) scoured villages buying up all produce
  • the NEP was successful which annoyed the communists
    • there was a general revival in economy
    • production of most goods reached pre-war levels
    • production doubled between 1920 and 1923
    • small businesses recovered faster than heavy industry which was controlled by the government
    • unemployment increased in urban areas as workers were laid off
  • the incentive to work returned as there were products to buy again meaning more reason to work, buy, sell or trade
  • Nepmen controlled 75% of trade by 1925