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In the strictly Marxist sense, there is not even in Soviet Russia a state socialism but a state capitalism. According to Marx, the social condition "capitalism" does not consist in the existence of individual capitalists, but in the existence of the specific "capitalist mode of production", that is, in the production of exchange values instead of use values, in wage work of the masses and in the production of surplus value, which is appropriated by the state or the private owners, and not by the society of working people. In this strictly Marxist sense, the capitalistic system continues to exist in Russia. And it will continue to exist as long as the masses of people continue to lack responsibility and to crave authority.
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Preface to the Third Edition (August 1942)

 

Wilhelm Reich

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The elimination of individual capitalists and the replacement of private capitalism by state capitalism in Russia has not in the least altered the typical helpless and authoritarian character structure of the masses of people.

 

Wilhelm Reich

 

In point of fact there are a certain number of values and of forces which are of decisive importance in our world civilization: the primacy of production, the continual growth of the power of the State and the formation of the National State, the autonomous development of technics, etc. These, among others — far more than the ownership of the means of production or any totalitarian doctrine — are the constitutive elements of the modern world. So long as these elements continue to be taken for granted, the world is standing still.

 

Jacques Ellul

 

[M]odern capitalism has managed to avert, without changing its fundamental characteristics, practically all the consequences which Marx predicted would result from the basic contradiction between the forces and the relations of production. […] Marx predicted an increasing frequency and gravity of "realization" crises, a spectacular decline of the rate of profit, rising unemployment, Verelendung [impoverishment] of the working class, etc., culminating in an increasingly bitter class struggle that would eventually lead to the overthrow of the entire system by a proletarian revolution. These developments would demonstrate, according to Marx, that production for private gain is inherently contradictory rather than merely the cause of some, in principle resolvable, conflicts and problems. Now, none of these predictions (except perhaps a certain amount of economic concentration) has actually occurred […] there is no independent evidence, apart from Marx's word, to support the claim that capitalism remains contradiction ridden.

 

Karl Marx

 

First, then, State Socialism, which may be described as the doctrine that all the affairs of men should be managed by the government, regardless of individual choice. Marx, its founder, concluded that the only way to abolish the class monopolies was to centralize and consolidate all industrial and commercial interests, all productive and distributive agencies, in one vast monopoly in the hands of the State. The government must become banker, manufacturer, farmer, carrier, and merchant, and in these capacities must suffer no competition. Land, tools, and all instruments of production must be wrested from individual hands, and made the property of the collectivity. To the individual can belong only the products to be consumed, not the means of producing them. A man may own his clothes and his food, but not the sewing-machine which makes his shirts or the spade which digs his potatoes. Product and capital are essentially different things; the former belongs to individuals, the latter to society. Society must seize the capital which belongs to it, by the ballot if it can, by revolution if it must. Once in possession of it, it must administer it on the majority principle, though its organ, the State, utilize it in production and distribution, fix all prices by the amount of labor involved, and employ the whole people in its workshops, farms, stores, etc. The nation must be transformed into a vast bureaucracy, and every individual into a State official. Everything must be done on the cost principle, the people having no motive to make a profit out of themselves. Individuals not being allowed to own capital, no one can employ another, or even himself. Every man will be a wage-receiver, and the State the only wage-payer. He who will not work for the State must starve, or, more likely, go to prison. All freedom of trade must disappear. Competition must be utterly wiped out. All industrial and commercial activity must be centered in one vast, enormous, all-inclusive monopoly. The remedy for monopolies is monopoly.
Such is the economic programme of State Socialism as adopted from Karl Marx.

 

Benjamin Tucker

 

The first act by virtue of which the State really constitutes itself the representative of the whole of society—the taking possession of the means of production in the name of society—this is, at the same time, its last independent act as a State. State interference in social relations becomes, in one domain after another, superfluous, and then dies out of itself; the government of persons is replaced by the administration of things, and by the conduct of processes of production. The State is not “abolished.” It dies out.

 

Friedrich Engels