J.W. Rich outlines the economic and humanitarian disaster of Soviet “War Communism” that eventually forced Lenin to bring back some limited elements of capitalism to save the country:
In 1917, the Bolsheviks seized power in Moscow after the deposition of the democratic provisional government which had replaced the Tsar. However, the Bolsheviks’ hold on power was far from secure. There was little affection anywhere for the Tsar, but there was no agreement on what form of government should replace the monarchy. Bolshevism had been on the rise for years, but ideas of democracy and liberalism were gaining popularity as well. Shortly after the 1917 revolution, the Russian Civil War broke out between the Reds, the Bolsheviks, and the Whites, a coalition of anti-Bolsheviks that were generally democratic.
Through the course of the civil war, the Bolsheviks gained more power and control over increasingly large amounts of Russia. With this control, they began to implement their Marxist economic ideas into reality. On January 28, 1918, it was decreed that all factories should be directed by state-appointed managers. In effect, this amounted to a near-complete nationalization of industry. In one fell swoop, the vast majority of the production of Russia’s consumer goods was now under the purview and direction of the state.
On May 9, 1918, a grain monopoly was announced over grain production in the country. All grain harvested across the country was now the property of the state. This was extended even further when a general food levy was announced in January 1919. Any and all food was now the property of the state. In addition, local farm authorities were no longer allowed to set the levy based on harvest estimates. In essence, the state would take however much it wanted from the peasants without any concern if they had enough food to feed themselves and their families.
It was at this point that large-scale forced rationing was introduced. Money was made worthless overnight as ration cards were mandated to the entire population. No longer could you buy whatever you wished with the money you had. The goods allocated for you were predetermined on your ration card.
By late 1920, going into 1921, the Russian Civil War was all but over. The Whites had been soundly defeated by the Reds, giving the Bolsheviks control of nearly the entirety of the country. However, despite the victory in the Civil War, the economy at home was beginning to fall apart. Industrial production was at 20% of pre-war levels by 1920. As a result of this lagging production, there were few goods in the cities available. This resulted in a flight from the cities to the countryside. From 1918 to 1920, eight million people emigrated from the cities to the villages, where there was better hope of finding food or some goods. In Moscow and Petrograd, the population declined by 58.2%
The agricultural situation was not much better. Sheldon Richman records that from 1909-1913, gross agricultural output averaged 69 million tons. By 1921, it was just 31 million. From 1909-1913, sown area was over 224 million acres. In 1921, only 158 million acres were sown. This lack of food resulted in a mass loss of population. From 1917 to 1922, the entire population declined by 16 million, not counting immigration and deaths from the civil war.
War Communism was now fully implemented and the Marxist aspirations of Lenin and the Bolsheviks were now fulfilled. For the people that had to live under War Communism, however, the conditions had become intolerable. In February 1921, labor strikes began to emerge all over Russia. With the end of the civil war and living standards continuing to fall, resistance to the Bolsheviks began to spread throughout the country. Moscow was the first city to strike, with other large cities, such as Petrograd, following. The protestors demanded an end to War Communism and a restoration of private enterprise and civil liberties, such as the freedom of speech and assembly.
The protests escalated when the Kronstadt Naval Base mutinied against the government. Once a bastion of Bolshevik support and fervor, the sailors joined with the laborers in demanding reform and change. A force led by Trotsky was dispatched to deal with the mutiny, but Lenin knew that change was needed. The writing was on the wall for War Communism.
