Scissor crisis
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The Scissor Crisis was a name given during the New Economic Policy (NEP) in Russia in 1923 to the problem that the NEP was improving agricultural production faster than industrial production, leading to a disparity in prices (the name was coined by Trotsky after the scissors-shaped price/time graph). This meant that peasants' incomes fell, and it became difficult for them to buy manufactured goods. As a result, peasants began to stop selling their produce and revert to subsistence farming, leading to fears of a famine.
It is worth noting that due to the NEP being implemented in 1921, it had rapid success, and by 1923 (the year of the Scissor Crisis), factory output had a huge increase of 200%, along with cereal output rising by 23%. Due to the success in the countryside, food prices fell, whereas industrial prices remained constant, and therefore the Smychka was jeopardised.
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