STUDY OF PRICES AND EARNING IN USSR

Document Type: 
Collection: 
Document Number (FOIA) /ESDN (CREST): 
CIA-RDP80-00809A000700100093-6
Release Decision: 
RIPPUB
Original Classification: 
R
Document Page Count: 
6
Document Creation Date: 
December 22, 2016
Document Release Date: 
October 24, 2011
Sequence Number: 
93
Case Number: 
Publication Date: 
December 29, 1952
Content Type: 
REPORT
File: 
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PDF icon CIA-RDP80-00809A000700100093-6.pdf263.12 KB
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Declassified in Part - Sanitized Copy Approved for Release 2011/10/25: CIA-RDP80-00809A000700100093-6 COUNTRY SUBJECT HOW PUBLISHED WHERE PUBLISHED DATE PUBLISHED LANGUAGE 'LA"'AFICATION RESTRICTED CENTRAL IN dff NffWW6gli REPORT INFORMATION FROM FOREIGN DOCUMENTS OR RADIO BROADCASTS CD NO. Weekly newspaper 15 Feb 1948 THIS DOCUMENTCONTAI NS 15ro E1An 0111IICiuQ THE 010014 10110115 05 TN[ 05IrE0 STAT,E WITHIN Txr 1GNg5 OI O51ONANE ACT 5O N. N. C.. IT AND NI.15 1115050. ITS TSANNSIENION ON TIE NETEUTIOS 011T, CONTENT, I5 ANT 1155511 To AN 0NAUTNONIIOO 155]01 I5 ENO. U NITE0 5T IAW. NCIN000CDON 0I THIS TONS 1E 5AOIIINITE0. DATE DIST.& Dec 1952 NO. OF PAGES 6 SUPPLEMENT TO REPORT NO. THIS IS UNEVALUATED INFORMATION STUDY OF PRICES AND EARNINGS IN USSR On 14 December, 1947, the Council of Ministers USSR and the Central Commit- tee of VKP(b) passed a decree concerning the enactment of monetary reform and the abolition of ration cards for consumers' goods. The foreword to the decree stated that monetary reform would increase the real earnings of workers and em- ployees and would aid in raising the workers' material welfare. The purpose of the decree was to abolish high commercial prices and establish uniform reduced state retail prices on consumers' goods. Actually, however, the only prices lowered were those on bread and flour (an average reduction of 12 percent) and on groats and macaroni (an average reduction of 10 percent). Prices on meat, fish, fats, sugar, confectionery products, salt, potatoes, vegetables, vodka, wine, tobacco products, and matches, were 1,:ft unchanged, Prices on eggs, i_uit, tea, and on textiles, footwear, clothing, and knit goods were raised. On 16 September 1946, all prices on rationed goods had been raised by an average of 200 percent. At that time some increase in earnings, although'not in proportion to the price increases, had been effected as follows: 110 rubles for those receiving up to 300 rubles a month, 100 rubles for those receiving up to 500 rubles a month, 90 rubles for those receiving up to 700 rubles a month, and 80 rubles for those receiving up to 900.rubles a month. The 1947 decree was accompanied by Order No 550 of the Ministry of Trade USSR, entitled "New Uniform State Retail Prices on Consumers' Goods." Actually, the order established uniform prices on only a few articles: tea, coffee, beer,' ice cream, caviar, vodka, matches, soap, better-grade cigarettes, thread, ladies' combs, clocks, phonographs, radio receivers, and cameras. The remaining food products were divided into three groups: bread and other foods, milk products and eggs, and dried and fresh fruits. For each product-group, the whole country was dlv!-,ed into three zones. Each zone had its own prices, varying from each other as mu-_h as 7-25 percent. CLASSIFICATION RESTRICTED STATE NAri NBPB DISTRI RIITInN Declassified in Part - Sanitized Copy Approved for Release 2011/10/25: CIA-RDP80-00809A000700100093-6 Declassified in Part - Sanitized Copy Approved for Release 2011/10/25: CIA-RDP80-00809A000700100093-6 The majority of manufactured articles had two prices, rural and urban. Prices in rural communities were 5-12 percent higher than in cities. The e:Jist for caviar, apublioshed for Products , but priceone were g food lard, included prices for ice cream, etables; the price list for manufactured articles quoted,pricesnonpfancyrcocks, ladies' combs, phonographs, and cameras, but failed to mention prices on coats, gloves, wool socks and stockings, boots, or children's clothing. Order No 550 established the following prices (sume of the secondary.arti- cles are not included in this table): Bread and Other Food Products (in rubles per kg) Article Bread, rye Zone 1 2.80 Zone 2 3.00 Zone 3 3.20 Bread, wheat, 2d tirade 4.00 4.40 4.8o Bread, wheat, 1st grade 6.20 7.00 7.80 Flour, rye 4.40 4.80 5.20 Flour, wheat, 1st grade 7.00 8.00 n iv Millet 5.50 6.00 6.50 Buckwheat 11.00 12.00 13.00 Macaroni 9.00 10.00 11.00 Lump sugar 13.50 15.00 16.50 Beef 28.00 30.00 32.00 Corned beef 62. ,,0 64.00 66.00 Oil, sunflower w eed 28.00 30.00 32.00 Fish, frozen 10.50 12.00 10.50 halt herring 17.00 20.00 17.00 Salt 1.6o 1.60 1.80 Fruits, Milk Products, and Eggs (in rubles) Apples TI -10 Milk (liter) Eggs 8.00-12 00 (ten . 2.50-3 o0 12.00-18.00 . 00-4 3 00 10.00-14.00 16.00-25.00 . . 4.00-5 00 12.00-16.00 . 14.00-18.00 Declassified in Part - Sanitized Copy Approved for Release 2011/10/25: CIA-RDP80-00809A000700100093-6 Declassified in Part - Sanitized Copy Approved for Release 2011/10/25: CIA-RDP80-00809A000700100093-6 Tea,(Georgian (100 gr) Coffee beans (L' kg) Beer (. liter) Ice cream (1::gB) Caviar, soft (1 kg) Vodka, special Moscow (j liter) Article ,Woolen fabric (136 cm wide) Ladies' dresses, cotton Men's suits, part-wool, 2-piece Ladies' dresses, wool Men's suits, wool, 2-piece Shoes, ladies' .Shoes, men's Cigarettes, better grade Laundry soap (60%) Toilet soap Wrist watch, metal Phonograph Camera Quantity Cities Rural Areas 1 meter 450.00 510.00 one 77.00 86.00 one 430.00 450.00 one 510.00 560.00 one 1,400.00 1,500.00 pair 260.00 288.00 pair 260.00 288.00 25 per package 6.30 6.30 400 pr 5.20 5.20 100 gr 4.00 4.00 one 900.00 900.00 one 900.00 ?000.Ca one 1,100.00 It is interesting to compare the above prices with average earnings. Accord- ing to the Fourth Five-year Plan, the average monthly earnings of workers and employees (kolkhoz workers are not included, as their wages are calculated in workdays), were to reach 500 rubles by 1950. On the basis of extensive data, it can be assumed that the average wage of Soviet Yorkers had already reached-that figure in 1947. However, the average wage,.arrived at by dividing, the entire wage fund (de- termined by the state plan in the USSR) by the total number of workers and em- ployees, although very significant, can provide only average data., While there are wages exceeding 500 rubles per month, there are even more that do not reach Declassified in Part - Sanitized Copy Approved for Release 2011/10/25: CIA-RDP80-00809A000700100093-6 Declassified in Part - Sanitized Copy Approved for Release 2011/10/25: CIA-RDP80-00809A000700100093-6 this figure; Therefore, in determining the level of real wages of workers in the USSR, it is. important.to ascertain the lowest wage established by the government, i;e;; the'minimum living wage, as this alone is a true index of the status of. the workers. The Soviet press says nothing about the lowest wage. Only a special pub- lication,,a book entitled Labor Legislation (Zakonodatel'stvo o trude), published by the Juridical Publishing House of the Ministry of Justice USSR, Moscow 1947, contains.a "Commentary" which gives definite indications on this point. On the basis of these indications ittappears that since 16 September 1946, i.e., after the increase of 110 rubles for those receiving up to 300 rubles a month, the min- imum wage of workers and employees, as determined by the government, is 220-225 'rubles, a;month. On the basis of the 8-hour day and the 6-day week prevailing in the USSR, the 1947 prices, converted into hours and minutes of work, together with the monthly wage rates, i.e., an average of 500 rubles, 300 rubles, and a near-min* imua of 250 rubles, give the following picture of the real earnings of the ma- jority of workers and employees in the USSR. In the following table, the minimum and maximum zone prices are used for food products; urban and rural prices are used for manufactured articles. With the help of this table, tuc can determine how a workers' family lives, for example, it consists of four people and the dead of the family earns 500 per month. Rye bread Millet Sunflower seed oil Herring Sugar Total labor 2 kg equal to 2 hr 40 min labor, j kg equal to 1 hr 20 min 100 gr equal to 1 hr 20 min labor 200 gr equal to 1 hr 40 min labor 100 gr equal?to 0 hr 42 min 7":hr 42 min Taking into consideration that there are a number of deductions, such as state-loans, taxes, etc., amounting to about 19 percent of the earnings, there would be nothing left for rent, fuel, or clothing. Cable follows on next page Declassified in Part - Sanitized Copy Approved for Release 2011/10/25: CIA-RDP80-00809A000700100093-6 Declassified in Part - Sanitized Copy Approved for Release 2011/10/25: CIA-RDP80-00809A000700100093-6 hr 40 m hr 00- m hr 4o hr 00 m r 40m 30 m it 50 m 10 m 00 m Article Bread, rye Bread, wheat @uaatitz 1 kg With Earn 500,Ruble 1 hr20m "Bread, wheat, i t grade 1 kg 1 hr 40 m-; 2h Flour, rye Flour. Wheat, 1st grade 1 kg 1 kg r35m 1hr 50m-f 2 hr 55 m Millet 1 kg 2 hr 18 m-2 Buckpheat 1 kg 4 hr 35 m-5 Macaroni 1 kg 3 hr 45 m-4 1kg 5 hr 37 m-6 Beef 1 kg 11 hr 40 m-1: Salted butter 1kg 25 hr 20 m-27 Oil, sunflower seed 1 kg 11 hr 4o m-13 1kg 4 hr 20 m-5 I kg 7 hr 05 m-8: Bait 1 kg 0 hr 4o m-0 1 1 kg 3 hr 20 m-10 1 kg 1 hr 02 m-2 i Eggs 10 kg 4 hr 10m-7h LAdi Declassified in Part - Sanitized Copy Approved for Release 2011/10/25: CIA-RDP80-00809A000700100093-6 Declassified in Part - Sanitized Copy Approved for Release 2011/10/25: CIA-RDP80-00809A000700100093-6 LAdioins page 5 here) Tea 100 gr 6 hr 4o m 11 hr06m 13 hr 20 m Coffee beans 1 kg 30 hr 25 m 50 hr 50 m 6o hr 5o m Beer liter 2 hr 55 m 4hr41m 5hr50m Ice cream 1k3 8hr20m 13 hr53m 16 hr 4o m Cigarettes, better 25 2 hr 37 m 4hr52m grade 5hr14m Laundry soap (60%) 400 gr 2 hr 10 m 3hr37m 4hr20m Toilet soap 100 gr 1 hr 40 m 2hr47m h CO 1 ' 53 , . Caviar, soft i kg 167 hr 50 m 285 hr r20m 3 383 hr C73 , Vodka I liter 25 hr 00 m 41 hr 40 m 50 hr 00 m Woolen fabric, 136 cm. wide 1 meter 188 hr-213 hr 313 hr-354 hr 375 hr-425 hr Ladies' dress, cotton 1 32 hr-36 hr 54 hr-57 hr 64 h4-724 hr Ladies' dress, wool 1 207 hr-233 hr 346 hr-389 hr 415 h 46 h r- 7 r Men's suit, part-wool 1 179 hr-189 hr 297 hr-331 hr 358 hr-375 hr ?den's suit -wool 1 , 584 hr-625 hr 973 hr-]p42 hr 116 h 12 7 r- 50 hr Shoes, ladies 1 pair 108 hr-120 hr 180 hr-200 hr 216 hr-249 hr Shoes, men's 1 pair 108 h r-120 br 180 hr-200 hr 217 hr-240 hr STAT Wrist watch, metal 1 375 hr .625 hr 750 hr Phonograph 1 375 hr 625 hr 750 hr Camera 1 428 hr 764 hr 917 hr Declassified in Part - Sanitized Copy Approved for Release 2011/10/25: CIA-RDP80-00809A000700100093-6