Price controls are governmental restrictions on the prices that can be charged for goods and services in a market. The intent behind implementing such controls can stem from the desire to maintain affordability of goods during shortages, to slow inflation, or, alternatively, to ensure a minimum income for providers of certain goods or a minimum wage. There are two primary forms of price control, a price ceiling, the maximum price that can be charged, a price floor, the minimum price that can be charged. Price controls have been imposed as part of a larger incomes policy package employing wage controls and other regulatory elements. Although price controls are sometimes used by governments, economists agree that price controls don't accomplish what they are intended to do and are to be avoided. For example, nearly three-quarters of economists surveyed disagreed with the statement, "Wage-price controls are a useful policy option in the control of inflation." The Roman Emperor Diocletian tried to set maximum prices for all commodities in the late 3rd century AD but with little success.
In early 14th century, the Delhi Sultanate ruler Alauddin Khalji instituted several market reforms, which included price-fixing for a wide range of goods, including grains, cloth and animals. However, a few months after his death, these measures were revoked by his son Qutbuddin Mubarak Shah. During the French Revolution, the Law of the Maximum set price limits on the sale of food and other staples. Governments in planned economies control prices on most or all goods but have not sustained high economic performance and have been entirely replaced by mixed economies. Price controls have been used in modern times in less-planned economies, such as rent control. During World War I, the United States Food Administration enforced price controls on food. Price controls were imposed in the US and Nazi Germany during World War II. Wage controls have been tried in many countries to reduce inflation successfully. Modern neoclassical economic theory supports the alternative remedy of reducing the money supply and proposes that monetary inflation is caused by too much money creation by the central bank.
The National Board for Prices and Incomes was created by the government of Harold Wilson in 1965 in an attempt to solve the problem of inflation in the British economy by managing wages and prices. The Prices and Incomes Act 1966 c. 33 affected UK labour law, regarding wage levels and price policies. It allowed the government to begin a process to scrutinise rising levels of wages by initiating reports and inquiries and giving orders for a standstill; the objective was to control inflation. It proved unpopular after the 1960s. In the United States, price controls have been enacted several times: During World War I and World War II, by President Nixon; the first time price controls were enacted nationally was in 1906 as a part of the Hepburn Act. In addition, States have sometimes chosen to implement their own control policies. In the 1860s, several midwestern states of the United States, namely Minnesota, Iowa and Illinois, enacted a series of laws called the Granger Laws to regulate rising fare prices of railroad and grain elevator companies.
California controls the prices of electricity within the state, which conservative economist Thomas Sowell blames for the occasional electricity shortages the state experiences. Sowell said in 2001, "Since the utility companies have been paying more for electricity than they were allowed to charge their customers, they were operating in the red and the financial markets are downgrading their bonds." California's price-setting board agreed to raise rates but not as much as the companies were paying on the wholesale market for their electricity. Economist Lawrence Makovich contended, "We've seen in California that price caps on retail rates increased demand and made the shortage worse and price caps forced the largest utility, Pacific Gas and Electric Company, into bankruptcy in four months." While some charged that electricity providers had in past years charged above-market rates, in 2002 the San Francisco Chronicle reported that before the blackouts, many energy providers left the state because they could make a greater profit in other Western states.
The Federal Energy Regulatory Commission stepped in and set price caps for each megawatt of power bought after lifting the caps to avoid rolling blackouts six months previously. The state of Hawaii introduced a cap on the wholesale price of gasoline in an effort to fight "price gouging" in that state in 2005; because it was seen as too soft and ineffective, it was repealed shortly thereafter. A price floor is a government- or group-imposed price control or limit on how low a price can be charged for a product, commodity, or service. A price floor must be higher than the equilibrium price; the equilibrium price called the "market price", is the price where economic forces such as supply and demand are balanced and in the absence of external influences the values of economic variables will not change described as the point at which quantity demanded and quantity supplied are equal. Governments use price floors to keep certain prices from going too low. Two common price floors are supply management in Canadian agriculture.
Other price floors include regulated US airfares prior to 1978 and minimum price per-drink laws for alcohol. A related government intervention, a price control, is the price ceiling.
A peasant is a pre-industrial agricultural laborer or farmer one living in the Middle Ages under feudalism and paying rent, fees, or services to a landlord. In Europe, peasants were divided into three classes according to their personal status: slave and free tenant. Peasants either hold title to land in fee simple, or hold land by any of several forms of land tenure, among them socage, quit-rent and copyhold; the word peasantry is used in a non-pejorative sense as a collective noun for the rural population in the poor and under-developed countries of the world. The word "peasant" is derived from the 15th century French word païsant, meaning one from the pays, or countryside. Peasants made up the majority of the agricultural labour force in a pre-industrial society; the majority of the people in the Middle Ages were peasants. Though "peasant" is a word of loose application, once a market economy had taken root, the term peasant proprietors was used to describe the traditional rural population in countries where smallholders farmed much of the land.
More the word "peasant" is sometimes used to refer pejoratively to those considered to be "lower class" defined by poorer education and/or a lower income. The open field system of agriculture dominated most of northern Europe during medieval times and endured until the nineteenth century in many areas. Under this system, peasants lived on a manor presided over by a bishop of the church. Peasants paid labor services to the lord in exchange for their right to cultivate the land. Fallowed land, pastures and wasteland were held in common; the open field system required cooperation among the peasants of the manor. It was replaced by individual ownership and management of land; the relative position of peasants in Western Europe improved after the Black Death had reduced the population of medieval Europe in the mid-14th century: resulting in more land for the survivors and making labor more scarce. In the wake of this disruption to the established order centuries saw the invention of the printing press, the development of widespread literacy and the enormous social and intellectual changes of the Enlightenment.
The evolution of ideas in an environment of widespread literacy laid the groundwork for the Industrial Revolution, which enabled mechanically and chemically augmented agricultural production while increasing the demand for factory workers in cities, who became what Karl Marx called the proletariat. The trend toward individual ownership of land, typified in England by Enclosure, displaced many peasants from the land and compelled them unwillingly, to become urban factory-workers, who came to occupy the socio-economic stratum the preserve of the medieval peasants; this process happened in an pronounced and truncated way in Eastern Europe. Lacking any catalysts for change in the 14th century, Eastern European peasants continued upon the original medieval path until the 18th and 19th centuries. Serfdom was abolished in Russia in 1861, while many peasants would remain in areas where their family had farmed for generations, the changes did allow for the buying and selling of lands traditionally held by peasants, for landless ex-peasants to move to the cities.
Before emancipation in 1861, serfdom was on the wane in Russia. The proportion of serfs within the empire had decreased "from 45-50 percent at the end of the eighteenth century, to 37.7 percent in 1858." In Germany, peasants continued to center their lives in the village well into the 19th century. They belonged to a corporate body and helped to manage the community resources and to monitor community life. In the East they had the status of serfs bound permanently to parcels of land. A peasant is called a "Bauer" in German and "Bur" in Low German. In most of Germany, farming was handled by tenant farmers who paid rents and obligatory services to the landlord—typically a nobleman. Peasant leaders supervised the fields and ditches and grazing rights, maintained public order and morals, supported a village court which handled minor offenses. Inside the family the patriarch made all the decisions, tried to arrange advantageous marriages for his children. Much of the villages' communal life centered on holy days.
In Prussia, the peasants drew lots to choose conscripts required by the army. The noblemen handled external relationships and politics for the villages under their control, were not involved in daily activities or decisions. Information about the complexities of the French Revolution the fast-changing scene in Paris, reached isolated areas through both official announcements and long-established oral networks. Peasants responded differently to different sources of information; the limits on political knowledge in these areas depended more on how much peasants chose to know than on bad roads or illiteracy. Historian Jill Maciak concludes that peasants "were neither subservient, nor ignorant."In his seminal book Peasants into Frenchmen: the Modernization of Rural France, 1880–1914, historian Eugen Weber traced the modernization of French villages and argued that rural France went from backward and isolated to modern and possessing a sense of French nationhood during the late 19th and early 20th centuries.
He emphasized the roles of railroads, republican schools, universal military conscription. He based his findings on school records, migration patterns, military-service documents and economic trends. Weber argued that until 1900 or so a sense of French nationhood
Economy of the Soviet Union
The economy of the Union of Soviet Socialist Republics was based on a system of state ownership of the means of production, collective farming, industrial manufacturing and centralized administrative planning. The economy was characterised by state control of investment, public ownership of industrial assets, macroeconomic stability, negligible unemployment and high job security. Beginning in 1928, the course of the Soviet Union's economy was guided by a series of five-year plans. By the 1950s, the Soviet Union had evolved from a agrarian society into a major industrial power, its transformative capacity—what the White House National Security Council of the United States described as a "proven ability to carry backward countries speedily through the crisis of modernization and industrialization"—meant communism appealed to the intellectuals of developing countries in Asia. Impressive growth rates during the first three five-year plans are notable given that this period is nearly congruent with the Great Depression.
During this period, the Soviet Union saw rapid industrial growth while other regions were suffering from crisis. The impoverished base upon which the five-year plans sought to build meant that at the commencement of Operation Barbarossa the country was still poor. A major strength of the Soviet economy was its enormous supply of oil and gas, which became much more valuable as exports after the world price of oil skyrocketed in the 1970s; as Daniel Yergin notes, the Soviet economy in its final decades was "heavily dependent on vast natural resources–oil and gas in particular". World oil prices collapsed in 1986. After Mikhail Gorbachev came to power in 1985, he began a process of economic liberalization by dismantling the command economy and moving towards a mixed economy. At its dissolution at the end of 1991, the Soviet Union begat a Russian Federation with a growing pile of $66 billion in external debt and with a few billion dollars in net gold and foreign exchange reserves; the complex demands of the modern economy somewhat constrained the central planners.
Corruption and data fiddling became common practice among the bureaucracy by reporting fulfilled targets and quotas, thus entrenching the crisis. From the Stalin-era to the early Brezhnev-era, the Soviet economy grew much slower than Japan and faster than the United States. GDP levels in 1950 were 161 in Japan and 1,456 in the United States. By 1965, the corresponding values were 1,011, 587 and 2,607; the Soviet Union maintained itself as the second largest economy in both nominal and purchasing power parity values for much of the Cold War until 1988, when Japan's economy exceeded $3 trillion in nominal value. The Soviet Union's small consumer sector accounted for just under 60% of the country's GDP in 1990 while the industrial and agricultural sectors contributed 22% and 20% in 1991. Agriculture was the predominant occupation in the Soviet Union before the massive industrialization under Joseph Stalin; the service sector was of low importance in the Soviet Union, with the majority of the labor force employed in the industrial sector.
The labor force totaled 152.3 million people. Major industrial products included petroleum, motor vehicles, telecommunications, electronics, food processing, lumber and defense industry. Though its GDP crossed $1 trillion in the 1970s and $2 trillion in the 1980s, the effects of central planning were progressively distorted due to the rapid growth of the second economy in the Soviet Union. Based on a system of state ownership, the Soviet economy was managed through Gosplan and the Gossnab. Beginning in 1928, the economy was directed by a series of five-year plans, with a brief attempt at seven-year planning. For every enterprise, planning ministries defined the mix of economic inputs, a schedule for completion, all wholesale prices and all retail prices; the planning process was based around material balances—balancing economic inputs with planned output targets for the planning period. From 1930 until the late 1950s, the range of mathematics used to assist economic decision-making was, for ideological reasons restricted.
On the whole, the plans were overoptimistic, plagued by falsified reporting. The industry was long concentrated after 1928 on the production of capital goods through metallurgy, machine manufacture, chemical industry. In Soviet terminology, goods were known as capital; this emphasis was based on the perceived necessity for fast industrialization and modernization of the Soviet Union. After the death of Joseph Stalin in 1953, consumer goods received somewhat more emphasis due to efforts of Malenkov. However, when Nikita Khrushchev consolidated his power by sacking Georgy Malenkov, one of the accusations against Malenkov was that he permitted "theoretically incorrect and politically harmful opposition to the rate of development of heavy industry in favor of the rate of development of light and food industry". Since 1955, the priorities were again given to capital goods, expressed in the decisions of the 20th Congress of the Communist Party of the Soviet Union in 1956. Economist Naum Jasny says that while many of the official statistics were reported: The fact is that the most important official general indices of economic development – those of national income, industrial output, real incomes of wage-e
State capitalism is an economic system in which the state undertakes commercial economic activity and where the means of production are organized and managed as state-owned business enterprises, or where there is otherwise a dominance of corporatized government agencies or of publicly listed corporations in which the state has controlling shares. Marxist literature defines state capitalism as a social system combining capitalism with ownership or control by a state—by this definition, a state capitalist country is one where the government controls the economy and acts like a single huge corporation, extracting the surplus value from the workforce in order to invest it in further production; this designation applies regardless of the political aims of the state and some people argue that the modern People's Republic of China constitutes a form of state capitalism and/or that the Soviet Union failed in its goal to establish socialism, but rather established state capitalism. The term "state capitalism" is used by some in reference to a private capitalist economy controlled by a state meaning a owned economy, subject to statist economic planning.
This term was used to describe the controlled economies of the Great Powers in the First World War. State capitalism has come to refer to an economic system where the means of production are owned but the state has considerable control over the allocation of credit and investment as in the case of France during the period of dirigisme after the Second World War. State capitalism may be used to describe a system where the state intervenes in the economy to protect and advance the interests of large-scale businesses. Libertarian socialist Noam Chomsky applies the term "state capitalism" to economies such as that of the United States, where large enterprises that are deemed "too big to fail" receive publicly funded government bailouts that mitigate the firms' assumption of risk and undermine market laws and where the state funds private production at public expense, but private owners reap the profits; this practice is claimed to be in contrast with the ideals of both socialism and laissez-faire capitalism.
There are various theories and critiques of state capitalism, some of which existed before the 1917 October Revolution. The common themes among them identify that the workers do not meaningfully control the means of production and detect that commodity relations and production for profit still occur within state capitalism. In Socialism: Utopian and Scientific, Friedrich Engels argued that state ownership does not do away with capitalism by itself, but rather would be the final stage of capitalism, consisting of ownership and management of large-scale production and communication by the bourgeois state, he argued. The term was first used by Wilhelm Liebknecht in 1896 who said: "Nobody has combated State Socialism more than we German Socialists, it has been suggested that the concept of state capitalism can be traced back to Mikhail Bakunin's critique during the First International of the potential for state exploitation under Marxist-inspired socialism, or to Jan Waclav Machajski's argument in The Intellectual Worker that socialism was a movement of the intelligentsia as a class, resulting in a new type of society he termed state capitalism.
For anarchists, state socialism is equivalent to state capitalism, hence oppressive and a shift from private capitalists to the state being the sole employer and capitalist. During World War I, using Vladimir Lenin's idea that Czarism was taking a "Prussian path" to capitalism, the Bolshevik Nikolai Bukharin identified a new stage in the development of capitalism in which all sectors of national production and all important social institutions had become managed by the state—he termed this new stage "state capitalism". After the October Revolution, Lenin used the term positively. In spring 1918, during a brief period of economic liberalism prior to the introduction of war communism and again during the New Economic Policy of 1921, Lenin justified the introduction of state capitalism controlled politically by the dictatorship of the proletariat to further central control and develop the productive forces: Reality tells us that state capitalism would be a step forward. If in a small space of time we could achieve state capitalism, that would be a victory.
Lenin argued the state should temporarily run the economy, which would be taken over by workers. To Lenin, "state capitalism" did not mean the state would run most of the economy, but that "state capitalism" would be one of five elements of the economy: State capitalism would be a step forward as compared with the present state of affairs in our Soviet Republic. If in six months' time state capitalism became established in our Republic, this would be a great success and a sure guarantee that within a year socialism will have gained a permanently firm hold; the term "state capitalism" has been used by various socialists, including anarchists and Leninists. The earliest critique of the Soviet Union as state capitalist was formulated by the Russian anarchists as documented in Paul Avrich's work on Russian anarchism; this claim would become standard in anarchist works. For example, the prominent anarchist Emma Goldman in an article from 1935 titled "There Is No Communism in Russia" said of the Soviet Union
New Economic Policy
The New Economic Policy was an economic policy of Soviet Russia proposed by Vladimir Lenin in 1921 as a temporary expedient. Lenin characterized the NEP in 1922 as an economic system that would include "a free market and capitalism, both subject to state control", while socialized state enterprises would operate on "a profit basis"; the NEP represented a more market-oriented economic policy to foster the economy of the country, which had suffered since 1914. The Soviet authorities revoked the complete nationalization of industry and introduced a system of mixed economy which allowed private individuals to own small enterprises, while the state continued to control banks, foreign trade, large industries. In addition, the NEP abolished prodrazvyorstka and introduced prodnalog: a tax on farmers, payable in the form of raw agricultural product; the Bolshevik government adopted the NEP in the course of the 10th Congress of the All-Russian Communist Party and promulgated it by a decree on 21 March 1921: "On the Replacement of Prodrazvyorstka by Prodnalog".
Further decrees refined the policy. Other policies included the attraction of foreign capital; the NEP policy created. Joseph Stalin abolished the NEP in 1928. In November 1917, the Bolsheviks seized control of key centres in Russia; this led to the Russian Civil War of 1917–1922, which pitted the Bolsheviks and their allies against the Whites and other counter-revolutionary forces. During this period the Bolsheviks attempted to administer Russia's economy purely by decree, a policy of the War Communism. Farmers and factory workers were ordered to produce, food and goods were seized and issued by decree. While this policy enabled the Bolshevik regime to overcome some initial difficulties, it soon caused economic disruptions and hardships. Producers who were not directly compensated for their labor stopped working, leading to widespread shortages. Combined with the devastation of the war, these were major hardships for the Russian people and diminished popular support for the Bolsheviks. At the end of the Civil War, the Bolsheviks controlled Russian cities, but 80% of the Russian population were peasants.
Although all the fighting had occurred outside urban areas, urban populations decreased substantially. The war disrupted transportation, basic public services. Infectious diseases thrived typhus. Shipments of food and fuel by railroad and by water decreased. City residents first experienced a shortage of heating oil coal, until they resorted to wood. Populations in northern towns declined an average of 24%. Northern towns received less food than towns in the agricultural south. Petrograd alone lost 850,000 people, half of the urban population decline during the Civil War. Hunger and poor conditions drove residents out of cities. Workers migrated south to get peasants' surpluses. Recent migrants to cities left. Urban workers formed the core of Bolshevik support, so the exodus posed a serious problem. Factory production slowed or halted. Factories lacked 30,000 workers in 1919. To survive, city dwellers sold personal valuables, made artisan craft-goods for sale or barter, planted gardens; the acute need for food drove them to obtain 50–60% of food through illegal trading.
The shortage of cash caused the black market to use a barter system, inefficient. Drought and frost led to the Russian famine of 1921, in which millions starved to death in the Volga region, urban support for the Bolshevik party eroded; when no bread arrived in Moscow in 1921, workers became disillusioned. They organised demonstrations against the Bolshevik Party's policy of privileged rations, in which the Red Army, Party members, students received rations first; the Kronstadt rebellion of soldiers and sailors broke out in March 1921, fueled by anarchism and populism. In 1921 Lenin replaced the food requisitioning policy with a tax, signaling the inauguration of the New Economic Policy; the laws sanctioned the co-existence of private and public sectors, which were incorporated in the NEP, which on the other hand was a state oriented "mixed economy". The NEP represented a move away from full nationalization of certain parts of industries; some kinds of foreign investments were expected by the Soviet Union under the NEP, in order to fund industrial and developmental projects with foreign exchange or technology requirements.
The NEP was a new agricultural policy. The Bolsheviks viewed traditional village life as conservative and backward. With the NEP, the state only allowed private landholdings because the idea of collectivized farming had met strong opposition. Lenin understood that economic conditions were dire, so he opened up markets to a greater degree of free trade, hoping to motivate the population to increase production. Under the NEP, not only were "private property, private enterprise, private profit restored in Lenin's Russia," but Lenin's regime turned to international capitalism for assistance, willing to provide "generous concessions to foreign capitalism." Lenin took the position that in order to achieve socialism, he had to create "the missing material prerequisites" of modernization and industrial development that made it imperative for Soviet Russia to "fall back on a centrally supervised market-influenced program of state capitalism". Lenin was following Karl Marx's p
Joseph Vissarionovich Stalin was a Georgian revolutionary and Soviet politician who led the Soviet Union from the mid–1920s until 1953 as General Secretary of the Communist Party of the Soviet Union and Premier. While presiding over a collective leadership as first among equals, he consolidated enough power to become the country's de facto dictator by the 1930s. A communist ideologically committed to the Leninist interpretation of Marxism, Stalin helped to formalise these ideas as Marxism–Leninism, while his own policies became known as Stalinism. Born to a poor family in Gori, Russian Empire, Stalin joined the Marxist Russian Social Democratic Labour Party as a youth, he edited the party's newspaper and raised funds for Vladimir Lenin's Bolshevik faction via robberies and protection rackets. Arrested, he underwent several internal exiles. After the Bolsheviks seized power during the 1917 October Revolution and created a one-party state under Lenin's newly renamed Communist Party, Stalin joined its governing Politburo.
Serving in the Russian Civil War before overseeing the Soviet Union's establishment in 1922, Stalin assumed leadership over the country following Lenin's 1924 death. During Stalin's rule, "Socialism in One Country" became a central tenet of the party's dogma. Under the Five-Year Plans, the country underwent agricultural collectivisation and rapid industrialization, creating a centralized command economy; this led to significant disruptions in food production that contributed to the famine of 1932–33. To eradicate accused "enemies of the working class", Stalin instituted the "Great Purge", in which over a million were imprisoned and at least 700,000 executed between 1934 and 1939. By 1937, he had complete personal control over the state. Stalin's government promoted Marxism–Leninism abroad through the Communist International and supported anti-fascist movements throughout Europe during the 1930s in the Spanish Civil War. In 1939, it signed a non-aggression pact with Nazi Germany, resulting in the Soviet invasion of Poland.
Germany ended the pact by invading the Soviet Union in 1941. Despite initial setbacks, the Soviet Red Army repelled the German incursion and captured Berlin in 1945, ending World War II in Europe; the Soviets annexed the Baltic states and helped establish Soviet-aligned governments throughout Central and Eastern Europe and North Korea. The Soviet Union and the United States emerged from the war as the two world superpowers. Tensions arose between the Soviet-backed Eastern Bloc and U. S.-backed Western Bloc which became known as the Cold War. Stalin led his country through its post-war reconstruction, during which it developed a nuclear weapon in 1949. In these years, the country experienced another major famine and an anti-semitic campaign peaking in the Doctors' plot. Stalin died in 1953. Considered one of the 20th century's most significant figures, Stalin was the subject of a pervasive personality cult within the international Marxist–Leninist movement which revered him as a champion of the working class and socialism.
Since the dissolution of the Soviet Union in 1991, Stalin has retained popularity in Russia and Georgia as a victorious wartime leader who established the Soviet Union as a major world power. Conversely, his totalitarian government has been condemned for overseeing mass repressions, ethnic cleansing, hundreds of thousands of executions, famines which killed millions. Stalin was born in the Georgian town of Gori on 18 December 1878, he was the son of Besarion "Beso" Jughashvili and Ekaterine "Keke" Geladze, who had married in May 1872, had lost two sons in infancy prior to Stalin's birth. They were ethnically Georgian, Stalin grew up speaking the Georgian language. Gori was part of the Russian Empire, was home to a population of 20,000, the majority of whom were Georgian but with Armenian and Jewish minorities. Stalin was baptised on 29 December, he was nicknamed "Soso", a diminutive of "Ioseb". Besarion owned his own workshop; the family found themselves living in poverty, moving through nine different rented rooms in ten years.
Besarion became an alcoholic, drunkenly beat his wife and son. To escape the abusive relationship, Keke took Stalin and moved into the house of a family friend, Fr. Christopher Charkviani, she worked as launderer for local families sympathetic to her plight. Keke was determined to send her son to school, something that none of the family had achieved. In late 1888, aged 10 Stalin enrolled at the Gori Church School; this was reserved for the children of clergy, although Charkviani ensured that the boy received a place. Stalin excelled academically, displaying talent in painting and drama classes, writing his own poetry, singing as a choirboy, he got into many fights, a childhood friend noted that Stalin "was the best but the naughtiest pupil" in the class. Stalin faced several severe health problems. Aged 12, he was injured after being hit by a phaeton, the cause of a lifelong disability to his left arm. At his teachers' recommendation, Stalin proceeded to the Spiritual Seminary in Tiflis, he enrolled at the school in August 1894, enabled by a scholarship that allowed him to study at a reduced rate.
Here he joined 600 trainee priests who boarded at the semina
The Left Opposition was a faction within the Bolshevik Party from 1923 to 1927 headed de facto by Leon Trotsky. The Left Opposition formed as part of the power struggle within the party leadership that began with the Soviet founder Vladimir Lenin's illness and intensified with his death in January 1924; the battle lines were drawn between Trotsky and his supporters who signed The Declaration of 46 in October 1923 on the one hand and a triumvirate of Comintern chairman Grigory Zinoviev, Communist Party General Secretary Joseph Stalin and Politburo chairman Lev Kamenev on the other hand. The Left Opposition argued that the New Economic Policy had weakened the Soviet Union by allowing the private sector to achieve an important position in the Soviet economy while in their opinion, the centrally planned, socialised sector of the economy languished; the platform called for the state to adopt a programme for mass industrialisation and to encourage the mechanization and collectivisation of agriculture, thereby developing the means of production and helping the Soviet Union move towards parity with Western capitalist countries, which would increase the proportion of the economy, part of the socialised sector of the economy and definitively shift the Soviet Union towards a socialist mode of production.
There was the Right Opposition, led by the leading party theoretician and Pravda editor Nikolai Bukharin and supported by Sovnarkom Chairman Alexei Rykov. In late 1924, as Stalin proposed his new socialism in one country theory, Stalin drew closer to the Right Opposition and his triumvirate with Zinoviev and Kamenev broke up over the next year; the Right Opposition were allied to Stalin's Centre from late 1924 until their alliance broke up in the years from 1928–1930 over strategy towards the kulaks and NEPmen. Trotsky and his supporters in the Left Opposition were joined by the Group of Democratic Centralism to form the United Opposition; the first confrontation between the Left Opposition and the triumvirate occurred from October 1923 to January 1924 over industrialization policies. The triumvirate won decisively at the XIII Party Conference in January 1924. Following Lenin's death in January 1924, the confrontation between the Left Opposition and the triumvirate expanded more into a dispute over Trotsky's policies, with the triumvirate accusing Trotsky's policies of being "anti-Leninist".
At the XIIIth Communist Party Congress in May 1924, the triumvirate's position was further strengthened at the Left Opposition's expense. Another confrontation took place from October to December 1924, during the so-called "Literary Discussion" and criticism of Trotsky's permanent revolution policy as Stalin proposed socialism in one country; this resulted in the removal of Trotsky from his ministerial post on 6 January 1925, although Stalin opposed Zinoviev's demand that Trotsky be expelled from the Communist Party. With Trotsky marginalized and Kamenev had a falling out with Stalin at the XIVth Communist Party Conference in April 1925 over Stalin's October 1924 proposal of Socialism in One Country, which Zinoviev and Kamenev now opposed. By this time, the Right Opposition leader, had elaborated on Stalin's socialism in one country policy, giving it a theoretical justification; this solidified the Right Opposition as Stalin's main allies, as the triumvirate of Stalin-Zinoviev-Kamenev from recent years broke up.
Soon after the April 1925 Conference and Kamenev formed the New Opposition, but they were defeated by Stalin, again supported by Bukharin and Rykov, at the XIVth Party Congress in December 1925. Soon after their defeat at the Congress and Kamenev joined forces with Trotsky's Left Opposition in early 1926, in what became known as the United Opposition. From July to October 1926, the United Opposition lost out to Stalin, its leaders were expelled from the ruling Politburo. In October 1927, soon after catastrophic events regarding the Chinese Revolution of 1925-27, which confirmed the United Opposition's critical analysis of the Communist Party's support for the nationalist Kuomintang, the last United Opposition members were expelled from the Communist Party Central Committee. In December 1927, the XVth Party Congress declared Left Opposition and Trotskyist views to be incompatible with Communist Party membership and expelled all leading Left Opposition supporters from the Party. After their expulsion by the XVth Congress, Zinoviev and their supporters surrendered to Stalin, "admitted their mistakes" and were readmitted to the Communist Party in 1928, although they never regained their former influence and perished in the Great Purge.
Trotsky and his supporters, on the other hand, refused to capitulate to Stalin and were exiled to remote areas of the Soviet Union in early 1928. Trotsky was expelled from the country in February 1929, sent into exile in Turkey. Trotsky's supporters remained in exile, but their resolve began to waver in 1929 as Stalin turned against Bukharin and Rykov and adopted the policy of collectivization, which appeared to be close to the policies that the Left Opposition had advocated earlier; the Left Opposition attempted to field opposition candidates against the official Communist Party candidates in the 1929 elections, but to no avail. Most prominent Left Opposition members recanted between 1929 and 1934, but they nearly all perished during the Great Purge