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Yes, Lenin did allow a limited amount of capitalism in his New Economic Policy. Lenin recognized that the Russian economy was more stagnant than it had been during the Tsarist regime. Agricultural output was down because of his "war communism" policy, which simply prompted peasant farmers to grow less produce and even destroy some crops and livestock. Manufactured goods were also in short supply. Lenin now faced the same shortages that prompted the February Revolution and the overthrow of the Tsar and later the October Revolution and the overthrow of the Provisional Government. He feared his own regime would be overthrown as well, so he re-introduced capitalism in the agricultural field as well as in small businesses in the industrial field. Ironic that Lenin, the communist, had to turn to capitalism in order to save the communist anti-capitalist system.

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Lenin's NEP permitted what he called "petty capitalism" on a temporary basis only. Small companies (ones with about ten or less workers) and all peasant farmers were allowed to operate on a personal profit basis. The major industries were kept under tight government control. Many hard line Bolsheviks felt that Lenin was betraying the spirit of the communist revolution by retreating back into capitalism even though it was to a small degree. Lenin's feeling was it was better to take two steps forward and one back in order to maintain forward progress toward full communism.

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Q: Did Lenin's 'New Economic Policy' permit capitalism?
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