5000 years in the world: New Economic Policy

A young American came to the Kremlin, and people on the road stared at him in amazement. Soon people learned that he was Armand Hammer, an American businessman who was warmly invited by Lenin.

At the age of 23, Hamer was a unique self-made millionaire attending Columbia Medical School. In June 1921, he overcame various difficulties and came to Soviet Russia. He originally wanted to help treat typhus, which was prevalent at that time, but he was greatly shocked by the disaster caused by the large-scale famine. He immediately bought 1 million poods of wheat for 1 million U.S. dollars and shipped them to Soviet Russia for sale.

When Lenin knew about this, he warmly invited Hammer to come. In the office, Lenin talked with Hammer in English, and he asked Hammer about his impression of traveling in Soviet Russia. Hammer told him that he had just spent a month in the famine region and the Urals. When Lenin heard this, his face showed a melancholy expression, and he said slowly: "Yes, famine. I heard that you originally wanted to do some medical relief work. Of course this kind of work is very necessary, but what we need most are American businessmen. What is needed is the capital and technology of the United States." Lenin picked up a copy of "Scientific American" magazine from the table, flipped through it, and said: "Look! This is the achievement of your people. This is the meaning of progress. , high-rise buildings, inventions, and development of machinery to replace human hands." He put down the magazine, "We are a backward country with rich and untapped resources. You and we can learn from each other. The United States can find raw materials and markets for selling machines here , we can sell industrial products here in the future, and we need American technology and methods, as well as American engineers and technicians.”

Hamer talked about his impression of visiting the Ural region, and believed that Russia’s materials and manpower were Plenty, many factories are in better shape than he expected. Lenin nodded. "Yes, the civil war brought everything to a standstill, and now we have to start from scratch. The New Economic Policy we have just formulated is to rediscover our economic potential. We hope to establish a system of commercial and industrial leaseholds for foreigners to accelerate Our economy is developing. It will provide you with great opportunities."

Hammer listened to Lenin talk about the New Economic Policy with great interest.

After the victory of the October Revolution, Soviet Russia became the first socialist country in the world. The imperialist powers were terrified. Britain, France, the United States, Japan, and Germany, which were engaged in the First World War, all sent troops to invade Soviet Russia and carry out direct armed intervention; socialist regime. Under such extremely difficult conditions, the Bolsheviks and the Soviet government led the people. After nearly three years of bloody struggle, in October 1920, they finally defeated the armed forces at home and abroad, smashed the enemy's conspiracy, and achieved a decisive victory.

However, the new regime is facing a more difficult task, that is, to manage the huge damage left by the war.hurt. The famine became a disaster in vast rural areas, and the peasants urgently needed the Soviet government to help them economically, asking the cities to supply them with cloth, boots, nails, plows and other industrial products, and asking for a better life. Years of wars have also caused industrial decline. Thousands of factories are half-destroyed, and most of the equipment is dilapidated like scrap steel. Most locomotives and carriages have been used beyond the deadline; some workers lost their jobs and fled to the countryside.

5000 years in the world: New Economic Policy

Internationally, the capitalist countries united to impose an economic blockade on Soviet Russia, and secretly organized bandit gangs and rich peasant riots, always ready to carry out subversive activities.

Facing the grim situation, Lenin realized that the party and the government must make a major change. The focus of the struggle must gradually shift to the economic aspect. On the basis of improving agriculture, to restore industry, machinery and goods must be supplied to the countryside, economically strengthening the alliance of workers and peasants; to restore industry on the basis of electrification of the country.

In March 1921, the Fourth Congress of the Bolsheviks passed a resolution on the New Economic Policy. The New Economic Policy replaces food collection with taxation, allows farmers to sell their surplus grain freely, allows private businessmen to trade freely, returns some small factories to private individuals, and plans to lease some enterprises to foreign capitalists, etc.

While these policies were opposed by some, it is clear that they have played a huge role in restoring the economy.

Hammer got a lot of inspiration from the conversation with Lenin. Not long after, Hamer became the first American to operate a rental business in Soviet Russia. He also persuaded Henry Ford, a big capitalist who was resolutely anti-communist, to start a business in Russia and distribute cars and tractors, so other companies flocked to Russia. Later, Ford also built a car factory in Russia. Although Ford had always been an enemy of Bolshevism, he was quite satisfied with this deal. Because the new economic policy of the Soviet government ensured that foreign businessmen would be profitable and earn money, and it also enabled Soviet Russia to break through the economic blockade of capitalist countries.

The new economic policy made the economy of the Soviet country recover smoothly and entered the period of socialist construction. In December 1922, the first Soviet Congress was held, announcing the establishment of the Union of Soviet Socialist Republics (referred to as the Soviet Union) and formulating the first constitution. The first socialist country has finally gained a firm foothold in the world.

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