1. Aim: Summarize Stalin’s State-Controlled Economic Programs

2. Stalin Seizes Control of the Economy
Stalin was setting plans in motion to overhaul the economy
1928: Stalin’s plans called for a command economy
System in which the government made all economic decisions
Under this system, political leaders identify the country’s economic needs & determine how to fulfill them 2

3. An Industrial Revolution
Stalin outlined the first of several Five-Year Plans for the development of the Soviet Union’s economy
Set impossibly high quotas, or numerical goals to increase the output of steel, coal, oil, & electricity
Government limited production of consumer goods
Result, people faced severe shortages of housing, food, & clothing
Stalin’s tough methods produced impressive economic results
: Industrial production increased more than 25% 3

4. An Agricultural Revolution
1928: Government began to seize over 25 million privately owned farms in the USSR
Combined them into large, government owned farms
Called Collective Farms
Hundreds of families worked on these farms called Collectives
Produced food for the state
Peasants actively fought the government’s attempt to take their land
Many killed livestock & destroyed crops in protest
Between 5-10 million peasants died as a direct result of Stalin’s agricultural revolution 4