The Soviet Economy in 1930

The fulfillment of the most difficult tasks of the plan for 1930 was complicated by four political and economic events. First of all, a forced collectivization campaign was carried out, which had a disastrous impact on cattle breeding. Then, the industrial management system was rearranged that had a disorganizing effect on the management process. Besides, a credit system was reformed to get rid of the vestiges of the NEP. Furthermore, to intimidate the old intelligentsia, a campaign against wrecking was conducted, accompanied by numerous arrests of old qualified specialists and the dismissal of many others. As a result, it worsened the quality of the economy management at all levels. The chaos in the management and the recruitment of numerous unskilled personnel led to a severe drop in labor productivity in industry and construction. Also, an alternative assessment of the dynamics of national income in 1930 was offered. It was shown that the national income of the USSR in 1930 increased by only 3% instead of the official growth of 19,9%. The slow growth of national income with a significant increase in the savings share in national income led to a severe drop in all material living conditions of the population, aggravated by the acute commodity deficit.