1. THE RUSSIAN REVOLUTION

2. RUSSIA BEFORE THE USSR Ruled by monarchs (czars or tsars) since 1547 Last czar: Nicholas II (ruled 1894-1917) Why revolt? Poverty and famine WWI  urbanization, poor living conditions, massive loss of life Nicholas II was a poor leader Huge social and economic inequality Brutal state oppression

3. 1917: TWO REVOLUTIONS February Revolution Massive strike by workers Army abandons the Tsar Tsar Nicholas abdicates; later executed Two governments – moderates and Bolsheviks October Revolution Bolshevik Party takes over the government by force Vladimir Lenin becomes head of government Goal: establish a socialist state

4. THE RUSSIAN CIVIL WAR Date: 1918-1921 War for control of Russia between: Reds – Bolshevik Party Whites – moderates and conservatives Foreign powers (including the US) invaded to support the Whites Reds won and established the USSR

5. THE UNION OF SOVIET SOCIALIST REPUBLICS Founded 1922 Russia + 14 other countries Economic structure: communist (state ownership of means of production) Political structure: single-party state (run by the Communist Party)

6. WAIT! WHAT’S COMMUNISM? Old economic system was capitalism – private ownership of the means of production Business produces what consumers want Wealthy minority gets most of the profit New economic system was communism – state ownership of the means of production Much closer to economic equality More power for the state But how to get workers to produce…? Karl Marx and his magnificent beard

7. SIMULATION RULES, ROUND 1: INCOME I’ll give you a starting endowment of pennies You can earn more pennies by playing rock-paper-scissors with other students The loser gives the winner one penny Keep playing until you’re out of pennies Sit down when you’re out of pennies No exchanging pennies, except as the result of rock-paper-scissors games Whoever finishes with the most pennies will earn 5 merits

8. SURPRISE! The Communists have taken power in a revolution led by the charismatic working- class hero Premier Lam. The benevolent Premier Lam has announced a policy of redistributing wealth equally to all members of society.

9. SIMULATION RULES, ROUND 2: CAPITALIST PRODUCTION Your new job is to create paper airplanes Three students work in a factory owned by Simone Simone pays Ms. Lam for supplies (paper) and sets wages, hours, working conditions, etc. The rest of the class are consumers – they want to buy paper airplanes Fun fact: the cost of living is 3 pennies

10. SURPRISE! The Communists have taken power in a revolution led by the charismatic working- class hero Premier Lam. The benevolent Premier Lam has announced a policy of manufacturing all paper airplanes in a factory owned by the state.

11. SIMULATION RULES, ROUND 3: COMMUNIST PRODUCTION Everyone now works in a factory owned by the government The government has hired Simone as manager Everyone is guaranteed a job Everyone is guaranteed a salary of 4 pennies (except Simone, who gets 5 pennies); the cost of living is still 3 pennies The government (that’s me) sets quotas for Simone to fulfill

12. THE CAPITALIST ECONOMY Individuals own the means of production High degree of inequality between people Consumers decide what is produced Owners of the means of production (e.g., machines in factories) earn profit Goods are allocated according to who can afford them

13. THE COMMUNIST ECONOMY (IN THEORY) The workers own the means of production Minimal inequality The workers decide what is produced Profits belong to the workers collectively Goods are allocated according to who needs them “From each according to his ability; to each according to his need”

14. THE SOVIET ECONOMY UNDER STALIN Means of production are owned by the state Limited inequality – but Communist Party members are much better off The state decides what to produce Heavy emphasis on industry and military production The state earns profits Goods are allocated according to the state’s decisions