The Soviet Union, as a communist state, lacked developed capital and private investment. Among the three elements of industry - production, distribution, and consumption - it lacked distribution and consumption.
Then how did this country, with practically nothing, manage to become the world's leading industrial nation in the 1920s?
First, investment - in other words, capital.
While in other countries, wealthy men in suits would naturally establish companies, develop technology, hire workers, and pioneer markets, then generate profits to pay taxes to the national treasury.
The poor Soviet Union's solution was simple.
They abolished private property and markets in rural areas, and the government set low prices for agricultural products, investing the profits generated from the distribution process into manufacturing.
Simply put, since it was an agricultural country, they squeezed the farmers.
