The Rise and Fall of Communism: From Revolution to Stalinist Terror
The Expansion of the Communist Revolution
Lenin and Trotsky believed that the Soviet revolution needed to spread to other countries to be consolidated. A key attempt was the revolutionary uprising in Germany in 1919, aiming to establish a communist regime. However, the army quashed this attempt. That same year, a revolution in Hungary briefly installed a communist system under Béla Kun. Communist parties were established across Europe, but a socialist revolution seemed distant.
Lenin’s Death and the Power Struggle
Lenin’s death in 1924 triggered a power struggle within the Bolshevik Party, known as the Great Debate (1924-1928). This debate primarily involved Trotsky and Stalin, but also figures like Kamenev, Zinoviev, Bukharin, and Lunacharski. Trotsky and his allies, representing the radical wing, advocated abandoning the New Economic Policy (NEP) to advance the socialist revolution. Stalin and other more conservative leaders disagreed. By 1927, Stalin consolidated power, establishing an authoritarian, centralized regime that eliminated democratic participation. He ended the mixed economy, enforced collectivization, and persecuted dissenters, ultimately establishing a dictatorship based on his absolute control.
Stalin’s Consolidation of Power
Stalin’s system prioritized communist ideology, transforming the Communist Party into a monolithic entity demanding absolute obedience. He established a personal dictatorship, using the party and state apparatus to persecute and eliminate any opposition. A new privileged class, the nomenclature, emerged, comprising economic planners, managers, and party leaders with access to exclusive privileges. Socialist thought became dogma centered around Stalin’s personality cult. Rigid state censorship was imposed, with socialist realism becoming the official art form, suppressing avant-garde movements.
Collectivization, Planning, and the Economy
Stalin aimed to create a society without private ownership, with the state controlling all financial means through rigid five-year plans developed by Gosplan. The goals were to industrialize the USSR and collectivize agriculture. The first five-year plan (1929-1933) collectivized property, transport, and finance, socializing industry and abolishing the market economy. Mass collectivization of agriculture began in 1929, leading to the elimination of the kulaks (wealthy peasants). Capital for industrial growth was diverted from agriculture, creating inequality between urban and rural areas. Planning failures led to food shortages. Prioritizing heavy industry resulted in consumer goods shortages, hindering improvements in the standard of living. Despite these issues, industrial production, particularly in heavy industry and energy, grew significantly.
Stalinist Terror
Stalin’s dictatorship intensified, with widespread purges in the 1930s. Old party leaders, military personnel, and others were persecuted for fabricated crimes against the state. The infamous Moscow Trials (1936-1938), based on false accusations and forced confessions, eliminated potential opposition. The Gulag system of labor camps in remote areas imprisoned vast numbers of people.
The New Political Institutions
The new Constitution maintained the Soviets as the foundation of the political system, but they became state-controlled entities. Elections were controlled by the Communist Party, undermining democratic representation. Freedom of expression was limited to non-criticism of the socialist system. The Supreme Soviet remained the deliberative body, headed by the Presidium. The government consisted of commissioners subordinate to Stalin. Local power was exercised by local Soviets. While the USSR maintained a federal structure, the central government held significant control, suppressing any national autonomy.
Immediate Effects of World War I
World War I weakened European powers, impacting populations, production, and international cooperation. By November 1918, nearly a tenth of Europe’s productive capacity was destroyed. Prices rose, currencies deflated, and Allied countries faced significant debt to the U.S. Peace treaties created economic disagreements, destabilizing the international monetary system. Germany, burdened with reparations, struggled to recover. Disagreements between former allies, particularly regarding war debts and reparations, further weakened European economies.
Trade Imbalances
New borders and trade flows disrupted access to raw materials, particularly for Germany. Trade imbalances emerged between industrialized and exporting countries. Production recovery led to surpluses of food and raw materials, causing agricultural prices to decline. Importing countries struggled to pay debts and sought new credit.
The Rise of the American Economy
The war solidified U.S. economic dominance. While the pound remained a key currency, the dollar, backed by gold, gained prominence. U.S. banks became dynamic lenders, and the U.S. replaced the UK as the leading global investor. Trade imbalances favored the U.S., and its economy became crucial for European reconstruction.
The American Prosperity
The U.S. became a major supplier of capital goods, accelerating industrial growth and transforming its economy. Expanding into new markets, the U.S. experienced a growing trade surplus. Technical innovation and changes in work organization fueled economic expansion. New industries emerged, and consumer goods like telephones, automobiles, and appliances became widespread. Mass production techniques, particularly in the automobile industry, boosted productivity and employment. However, corporate profits and dividends outpaced wage growth, leading to rising household debt and eventually overproduction, particularly in agriculture.
Stock Market Fever
By 1925, corporate profits fueled speculation in the stock market. Share prices rose based on investor optimism and the belief that buying early guaranteed profits. This speculative bubble drew in small investors, many borrowing to buy stocks. As long as prices rose, loans could be repaid. However, the focus shifted from company performance to speculative gains. The decline in stock values beginning in 1929 marked the start of the Great Depression.