QuoteReplyTopic: How did the soviets fund world war 2?? Posted: 29-Oct-2006 at 12:46
How did the soviets fund world war 2??
The Russian contribution to WW2 was no small thing, how did Russia fund its vast war effort, also what was the contribution of the soviet states towards this effort?.
Hum I don't know but as all the country's ressources and industries and banks belonged to the state, financing wasn't maybe their main problem.
Then you have inflation (but I've no proof of it).
I'm quite sure the US lend a few million dollars. And the shipping of Allies' aid did help a great deal as well.
Stakhanovism and patriotism and better industrial organization must have helped a great deal to increase the output. In this respect Kalachikov's story is very clear a guy gave to the state a patent that in the US for example would have cost millions.
Maybe forced or quasi-forced labour.
Maybe as well less money spent for agriculture and non military industries.
Maybe as Balaam remarked the problem wasn't exactly the same as for the other armies as the soviet soldier was very rustic and hence was much cheaper than his american or german counterpart.
They didn't have a very fancy army: no long distant bombers, no navy almost, no atomic bomb, just effective and cheap weapon (If you compare the price of a T34 with a Tiger II when you buy it and then over one year with oil consumption and reparing the T34 must be soooo much cheaper).
But the question is was Staline able to go on with the war much longer for instance in the prospect of a war against the American?
One way the Soivets funded te War was through the efforts of several economic / orgainizational geniuses at the senior level. Though these men were communists, their business skills would have "made Carneigie, Rockefeller or Rothschild proud".
Both the re location of entire industries to the Urals ahead of advancing Germans, and re allocation of food recesources after the loss of Ukraine showed phenomenal talent.
Originally posted by babyblue
Originally posted by Balaam
Send millions in with no gun to die for the motherland, occaisionaly give out a gun for a few to share and then NOT A STEP BACKWARDS!
Dude...too much Enemy at the Gate is not good for you..
I agree.
And now.... I will climb on a soap box.
Why do many people believe that the Soviets won only by overwhelming numbers? The truth is far different. Though there was a numerical Soviet advantage, these examples show how quickly and lethally Soviet skills developed.
Moscow 1941 Soviet defense in depth followed by a Counterattack catches Germans completly unprepared. Germans were not heavily outnumbered and were defeated by skill
Summer 1942- German armoured offensive on the open steppe closes on empty ground as Soviets skillfully evade encirclement
Stalingrad Winter 1942 The Germans were not out numbered significantly. We all know the outcome
Kursk July 1943 Elite SS and Wermacht Divisons are defeated in mid summer. They were not significantly out numbered. Instead, Soviets win through a masterful combination of armoured warfare and static defense.
Ukraine Summer 1944 Soviets reverse the BlitzKrieg on Germans. Advance hundreds of miles per month. Germans are pushed all the way back to Hungary.
One way the Soivets funded te War was through the efforts of several economic / orgainizational geniuses at the senior level. Though these men were communists, their business skills would have "made Carneigie, Rockefeller or Rothschild proud".
I know that re-organization is a very efficient way to improve productivity (I'm even ashamed not to have think about it my self) but you still need an extra input of cash. Where did this come from?
Japan was an "ally" until post WW1 when the Americans demanded that Britian give up her alliance with Japan in return for a cap on the American navy.
As mentioned, its a myth that the Soviets swamped (particuarly when so mnay men were second echelon for breakouts). Their main advantages were in artillery (the Russians had some of the most advanced rocketry in the world) and air power. Their other advantage was motivation and good tanks that rarely broke down, were easy to fix and tough.
I dont know much about the economy but I do know that almost all of Russias trucks and jeeps were US produced (originally they were produced in Britain but once American joined the war they took over) sent by the RN and Merchant Marine.
Hmm, messing around I came upon a few things that I hope can help;
1. Russian communications were apparently all down to American and Britain who supplied her with huge amounts of cables and telephone equipment (1 million miles of telephone cable).
2. Pre war planning of the economy (such as the three 5-year plans) gave Russian economists great experience and allowed them to plan a wartime economy (as oppossed to say Germany which didnt until Speer came along).
3. The exodus of 16million workers and 2,500 facories before the Germans in 1941 allowed them to quickly set up manufactoring capabilities in central Russia
4.Stalin cut back political control over the military and economy in 1942 which allowed the Soviet economy to reach full potential
5. Lend lease; almost all of Russia railway tracks, locamotives (1,981 of them!) and trucks were of American make. 14 million pairs of boots. 363,000 trucks (2/3 of all Russian trucks). Almost all the Soviet air foces high octane aviation fuel.US lend lease constituted $11.3 billion. Canada split $4.7 billion between Britain and Soviet Russia.
Source was BBC.
Wikipedia tells me that America sent Russia;
Aircraft 14,795
Tanks 7,056
Jeeps 51,503
Trucks 375,883
Motorcycles 35,170
Tractors 8,071
Guns 8,218
Machine guns 131,633
Explosives 345,735 tons
Building equipment valued $10,910,000
Railroad freight cars 11,155
Locomotives 1,981
Cargo ships 90
Submarine hunters 105
Torpedo boats 197
Ship engines 7,784
Food supplies 4,478,000 tons
Machines and equipment $1,078,965,000
Non-ferrous metals 802,000 tons
Petroleum products 2,670,000 tons
Chemicals 842,000 tons
Cotton 106,893,000 tons
Leather 49,860 tons
Tires 3,786,000
Army boots 15,417,000 pairs
This should be of some help; http://en.wikipedia.org/wiki/Military_production_during_World_War_II
Russia, though many assume the nation as poor and bankrupted, is a common misconception. Russia's standard of living may be poor, but the government is among the strongest in the world... rivaling the United States. (And I am not getting confused with Soviet Union either.)
Back in WWII, U.S.S.R. was not expecting German invasion. This is another common misconception since Russian defense literally broke in the beginning. Stalin, not totally trusting German ally (He killed his own generals, for crying aloud), decided that Russians should mobilize. This arroused German suspecion, but Russians simply said they were preparing defense from Japan. The secret treaty between Japan and U.S.S.R. was unknown to Nazi Germany... and the Axis alliance included Nazi Germany, Japanese Empire and Italy... not U.S.S.R.
This explains why millions of troops were mobilized and sent to Eastern Russia were they could defend and become obstacle to Japanese armies and allow U.S.S.R. to have backup troops in case of German invasion.
Stalin may not have been a stable man, but he was no fool. Many of Hitler
's generals urged that Stalin should not be taken lightly, as many German diplomats and spies studied Stalin ever since Nazi-Soviet Non Aggression Pact of 1939. Stalin created reserved armies right under Hitler's nose.
He even created new infantry and armor corp divisions. He encouraged Russian war factories to be estiblished in Ural Mountain, and sent extra troops to defend the Caucausian Mountains, where most of Russian oil is located.
The German invasion (Operation Barbarossa) was warned many times by Russian spies and intelligents from Allies... but Stalin did not believe it. He could not trust his men, and he believed that Nazi Germany would not dare to attack Soviet Union until Britain was taken over. He did not believe that Hitler would be foolish enough to create another front. But this time, Stalin was wrong. Operation Barbarossa commenced and Operation Sea Lion was abandoned. Stalin did not believe that Germans were in Russian soil even after German crushing Russian defense.
Once he learned that his plan backfired and (This is my true amazement) he fell down from his chair and cried bitterly. Stalin may have been a madman, but he cared about his nation's sovereignty. And with that excuse, his totalitarianism is justified. But once his duty failed, he could no longer justify his cruel regime. This shows that Stalin, though viewed as an inhuman dictator, is a simple man.
Moving on... he drew all the nation's resources to fund Russian military and other war efforts. Many Russians, at first viewed Germans as liberators, were shocked of German's treatment to Russians. (Hitler hated Slavic people as bad as Jews) When Stalin declared that Soviet Union declares total war against German invaders and introducing Scouraged Earth Policy, Russians did not object. Unlike many other allies, Russians fought to their death. Even if the resistance was few Russians against entire SS divisions, they fought for their motherland. Those who retreated were often shot by Russian generals. This explain why there were so many Russians surrendering to Germans in the beginning of Operation Barbarossa, but in later time... very few Russians ever surrendered.
Soviet Union, though they may deny this, got huge money and resources from the Allies. Lend and lease was granted to Soviet Union once Russia fought against German invaders.
All the industeries were relocated to Ural Mountains, and many Russians sacrificed little money had to contribute to Russian military. They worked overtime without reasonable payement for Russian military. No offense, but Russians were the real WWII patriots. Many Western workers would not dare to work in that condition. Thye enjoyed economical prosperity, but Russia was totally different. On Remembrance Day, I ask you not only to remember the Allied soldiers who fight in war, but also the poor and weak, but stong-willed Russians. They did the impossible, and this may be the reason why Western world truly enjoy the freedom and many of us enjoy...
Possibly a simple answer to your question is the socialist system. In the capitalist countries profit provided the motivation for the industrialists to produce. In Germany they had a strong military industrial system lead by Krupp and his fellow capitalists . Even after
The state controlled production the Krupps still had full control of the bottom line and the intricate Rothchild banking system financed all foreign essential purchases. In the west the industrialists made enormous profits just as they did during the WW1 and the American civil war. IF we remove these enormous profits made then we can perhaps understand how the Soviet Union performed that miracle called the Great Patriotic War with very little cash capital and remained foreign
Debt free.
IF we remove these enormous profits made then we can perhaps understand how the Soviet Union performed that miracle called the Great Patriotic War with very little cash capital and remained foreign
Debt free.
Are you sure there were no foreign loans taken out by the Soviets? I find it hard to believe that everything they "got" was in the form of grants with no debt incurred long term.
Yes Maqsad, you are right. I think Britian was the biggest lender to the Soviets while it was the biggest borrower from the US. Also they saved costs because they had baku oilfields. The reason for the german drive was oil. The baku and burmese were one of the first operational oilfields. By controlling baku fields German would have secured their supplies, by controlling persian oil they would deny the British. Could the Japanese dive to Burma also be part of this energy game?
Well, the new Communist government under leadership of Lenin refused to pay for all the debts that Nicholas II got from the allies, which is among the many reasons why the Allies encouraged and funded the whites in Russia's civil war. The only reason why Russians still got the funds is that Soviet Union's war effort to keep German forces busy in the Eastern Europe while Americans mobilize for war was so crucial to the Allied power. Plus, if the Soviet Uniom loses to Nazi Germany, it is possible that Nazi Germany may have survived WWII. MTo some extent, Germans may hada turned all their forces to Great Britain or even gave Rommel more tanks and men to advance to oil resources in Middle East. Mein Gott, Hitler may even have taken over the world!
As has been mentioned, the Soviets actually had considerable wealth at their disposal both prior to WWII and during WWII.
The Soviets received much of their war materials from the United States and Britain. In fact, the British Navy used a considerable amount of their naval resources to keep the shipping lanes open that were going to Soviet ports, allowing a continuing flow of food, medical supplies, and war materials to reach the Soviets.
The Soviets also had at their disposal a man in the United States that had helped them during the revolution and afterwards became their chief proponent in the United States, providing the Soviets with pretty much anything they needed. That man was Armand Hammer. Hammer using Soviet money bought Occidental Petroleum and provided the Soviets with oil from the 1920's on to just recently. The profits from Occidental Petroleum helped purchase other needed goods the Soviets needed, and with the United States and Britain keeping the shippments going to the Soviets, they always had a sizable reserve of war materials, much of which was never used.
The Lend/Lease policy that FDR established also provided the Soviets with considerable war materials. It was not just Britain that benefitted from the Lend/Lease Act.
What also helped the Soviets was that Stalin had the factories dismantled and moved to approximately 100 miles east of Moscow, Stalingrad, and Leningrad, where they were out of reach of the German Luftwaffe, and they were able to produce a great deal of war materials througn that method as well. Also, the Soviets had a knack for making weapons that were not necessarily sophisticated, but very effective, such as the AK-47, submachine guns, and the T-33/T-34 battle tanks that were easy to build and could be mass produced without much cost.
Also, when you have an extremely controlled economy, it is very easy to direct as much money as is need to a particular effort without consequences, especially when you are as ruthless and brutal as Stalin was.
Well when people talk of ww2 they usually talk about d-day and how allies defeated germany. After all soviet union did enter berlin, did defeat around 4 million of german soldiers. And when it comes to losses nobody is looking how much russians suffered during german advance. In ww2 russia had around 20 million losses (civil and military)
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