New Economic Policy:

• Lenin permitted small private businesses to operate for a profit
• Farmers could openly sell produce
• Nationalization:
  Government control: banks, mines, heavy industry
• Good harvest/improved market and famine ended
• Agricultural/coal production increased

Politburo Power Struggle: Left vs. Right

• Lenin permitted small private businesses to operate for a profit
• Trotsky (left): End NEP; industrialize rapidly; spread communism
• Stalin (right): Continue NEP; industrialization=harm to peasants;
  "Socialism at home"
• Stalin: Party General Secretary made appointments (loyalty)
• Trotsky expelled/exiled; old Bolsheviks eliminated from Politburo

• Industrial Transformation:
  Capital goods=production of other goods/fewer consumer goods
• Results: massive increases in oil/coal/steel/heavy machinery
• Costs: Poor housing conditions/low wages/strict laws/sacrifice
• Collectivization: government-owned land farmed by the peasants

The Great Purges:

• Party dissent led to Siberian exile (gulags)
  Old Bolsheviks put on trial and sentenced to death
• Army officers purged out of military (prior to WWII)
  Approximately 8 million Russians arrested