It was Lenin's intention to save the Russian Socialist economy by introducing some elements of Capitalism. For example, He allowed for members of the peasantry to sell the surplus of their agricultural goods after paying a hefty state tax. The ability to profit off of one's own good gave the peasantry more of an incentive to produce as much as they could. With this new motivation, production of grain went up to level even higher than from before the revolution. Normally this would be considered success. However, because the Soviets had not yet begun to develop their industry, The agricultural market began to rise much faster than that of the industrial. The proletariat, in their attempt to catch up with the agricultural market attempted to sell their factory goods at higher prices, resulting in a dramatic economic imbalance. The peasants could not afford to buy industrial goods because the price of food had dropped so much. Industrial goods had increased 290% while agricultural prices dropped 11%. SHS POUR ARS LOU
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The New Economic Policy (NEP) was intended to reverse some of the economic ravages caused by the previous policy of War Communism had inflicted on the country.
The New Economic Policy
The policy of New Economic policy does help in the improvement of trade and commerce of India but the tariffs seem to be slowing the influx of new products.
The New Economic Policy of India is an opening of India's commerce to the outside world and an allowing of incoming trade items.
Lenin created the NEP in response to the Kronstadt Rising that occurred in March 1921, as these Kronstadt sailors were amongst his greatest supporters, and showed him that he obviously needed to change his policy from War Communism to the New Economic Policy.