The Rise of DictatorsComparing Economic Plans

J. Marshall, 2009

Russia in 1921

Under Lenin, Russia was suffering at the end ofthe Civil War:

– Devastated land, farms ruined, food supplies exhausted

– Drought and effects of war led to famine– 50-90% of people starving– Industrial production broke down completely– Bolsheviks destroyed the economy with their

enemies– Riots / open rebellion

Lenin’s NEP• Re-established limited economic freedom in

an attempt to rebuild agriculture and small industry

• Heavy industry remained nationalized• It proved shrewd and successful politically

and economically• Compromised with peasants to speed

recovery• Returned to pre-WWI levels• Compromise with capitalism, small private

operations, profit,• Remember Kulaks • Created internal political conflict

“From the NEP Russia will (be)come the Socialist Russia”1921

Stalin• Ends NEP• “Socialism in one country” - no world

revolution, internal focus• Soviet industry 50-100 years behind

• 5-Year Plans (revolution from above)– Build strong base of heavy industry– Self-sufficiency– Modern infrastructure– Generate new attitudes, loyalties, and new socialist

identity– 250% increase in industrial output

• GOSPLAN - oversaw implementation

Stalin• Eliminate private enterprise and

capitalism, private ownership (from NEP), and property-owning peasants

• Challenge by Kulaks– Wealthy peasant class

• Collectivization– Agricultural plan to eliminate private ownership of land– Used agricultural funds to help industry– Destroyed Kulaks– By 1932, almost all peasants lived on collective farms, but

at a high cost– Famine resulted as people destroyed crops and

slaughtered animals/Stalin sells grain overseas

Famine, 1933Famine, 1933

Hoarding, 1929Hoarding, 1929

State Farm, 1932State Farm, 1932

Collective FarmCollective Farm

Stalin• Results

– Collectivization brought victory for communist ideologues– Agricuture supplemented industrial growth– Collectivization called “the second serfdom” minimized

power in rural areas– Millions killed or died of famine– Industry produced 4 times as much in 1937 as 1928– Urban migration of more than 25 million– Increased government control of labor and agricutural

workers– Agricultural workers won private plots (22% on 4%)– Avoided economic contraction of the west

MussoliniMussolini• Started out as a revolutionary left-wing journalist

• Verbal assaults on rival socialists win him favor with conservatives

Mussolini• He allowed followers to

believe he was opposing the Reds

• Savior of law and order and property

Mussolini• He allowed followers to

believe he was opposing the Reds

• Savior of law and order and property

Red Rule

Capture all products.

Murder those who enforce the law.

Blow up barracks.

Liberate prisoners.

Burn public records of indebtedness.

Mussolini• He allowed followers to

believe he was opposing the Reds

• Savior of law and order and property

Red Rule

Capture all products.

Murder those who enforce the law.

Blow up barracks.

Liberate prisoners.

Burn public records of indebtedness.

Cult of PersonalityCult of Personality

Mussolini Economics• Mussolini condemned laissez-faire capitalism but also

Marxist appeals to class• Introduced the corporate state--economy run as 22

separate corporations with reps from business, fascist organized labor unions, and the state.

• State interest dictated policy and production priorities• Allowed private property and profit

Mussolini Economics• Mussolini condemned laissez-faire capitalism but also

Marxist appeals to class• Introduced the corporate state--economy run as 22

separate corporations with reps from business, fascist organized labor unions, and the state.

• State interest dictated policy and production priorities• Allowed private property and profit

Mussolini Economics• Mussolini condemned laissez-faire capitalism but also

Marxist appeals to class• Introduced the corporate state--economy run as 22

separate corporations with reps from business, fascist organized labor unions, and the state.

• State interest dictated policy and production priorities• Allowed private property and profit

M

Let the workers feel they have a voice in this top-down administration of the economy.

Hitler

• De-emphasized anti-capitalist elements to win support of middle-class

• Vowed to fight Bolshevism• Germany devastated from WWI, reparations, and

Great Depression• Unemployment at 43% in 1932• He promised Germans economic, political, and

international salvation• Rejected free market capitalism and advocated govt.

programs to bring recovery

Hitler’s Economic Plan• Outlawed strikes• Professional organizations were

swallowed, communications and universities taken over

• He promised economic recovery--work and bread and he delivered

• Public works program to build infrastructure, appointed Schacht as central banker, helped restore credit and business

S

Strength Through Joy

HitlerHitler’’s Economic Plans Economic Plan

• Rearmament• Unemployment dropped from 6 million in

1933 to 1 million in 1936 (shortage of workers by 1938)(shortage of workers by 1938)

• Improved standard of living, business profits rose sharply and recovery was tangible

• 1936: 4-Year Plan– Promote self-sufficiency (autarky) in strategic

commodities– Independent labor unions replaced by National Labor

Front, state-run union– Projects like the autobahn

Leftist newspaper

parody of remilitarization,

1935

Guns or Butter ?

Assignment:

In a mini-essay, compare and contrast the economic policies of Stalin, Mussolini, and Hitler. Be sure to include their philosophical approaches and the outcomes that were realized.

think: Government / Industry / Workers / Population-at-large

End