jan 2, 1924 - Significance NEP

Description:

- Grain harvest doubled between 1921 - 1925
- Factory workers wages increased by 150%
- The scissor crisis was created as agriculture was able to recover quickly, due to peasants replanting crops. However, industry recovered much more slowly
- This decreased the value of agricultural goods and increased the value of industrial goods
- Government reintroduced grain requisitioning to combat this
- Free trade markets and shops were closed down
- Currency inflation occurred
- Peasant incomes began falling dramatically
- Peasants reverted to hoarding grain in order to drive prices back up
- Weaker harvests occurred in 1927

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