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the
bolsheviks?uncompromising and ruthless treatment of all opposition
to their policies, such as the drive to 揺xpropriate the
expropriators,?had made a civil war in russia almost inevitable. in
the civil war of 1918?0 the regime routed the remaining merchants
and capitalists. only during the new economic policy (nep) retreat
(1921?8) was some capitalism allowed, with private retail trade and
a land-owning peasantry selling grain on an open market. but the nep
was a brief interlude, during which the state still regulated the
economy and ran large-scale industry. |

in
the early 1930s the soviet authorities liquidated the capitalists as
a class, drove peasants forcibly onto large state and collective
farms, eliminated rural kulaks (well-to-do peasants), and
nationalized over 97 percent of all the means of production. by the
late 1930s, in its essentials, the soviet economy already operated
on the same principles on which it would function until the collapse
of the ussr in 1991. these included
-
virtually complete state ownership of the means of production
-
severe curtailment of money-commodity relations (but not their
total eradication envisaged in the communist doctrine: money
retained its use as a measure of exchange, financial accounting,
and remuneration of labor)
-
distortion of the law of value (prices were determined not on
the basis of the market supply and demand but by bureaucrats at
their office desks)
-
extremely rigid centralization of economic planning and
management with minimal economic decision-making powers left for
republics and regions
-
administrative distribution of resources and commodities
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