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How Did The Economy Affect The Russian Economy

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Russian economy post-WWII from the people's perspective was extremely poor due to the impoverished state of most of the population. Even though most of us weren’t alive during this era of time it still happened and people still went into war. Some of the things that affected Soviet economy were the Five Year Plans and the Eastern Bloc; these things changed and rebuilt Russia's economy.
Five-year plans focused on the heavy industry which caused the creation of Shortage economies due to a lack of important resources including food. These plans ordered a specific amount of materials whether or not there was a market for these goods. This led to situations such as the time a hospital in Warsaw sat empty for four years while waiting for the equipment to be produced. The government propagandists still boasted of having completed a hospital even if it was just a hollow shell. Another of the side effects of the imbalances in the economy is the creation of extensive black markets.
The Eastern Bloc followed the Five Year Plans by Stalin. These countries relied on loans from the west …show more content…

The USSR had the largest output natural resources contributing to its large economy. Much of the growth in GDP came from the acquired territories post-WWII. The USSR was the second largest economy for most of the Cold War until 1988 when Japan passed it. The Soviet Economy relied mostly on oil and natural gas. In 1965, the Soviet Union went under an economic reform. The economic reform of the Soviet Union came with a change in leadership. The main effect of the reform was the redesign of the profit system in the USSR. The Soviets created collective farms making the USSR output the largest amount of agricultural goods such as cereal. The trading of goods using foreign currencies was illegal until the 1980s’. The industrial output compared to the United States was 55% in 1960 but in 1980 it grew to

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From 1928, when the plan started, to 1932 to its end, many factories, dams, power stations and even cities were being built. Despite there being harsh penalties implemented to workers for failure to meet their targets, there was still a significant increase in Russia’s industrial growth in a very short period of time. Just like the emancipation of the serfs in 1861, under Tsar Alexander II, in protest of Stalin’s policies, the peasants, in protest, refused to work harder than they needed too, causing them to destroy livestock and crops, which eventually lead to their unnecessary death. Stalin, just like the Tsarist autocratic regime, was not committed to collectivism but preferred capitalism in his ruling of the Soviet Union. This caused a lot of rebellion from the Kulaks who opposed collectivism.

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According to Doc. 4, the USSR produced 35.4 million tons of coal, 11.7 million tons of oil, 3.3 million tons of iron, and 4 million tons of steel in 1927. With Stalin in office, these numbers increased greatly in 1932. According to the Background Doc., “Stalin implemented collectivization which combined all of the agricultural farms into large state-owned farms and forced the peasants to work on them,

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This was similar to the United States of America, as the US was also trying to industrialize with a purpose of factories and people working in them. A big factor of the industrialization that both America and Russia shared was that both of these countries had a very unfair system for workers. The pay was not great, and people who were poor had it even worse. There is even an old saying that fits this very well, “The rich get richer”. This is true because the people who were already poor, who were working for the money so they could afford things like homes, food, water, and clothing, were staying poor, because their pay was so low that at the rate of them using their money for necessities, they were earning barely enough to afford them.

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The Five-Year Plans were a series of goals which each took five years to complete, that were aimed at quickly improving the economy and industrialisation of the USSR so that it could compete with Western Capitalist countries. According to Stalin in a speech on 7 January 1933, the first Five Year Plan was a great success in terms of its outputs, and furthermore because the working class was able to complete the first Plan ahead of schedule in only four years16(Source B).The Plan was successful in creating an iron and steel industry, a tractor industry, a machine-tool industry, a chemical industry, an agricultural machinery industry and an aircraft industry16(Source B). In addition, the USSR now ranked among the first for electricity, oil products and coal outputs in the world16(Source B).In another speech delivered by Stalin in April 1928, Stalin discusses the modernisation of agriculture and puts forward his idea of Collectivization to increase agricultural outputs for the USSR17(Source C). Stalin knew that agricultural production and development was very slow, and was thus negatively affecting the country’s economy17(Source C). Stalin blamed this slow development on the fact that the USSR still had an “insecure” and “primitive” system of economy because of

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