NEPmen
Encyclopedia
The NEPmen were businessmen and women in the young Soviet Union who took advantage of the opportunities for private trade
and small-scale manufacturing
created by the New Economic Policy
(NEP). The NEP was a response to revolts against meager rations in the USSR during the early 1920s under Lenin's policy of War Communism
. Lenin responded by instituting the NEP, which encouraged private buying and selling, even to, as one official put it, "get rich
".
These entrepreneur
ial activities, and their very existence, were an affront to the Communist Party and its goal of building socialism
in the USSR. Yet, so long as state commercial and cooperative institutions were incapable of meeting the demand
for goods and services, NEPmen were tolerated. As they gained a greater standard of living compared to their poor, working class counterparts, NEPmen became reviled, and stereotype
d as greedy, and in some cases, Jewish.
By the early 1920s, NEPmen began to be tax
ed heavily, which spurred the rise of black markets in some commodities. In 1925, these restrictions were reduced, affording NEPmen greater leeway in conducting commerce. This would not last for long, however. As Stalin consolidated power, he moved violently to end the New Economic Policy and put NEPmen out of business. Many former NEPmen ultimately fell victim to the repression
of the Great Purges.
Trade
Trade is the transfer of ownership of goods and services from one person or entity to another. Trade is sometimes loosely called commerce or financial transaction or barter. A network that allows trade is called a market. The original form of trade was barter, the direct exchange of goods and...
and small-scale manufacturing
Small business
A small business is a business that is privately owned and operated, with a small number of employees and relatively low volume of sales. Small businesses are normally privately owned corporations, partnerships, or sole proprietorships...
created by the New Economic Policy
New Economic Policy
The New Economic Policy was an economic policy proposed by Vladimir Lenin, who called it state capitalism. Allowing some private ventures, the NEP allowed small animal businesses or smoke shops, for instance, to reopen for private profit while the state continued to control banks, foreign trade,...
(NEP). The NEP was a response to revolts against meager rations in the USSR during the early 1920s under Lenin's policy of War Communism
War communism
War communism or military communism was the economic and political system that existed in Soviet Russia during the Russian Civil War, from 1918 to 1921...
. Lenin responded by instituting the NEP, which encouraged private buying and selling, even to, as one official put it, "get rich
Rich
Rich may refer to wealth. Rich may also refer to:- Organizations :* B.C. Rich, guitar manufacturer* Rich Products, international food products corporation* Rich's, U.S. department store retail chain in the southern U.S....
".
These entrepreneur
Entrepreneur
An entrepreneur is an owner or manager of a business enterprise who makes money through risk and initiative.The term was originally a loanword from French and was first defined by the Irish-French economist Richard Cantillon. Entrepreneur in English is a term applied to a person who is willing to...
ial activities, and their very existence, were an affront to the Communist Party and its goal of building socialism
Socialism
Socialism is an economic system characterized by social ownership of the means of production and cooperative management of the economy; or a political philosophy advocating such a system. "Social ownership" may refer to any one of, or a combination of, the following: cooperative enterprises,...
in the USSR. Yet, so long as state commercial and cooperative institutions were incapable of meeting the demand
Demand
- Economics :*Demand , the desire to own something and the ability to pay for it*Demand curve, a graphic representation of a demand schedule*Demand deposit, the money in checking accounts...
for goods and services, NEPmen were tolerated. As they gained a greater standard of living compared to their poor, working class counterparts, NEPmen became reviled, and stereotype
Stereotype
A stereotype is a popular belief about specific social groups or types of individuals. The concepts of "stereotype" and "prejudice" are often confused with many other different meanings...
d as greedy, and in some cases, Jewish.
By the early 1920s, NEPmen began to be tax
Tax
To tax is to impose a financial charge or other levy upon a taxpayer by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes are also imposed by many subnational entities...
ed heavily, which spurred the rise of black markets in some commodities. In 1925, these restrictions were reduced, affording NEPmen greater leeway in conducting commerce. This would not last for long, however. As Stalin consolidated power, he moved violently to end the New Economic Policy and put NEPmen out of business. Many former NEPmen ultimately fell victim to the repression
Political repression
Political repression is the persecution of an individual or group for political reasons, particularly for the purpose of restricting or preventing their ability to take political life of society....
of the Great Purges.