History 127CGetty2012 FallWeek 3Lecture 7October 18Announcements- Midterm exam is this, Thursday, October 25- Read Chapter 4 (Kenez) - Start Koestler readingOutline of Last Lecture I. The Party: After the RevolutionII. The Party: OrganizationIII. Lenin was the PartyIV. Trotsky on the PartyV. Stalin on the Party Outline of Today’s Lecture I. Midterm InformationII. Trotsky and Stalin on the PartyIII. “Scissors Crisis”IV. How to Close the Scissors?V. NEP Problems: 1927VI. “Extraordinary Measures”VII. Bukharin / The “Right Opposition”VIII. Stalin vs. BukharinIX. Lenin and Trotsky: “permanent revolution”X. 1920sXI. 1929XII. 1930Today’s LectureMidterm Information- Must bring blue book and pen- You will choose and write on two out of three essays that will appear on the exam- In class midterm – 3:30-4:45pm- Organize your essay thematicallyA. Don’t write in chronology- Take the question, figure out exactly what it asks for  structure your essay dealing with topicsA. Ex: Topic  here’s what I have to say about it  supporting evidence- Don’t fill up two blue books  excessive These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.- Structure  Make an outline  make it topical  include justifications- Sample Questions / ThemesA. How and why did the Bolsheviks come to power in 1917?B. How and why did Stalin become #1 after Lenin’s death?Trotsky and Stalin on the Party- Trotsky deployed a number of measures and arguments against Trotsky - Stalin used whispers about anti-Semitism, open arguments against Trotsky’s points, patronage power (awarded his friends, punished his enemies), etc to have Trotsky fired from the Army- The political fighting of the 1920s does not end- Trotsky v. Stalin was about politics- Trotsky v. Stalin also contained a huge economic issue  the “Scissors Crisis”The "Scissors Crisis”- Slow industrial growthA. = High prices for goodsB. Industrial goods are expensive- Low prices for grain, foodA. Peasants had been given the land in 1921 and they did really well with it  produced a lot of grain, no food shortageB. If there is a lot of grain, the price in grain is lowered consequentiallyC. High industrial prices, low grain prices; difference between those two is called the Scissorsi. Top part of the graph – industrial prices over time (getting higher)ii. Agricultural prices is not keeping up with the industrial pricesiii. The difference between industrial and grain prices is how much the peasants are being screwed because peasants are sellers of grain and buyers of industrial productsD. - Difference = peasants squeezed E. Unfavorable market for peasantsF. Political + Economic problem i. Politically problematic because If the peasants think that the government is ripping them off  peasant uprisingG. Politically angry H. Timeframe – 1921-1929I. How to close the scissors? What kind of economic policies is going to do that?i. Debate between the left (Trotsky) and the right party (Bukharin)How to Close the Scissors?- A matter of how to distribute wealth and resources- Left –TrotskyA. Pay peasants low prices and use the extras to build more factories and to fund and expand industryB. The state (Bolshevik state) is the largest consumer on the grain market feed the army, city and to export grainC. The state has the power to close the scissors according to BolshevikD. Trotsky says they will close the scissors by bringing the top downi. More industrialization  More goods  cheaper industrial prices  scissors closed from the topE. Squeeze agriculture for industryF. Tax the peasants heavilyG. Workers will advantage from expanding jobs in the industryH. Bread prices go down  workers happyI. From a Marxist point of view  industrialization, high tech is keyJ. Rely on workers, the social group we want to support us K. Faster industrial growth, at whatever risk or cost, is key because we need more factories + because Marxism stresses industrialization to get to hi-tech and then to socialism - Right – Bukharin:A. Advocate of gradualismA. Big fan of the New Economic PolicyB. Bukharin says they will close the scissors from the bottomi. Pay peasants higher prices for their grain  increase their income  bottom part of the scissors will come up  make peasants well to-do consumers  industrialization will followC. Encourage peasant productionD. Wants to enrich the peasantsE. Tax the peasants lightly F. Keep peasants loyaltyG. If we provoke the peasants  massive peasant uprising will overthrow the regimeH. Slower industrial growth I. Rely on a mixed marketJ. Factories will happen if there is wealth and peasants have their own money- Stalin A. Not big on economicsA. Never totally understood economics, but he understood politics and he understood riskB. The majority of the time he supported Bukharin because he dislike for Trotsky, previous argumentsC. Almost always a low-risk kind of guy, does not want to risk a peasant revoltD. Advocates for the continuation of the New Economic Policy, to allow the peasants to become wealthy, do not alter the peasant economy, rely on the free market, keep taxes low for the peasantsNEP Problems: 1927- Grain supply problemsA. Low grain pricesB. The government was the biggest buyer of grainC. How can there be a grain shortage? Peasants playing the market?D. The regime, the politburo, thinks that there is a large grain supply, yet, for some reasons, the state is paying more and more for grain instead of less and less  grain prices are increasingi. Peasants are playing the market  artificial grain shortageii. Peasants are deliberately withholding grain from the market- Industry expanding slowly despite expectations A. The state has very low capital reservesi. Not a lot of cash to build factories ii. The Bolshevik dream for socialism continuously is getting postponed because of the lack of industryB. Unemploymenti. More people are looking for jobs in the city in industryii. For the first time, in 1927, too many people chasing too few jobs iii. Worst political nightmare for the Bolsheviks iv. Regime risks alienating the working class  problematic because the working class has to be the primary support group for the BolsheviksC. High grain prices, High bread prices – most Russians eat bread all the time i. The urban population and the army are major consumers of