I don't think it can be denied that the Soviet sphere was not a fun place to be during the 30's and 40's - to put it mildy. Why did they fight so hard? Was the propaganda department working in full overtime to convince the people that fascism was far far worse? Was it a genuine sense of pride for the nation despite the problems? Any other factors?
Thank you all in advance.
That's a huge and contentious topic. I have time only for a brief answer - please ask follow-up questions.
I don't think it can be denied that the Soviet sphere was not a fun place to be during the 30's and 40's - to put it mildy.
Sure it can. Depends what and how you compare with. For example, after Revolution of 1917 and following Civil War russian economy and infrastructure was ruined. Living standards plummeted. Deaths from cold, hunger, disease epidemics (cholera, typhoid fever) were a norm. Criminal gangs ruled in many localities. This period of early 20s was called Разруха ~ disrepair, breakdown.
In late 20s and 30s, after political stabilization, economy grew quickly. Unemployment was gone by late 20s. Industrialization, electrification, total education brought tangible benefits to USSR citizens. Radio broadcasting stations, movie theaters popped everywhere - they were used not only for propaganda, but for general education and entertainment too. Literacy rates grew quickly. Career opportunities were unprecedented (vs. Imperial Russia) - a worker could become a member of government in no time (and quickly removed, of course).
Young generation, which grew up after revolution and did not experience life in Imperial Russia experienced only economic growth and improvement over their lifetime. They know no better life and since they saw rapid improvements over their lifetime, they were full of hope. They were used to propaganda and fiery rhetoric of "class struggle" and most of them shrugged instances of political repression (which targeted mostly older generations and mostly high-ranking officials). Most of youths were very loyal to USSR regime. These young people (who were 18-20 in 1941) composed a bulk of front-line troops.
Was the propaganda department working in full overtime to convince the people that
Propaganda works when it based on some reality. As soon as thruthiness drops below certain level people don't buy it anymore.
fascism was far far worse?
And it was - basically, all Slavic people were deemed untermensch by Nazi ideologists. And for jews it meant extermination. There were no recourse and no hope if you are in untermensch category. Whereas in USSR if you "follow party line" (at least formally) and not actively undermining government you could have a decent life.
Note that anti-fascism was strong in USSR - as it was cultivated in 20s and 30s, when fascists in Italy and NSDAP in Germany fought for power with communists of these countries. Naturally, sympathies of USSR citizenry were on communist sides.
Also, USSR supported republicans in Spanish Civil war and Italian/German troops fought for other side. Early atrocities (like bombing of Guernica and later of Coventry) were widely publicized. Many people in USSR actively disliked Molotov-Ribbentrop pact and saw it as temporary, forced measure.
Germans gave plenty of opportunity for propaganda too. Generalplan "Ost" (see [2]) was obtained by soviet intelligence quite early. Atrocities against civilian population and against POWs started almost immediately (e.g. killing on spot of all looking like "Jews and Commissars") and were exploited by GlavPUR very effectively.
Was it a genuine sense of pride for the nation despite the problems?
That - too. Fighting for russian land was considered highest valor and failure to do so or to collaborate to bring in foreign invaders were considered the worst treason - historically, when warring russian dominion allied with outside powers against another russian dominion (like steppe nomads or with western neighbors - e.g. Hungary, Poland) it was always criticized even in official accounts of those involved.
Sources
(russian, PDF, scan) Achievements of USSR in 40 years. Individual level of life.
(online, russian) Мельтюхов М.И. Упущенный шанс Сталина. Советский Союз и борьба за Европу: 1939-1941 = Meltykhov. Stalin's lost chance. USSR and struggle for Europe: 1939-1941, 2000. Many archival documents analyzed and cited
Poprzeczny, Joseph. Odilo Globocnik: Hitler's Man in the East (McFarland: 2004).