Russian agriculture was clearly improving. However, these developments were severely disrupted by the First World War. Some historians argued that had war not broken out, Russia could have developed a more stable, loyal and prosperous peasantry. This could suggest that World War I stopped the developments of Russia profoundly, and thus, could be a potential cause of the February Revolution. A lot of workers went on strike for better working conditions, in February 1905, there were 400,000 people striking, however, by the end of 1905, 2.7 million were striking.
Five year plans where policies that would rapidly develop the economy over a five-year period by setting up high production goals for heavy industry, and agriculture. Before launching his first five year plan Stalin said in his speech “we lag behind the advanced countries by fifty to a hundred years. We must make good this distance in ten years. Either we do it, or we shall be crushed.”(Doc.1) Stalin said these words to motivate the people of Russia to participate in his plans. Stalin’s five year plans set goals for farms and factories.
Stalin was trying to push the people so they can be an advanced country. He wanted to make up the difference between the advanced countries and Russia in 10 years. He said, "Either we do it or we will be crushed." Stalin's Five-Year Plans set high production goals for heavy industry and transportation. Other changes Stalin made were to increase production in agriculture by the collectivization policy.
Evidently, Industries like coal steel and iron grew enormously. For instance Coal production in 1928 prior to the five year plan was 36million tonnes, and in 1932 it was 65 million tonnes. Furthermore, Magnitogorsk which was constructed during the first five year plan aided the trebling of steel production during the second year plan. However, the production of crude oil only rose marginally, from 29 million tonnes in 1037 to 31 million tonnes in 1940. Additionally the production of steel stagnated.
Which motives were most decisive? How far were economic problems responsible for Stalin’s decision to replace the New Economic Policy in 1928 with the first Five-Year Plan? There seemed to be various reasons why Stalin decided to replace the New Economic Policy with the first Five-Year Plan in 1928. These included economic problems, the role of ideology, a fear of invasion and political considerations. Although economic problems certainly were an important reason for Stalin’s decision, the most significant reason must have been political, since the consolidation of his power position had always been Stalin’s prime concern.
In spite of all these changing times and circumstances, the tension between the upper and lower classes remained tenser than ever before, building up under the fabric of society. Russian became industrialized during the 1930's when Joseph Stalin instituted a series of what he called “five year plans". The plans were designed to rapidly increase the industrial capacity of the Soviet Union and change it from an agrarian economy to an industrial one. The plans succeeded and Russia did become an industrialized nation. Prior to the “five year plans”, Russia had mostly a peasant farming economy.
An outstanding individual involved in Russia’s development was Sergei Witte. As minister of finance from 1892 to 1903 he set himself the huge task of modernising the Russian economy to compete with the advanced nations of the West. It was Witte’s belief that modernisation could be achieved only through state capitalism. He was impressed by the results of the industrial revolutions in the West, and argued that the same ideas could successfully modernise Russia. However, given the backwardness of the Russian economy particular difficulties were presented.
The first five year plan was inducted between October 1928 and December 1932 and the emphasis was on heavy industries such as coal, oil, iron and steel. The successes included electricity production being trebled, resource output was doubled, the engineering industry was developed with increased overall output of machinery, tools etc and huge new industrial complexes were built that harboured the ground for these ideas and innovations to become a reality. Weaknesses were apparent such as limited growth and even a decline in consumer industries such as house building and food processing. Small workshops were squeezed out partly because of the drive against Nepmen and the shortages of materials and fuel. The collectivisation of agriculture provided Stalin with the idea that further industrial growth was necessary in order to fuel the country’s economy and diminish the burden of Russia’s backwards nature.
At this time people wanted to spend their money instead of save it for hard times. Society’s hourly pay rate nearly double and tripled during this era. War factories transitioned from making war materials to making civilian supplies, which lead to the boost in our economy at the time. Today, effects of the Baby Boom have many factors that come into play that affect our economy. According to National Academy of Social Insurance “social security faces a financial challenge from the impending retirement of the largest generation in American history, the 76 million persons born in the “baby boom” years, from 1946 through 1964.