ABSTRACT
Everyone recognizes that the goods famine is the result of an excess of effective demand over supply. Likewise, everyone realizes that this excess is an indication that production is not keeping pace with demand, at least not for the moment—that is, that the goods famine is a function of insufficient accumulation in industry. According to the Gosplan control figures, gross agricultural production in 1924-25 was 9.15 billion rubles, or 71 percent of the prewar figure. Total industrial production was 5 billion rubles, or 71.4 percent of the prewar level. Apparently, there is a superficial arithmetical proportionality. The closer the entire economy comes to the prewar level of production at the prewar proportions between industry and agriculture, the more noticeable will be the realization of that domestic market.
