,*APT] #e 
,/ATE ,CAPITALISM @& ! ,MIX$ ,ECONOMY 

,PEOPLE 3 

,AU?OR 3 ,PAUL ,MATTICK 

,TEXT 3 

,M>X'S ,CAPITAL BE>S ! SUBTITLE ,CRITIQUE ( ,POLITICAL ,ECONOMY TO %[ ?AT IT WAS 9T5D$ AS A CRITIQUE ( CAPITALI/ SOCIETY & ( ! ECONOMIC !ORIES >IS+ \T ( IT4 ,! CRITIQUE IS MADE FROM ! /&PO9T ( ! WORK+ CLASS1 ?AT IS1 FROM ITS PLACE 9 ! PRODUCTION PROCESS1 ON :I* ! CAPITALI/ MODE ( PRODUCTION & ITS LAWS ( MOVEM5T RE/4 ,:5 WORK]S WON ! T5-H\R DAY1 ,M>X HAIL$ ?IS AS A VICTORY ( ! 'POLITICAL ECONOMY ( ! WORK]S1' IMPLY+ ?AT ! OPPOSITION BETWE5 CAPITAL & LABOR DET]M9$ NOT ONLY ! REAL ECONOMIC PROCESSES BUT POLITICAL ECONOMY AS WELL4 ,AS LONG AS ! CLASS /RUGGLE IS F\<T ON ! T]RA9 ( POLITICAL ECONOMY1 IT REMA9S )9 ! CAPITALI/ RELATIONS PRODUCTION4 ,TO BE DONE ) !SE RELATIONS1 ! CAPITAL-LABOR RELATION1 & H5CE POLITICAL ECONOMY1 MU/ BE ABOLI%$4 

,UP TO N[ ! CLASS /RUGGLE HAS BE5 F\<T ON ! T]MS ( POLITICAL ECONOMY4 ,TO PASS BEYOND ?IS LIMITATION REQUIRES A REVOLUTION>Y TRANS=MATION & A CLASSLESS SOCIETY4 ,AS LONG AS ?IS LIMITATION EXI/S1 A PRACTICAL CRITIQUE ( POLITICAL ECONOMY CAN BE BUT P>TLY SUCCESSFUL1 S9CE ! REPRODUCTION ( CAPITAL 9VOLVES ! REPRODUCTION ( ! CLASS & PRODUCTION RELATIONS 9H]5T 9 IT4 ,= ITS CONT9U$ EXI/5CE CAPITAL PRESUPPOSES ACCUMULATION1 :I* ! CLASS /RUGGLE MAY 9FLU5CE BUT CANNOT ABOLI%1 NON-ACCUMULAT+ CAPITAL SIGNALS A /ATE ( CRISIS1 :I* WILL EI!R LEAD TO A REVOLUTION>Y SITUATION OR SET ! /AGE = A NEW PHASE (  ACCUMULATION BY ALT]+ ! CAPITAL-LABOR RELATION1 I4E41 ! RELATION%IP BETWE5 VALUE & SURPLUS VALUE4 ,! DRIVE TO ACCUMULATE DOES NOT PRECLUDE P]IODS ( /AGNATION2 !SE MU/ BE OV]COME1 H[EV]1 IF CAPITAL IS NOT TO SUFF] ITS DEMISE 9 SOCIAL /RUGGLES4 ,UNTIL ?AT HAPP5S ! CLASS /RUGGLE ( POLITICAL ECONOMY IS NOT ONLY ! T]RA9 ON :I* ONE CLASS GA9S VICTORY OV] OR MEETS DEFEAT AT ! H&S ( ! O!R1 IT IS ALSO A DRIV+ =CE ( CAPITALI/ DEVELOPM5T4 ,! R$UCTION ( LABOR TIME ALSO IMPLI$ ! TRANSITION FROM ABSOLUTE TO RELATIVE SURPLUS VALUE PRODUCTION4 ,! RELAT$ 9CREASE 9 LABOR PRODUCTIVITY 9CREAS$ SURPLUS VALUE DESPITE R$UC$ LABOR TIME1 ) ! RESULT ?AT ! PROLET>IAT WAS GRADUALLY ABLE TO IMPROVE ITS LIV+ /&>DS AS CAPITALISM CONT9U$ TO ACCUMULATE4 ,S9CE1 H[EV]1 !RE >E ALSO LIMITS TO ! PRODUCTION ( RELATIVE SURPLUS VALUE1 ACCUMULATION REMA9S SUBJECT TO ! CAPITALI/ CRISIS CYCLE4 

,9 P]IODS ( RAPID CAPITAL EXPANSION1 ! SOCIAL CONTE/ IS RE/RICT$ TO ! /RUGGLE = HI<] WAG]S BETT] WORK+ CONDITIONS1 & A SOCIAL POLICY AGREEABLE TO ! WORK]S4 ,9 A B\RGEOIS DEMOCRACY ! ECONOMIC /RUGGLE ALSO ASSUMES POLITICAL G>B TO OBLIGE ! /ATE TO COMPLY ) ! LIMIT$ 9T]E/S ( ! WORK]S4 ,! WORK ( TRADE UNIONS 9 ! ECONOMIC SPH]E IS COMPLEM5T$ 9 ! POLITICAL SPH]E BY ! ACTIVITY ( POLITICAL LABOR ORGANIZATIONS ?AT SEEK TO 9FLU5CE ! /ATE4 ,AL?\< ! REPRODUCTION ( CAPITALI/ PRODUCTION RELATIONS MAY PRECLUDE ANY FUNDAM5TAL *ANGE 9 SOCIETY1 ! /ATE NONE!LESS /ILL HAS ! MEANS1 OR SO IT SEEMS1 TO 9T]V5E 9 ECONOMIC MATT]S4 ,! CONQUE/ ( /ATE P[]1 !RE=E1 COMM5D$ ITSELF AS AN APPROPRIATE MEANS = TRANS=M+ SOCIETY4 

,= ,M>X ! /ATE WAS AN 9/RUM5T ( CLASS RULE1 :I* 9CLUD$ /ATE FUNCTIONS ?AT1 AL?\< !Y DID NOT DIRECTLY P]TA9 TO SECUR+ ! EXI/+ SOCIAL /RUCTURE1 W]E NONE!LESS DICTAT$ BY ! ASOCIAL *>ACT] ( CAPITALI/ PRODUCTION4 ,IT WAS P>T ( ! FUNCTIONS & TASKS ( ! /ATE TO MA9TA9 ! G5]AL CONDITIONS ( PRODUCTION1 :I* DO NOT NECESS>ILY 5SUE FROM ! COMPETITION AMONG PRIVATE CAPITAL 5TITIES1 & TO SAFEGU>D ! 9T]E/S ( NATIONAL CAPITAL 9 9T]NATIONAL COMPETITION4 ,! DIV]SITY ( /ATE FUNCTIONS GIVES ! APPE>ANCE ?AT ! CONDITION ( ! /ATE IS ONE ( RELATIVE 9DEP5D5CE FROM CAPITAL4 ,9DIVIDUAL CAPITAL 5TITIES >E /ILL SUBJECT TO ! JURISDICTION ( ! /ATE1 :OSE TASK AS AN 9/RUM5T ( CAPITAL 9 G5]AL IS TO SECURE ! ACCUMULATION CONDITIONS ( NATIONALLY ORGANIZ$ CAPITAL 5TITIES & H5CE TO MA9TA9 ! EXPLOITATIVE RELATION%IP BETWE5 CAPITAL & LABOR4 ,S9CE1 H[EV]1 !RE IS NO SU* ?+ AS CAPITAL '9 G5]AL' - IT BE+ NO MORE ?AN ! TOTALITY ( 9DIVIDUAL CAPITALS - CAPITALI/ SOCIETY NE$S ! /ATE TO PROTECT ! 9T]E/S ( ! RUL+ CLASS4 

,! RELATION%IP BETWE5 /ATE & CAPITAL IS BAS$ ON CAPITALI/ RELATIONS ( PRODUCTION1 I4E41 EXPLOITATION4 ,! /ATE SURVIVES ON SURPLUS VALUE1 :E!R DIRECTLY OR 9DIRECTLY APPROPRIAT$4 ,! 9T]E/S ( ! /ATE1 EV5 9 ITS CONDITION ( RELATIVE 9DEP5D5CE1 >E ID5TICAL ) ! 9T]E/S ( CAPITAL4 ,! /ATE ASSUMES EXPLOITATION & H5CE CLASS RELATIONS3 ,9 ! ,M>XIAN S5SE1 !RE=E1 SOCIALISM IMPLIES NOT A SOCIALI/ /ATE BUT 9 FACT ! ABOLITION ( ! /ATE AS A SOCIAL 9/ITUTION4 

,S9CE ! /ATE HAS A %>E 9 ! TOTAL SOCIAL SURPLUS VALUE1 SURPLUS VALUE IS DI/RIBUT$ NOT ONLY BY WAY ( CAPITALI/ COMPETITION BUT ALSO BY POLITICAL MEANS4 ,PLAC+ *ECKS ON /ATE APPROPRIATION ( SURPLUS VALUE HAS ALWAYS BE5 ONE ( ! AIMS ( B\RGEOIS POLITICS4 ,*EAP GOV]NM5TS MEAN BETT] *ANCES = ACCUMULATION4 ,/ILL1 AS CAPITAL ACCUMULAT$ ! /ATE'S %>E 9 SOCIAL SURPLUS VALUE ALSO 9CREAS$3 ! MEANS ( CONTROL OV] ! POT5TIAL DOME/IC 5EMY HAD TO BE EXP&$1 :ILE IMP]IALI/ COMPETITION ABSORB$ EV] GR[+ AM\NTS ( SURPLUS VALUE4 ,BUT S9CE CAPITAL ACCUMULATION ALSO MEANS CONC5TRATION & C5TRALIZATION1 & COMPETITIVE CAPITALISM IS !REBY TRANS=M$ 9TO MONOPOLY CAPITALISM1 AS A RESULT1 IT BECOMES MORE & MORE DIFFICULT TO E/ABLI% ALL AV]AGE RATE ( PR(IT & H5CE TO EFFECT ! ALLOCATION ( \TPUT BY MEANS ( ! M>KET ALONE1 AL?\< IT IS ?IS M>KET ALLOCATION ?AT S]VES AS ! LIFEL9E 5SUR+ ! H>MONY ( 9DIVIDUAL CAPITAL 5TITIES ) TOTAL CAPITAL4 ,MORE & MORE ! TASK ( ALLOCAT+ SURPLUS VALUE BECAME ! OBJECT ( /ATE 9T]V5TIONS 9 ! ECONOMY4 

,IT WAS ?IS SITUATION :I* AT ! TURN ( ! C5TURY PRODUC$ A V]ITABLE EPIDEMIC ( NOTIONS AB\T A /ATE-MONOPOLY ECONOMY = :I* B\NDLESS POSSIBILITIES W]E PROCLAIM$ OR :I*1 ON ! O!R H&1 WAS DECL>$ TO CONTA9 ! SE$S ( ITS [N DE/RUCTION4 ,= ,RUDOLF ,HILF]D+1 = 9/ANCE1 ! CAPITALI/ CONC5TRATION PROCESS WAS T5D+ ULTIMATELY T[>D A 'G5]AL C>TEL' 9 :I* 9DU/RIAL CAPITAL & BANK CAPITAL W\LD BE FUZ$1 LAY+ ! NECESS>Y F\NDATIONS = C5TRAL ECONOMIC PLANN+4 ,! ABOLITION ( COMPETITION BY F9ANCE CAPITAL W\LD BR+ AB\T P]MAN5T ECONOMIC EQUILIBRIUM1 & CAPITALI/ CRISES W\LD BE NO MORE4 ,/ATE CONTROL1 I4E41 ! %\LD]+ ( ! ECONOMY BY ! /ATE1 W\LD !N COMPLETE ! TRANS=MATION ( CAPITALISM 9TO SOCIALISM4 ,S9CE1 H[EV]1 ! B\RGEOIS /ATE IS ! 9/RUM5T ( CAPITAL & ABOLITION ( COMPETITION AT ! NATIONAL LEVEL IS ACCOMPANI$ BY /EPP$-UP COMPETITION 9T]NATIONALLY1 FROM ,HILF]D+'S !ORY1 :I* WAS O!RWISE G5]ALLY ACCEPT$1 ,L59 DREW DIFF]5T CONCLUSIONS4 ,= HIM MOD]N CAPITALISM REPRES5T$ ! M>RIAGE ( ! /ATE ) F9ANCE CAPITAL1 & ?AT WAS ! SITUATION :I* HAD TO BE OV]COME 9 ORD] TO ACCEL]ATE ! ADV5T ( ! SOCIAL REVOLUTION F]M5T+ 9 ! PROCESS ( DIS9TEGRATION IMP]IALISM HAD 5G5D]$ A NEW /ATE1 ITS ROOTS PLANT$ FIRMLY 9 ! DICTATOR%IP ( ! PROLET>IAT1 W\LD !N PROCE$ TO MAKE A SOCIALI/ ECONOMY A REALITY4 

,AL?\< !IR PO9TS ( EMPHASIS DIFF]$1 = ,L59 AS = ,HILF]D+1 ! /ATE WAS ! VEHICLE :]EBY ! TRANSITION FROM CAPITALISM TO SOCIALISM W\LD BE EFFECT$4 ,! T]MS '/ATE CAPITALISM' OR '/ATE SOCIALISM' EA* REF]R$ TO A SITUATION EXI/+ )9 CAPITALI/ SOCIETY & PREC$+ A SOCIALI/ REVOLUTION4 ,ELEM5TS ( /ATE CAPITALISM1 SO W5T ! >GUM5T1 EVOLV$ 9 CONTRADICTION ) B\RGEOIS SOCIETY1 & W]E H5CE TO BE VIEW$ AS SYMPTOMS ( DIS9TEGRATION4 ,!Y SIGNAL$ ! ABOLITION ( PRIVATE CAPITAL )9 A PRIVATE CAPITALI/ ECONOMY & REFLECT$ BO? ! DYNAMIC MOVEM5T ( ! PRODUCTIVE =CES RELATIVE TO /ATIC PROP]TY RELATIONS & ! GR[+ NE$ = DELIB]ATE1 CONSCI\S SOCIALIZATION ( PRODUCTION4 ,BUT TO A*IEVE ?IS TO TRANS=M CAPITALISM %OT ?R\< ) /ATE-CAPITALI/ ELEM5TS 9TO SOCIALI/ SOCIETY  -  PRIVATE [N]%IP ( ! MEANS ( PRODUCTION1 & H5CE WAGE LABOR1 W\LD HAVE TO BE ABOLI%$4 

,ONE MU/ KEEP 9 M9D ! ORIG9AL DI/9CTION BETWE5 /ATE CAPITALISM & SOCIALISM1 ?AT IS1 BETWE5 ! T5D5CY1 UNFOLD+ )9 CAPITALI/ SOCIETY1 T[>D AN 9CREAS+ /ATE PRODUCTION ( SURPLUS VALUE & /ATE 9T]V5TIONS 9 ! M>KET1 ON ! ONE H&1 & ON ! O!R1 SOCIALI/ REVOLUTION1 :I* W\LD ABOLI% ! CAPITAL-LABOR RELATION%IP & EFFECT ! TRANSITION FROM A M>KET ECONOMY TO AN ECONOMY BAS$ ON SOCIAL NE$S4 ,EV5 9 ! EVOLUTION>Y CONCEPTION ( RE=M+1 /ATE CAPITALISM WAS SUPPOS$ TO TRANS=M ITSELF BY MEANS ( ITS [N QUANTITATIVE EXPANSION 9TO ! QUALITATIVELY NEW /ATE ( SOCIALISM4 ,= REVOLUTION>Y SOCIALISM /ATE CAPITALISM WAS ONLY A MODIFICATION ( CAPITALI/ PRODUCTION RELATIONS ?AT ALT]$ NO?+ 9 ITS ANTISOCIALI/ *>ACT]2 CAPITAL HAD TO BE ABOLI%$ 9 ALL ITS =MS4 

,9ITIALLY !SE W]E ONLY SPECULATIONS AB\T ! FUTURE1 S9CE NEI!R /ATE CAPITALISM1 AS A DOM9ANT =M ( SOCIETY1 NOR SOCIALISM EXI/$4 ,!Y GA9$ A MEASURE ( TIMEL9ESS FIR/ ) ! ,RUSSIAN ,REVOLUTION1 :I* F\ND ITSELF CONFRONT$ ) ! PROBLEM ( BUILD+ SOCIALISM4 ,L59 OBS]V$ RI<TLY 5\< ?AT ! SOCIALI/ MOVEM5T HAD NOT DEALT S]I\SLY ) ! QUE/ION (  ! ACTUAL BUILD+ ( SOCIALISM1 NOR 9DE$ C\LD IT HAVE DONE SO1 S9CE IT WAS IMPOSSIBLE TO =ESEE UND] :AT SPECIFIC CONDITIONS ! SOCIAL REVOLUTION W\LD BE A*IEV$4 ,ONE HAD1 !RE=E1 TO />T \T FROM ! SITUATION AS IT WAS GIV51 :I* 9 ! CASE ( ,RUSSIA1 ( C\RSE1 MEANT A SITUATION ( UND]DEVELOP$ CAPITALISM4 ,CONSEQU5TLY !RE C\LD BE NO ?\<T 9ITIALLY ( SOCIALIZATION ( ! MEANS ( PRODUCTION OR ( ! CONDITIONS ( PRODUCTION1 9 ANY EV5T NOT = ! PEASANTRY1 :O W]E CRUCIAL TO ! REVOLUTION2 = ! TIME BE+ ONE C\LD ONLY MAKE USE ( /ATE P[] TO ACCEL]ATE ! PACE ( 9DU/RIALIZATION1 AS IT ALONE WAS ! MEANS BY :I* ! MAT]IAL CONDITIONS = SOCIALISM W\LD BE CREAT$4 ,H[EV]1 ,L59 DID NOT VIEW ! ,RUSSIAN ,REVOLUTION AS AN ISOLAT$ PH5OM5ON1 = HIM IT WAS BUT ONE ASPECT ( A WORLD-WIDE REVOLUTION>Y PROCESS4 ,UNEV5 DEVELOPM5T AMONG NATIONS WAS A FEATURE ( CAPITALISM1 :I*1 ( C\RSE1 DETRACT$ 9 NO WAY FROM CAPITAL'S WORLD DOM9ION4 ,LIKEWISE1 ! UNEV5 DEVELOPM5T ( SOCIALI/ C\NTRIES W\LD NOT1 ACCORD+ TO ,L591 IMP$E ! E/ABLI%M5T ( SOCIALISM ON AN 9T]NATIONAL SCALE2 9 FACT1 IT %\LD EV5 HELP MATT]S1 S9CE ! GREAT MASS ( ! WORLD'S POPULATION C\LD SECURE !IR [N 9T]E/S ONLY BY /RUGGL+ AGA9/ IMP]IALI/IC CAPITALISM4 ,9T]NATIONAL SOLID>ITY WAS ! KEY TO OV]COM+ ! BACKW>DNESS ( ! UND]DEVELOP$ C\NTRIES 9 ORD] !N TO PROCE$ TO ! CON/RICTION ( A WORLDWIDE SOCIALI/ ECONOMY4 

,EXPECTATIONS ( WORLD REVOLUTION ASIDE1 ! CONDITIONS 9 ,RUSSIA1 9AUSPICI\S AS !Y W]E1 REMA9$ ! ,BOL%EVIKS' PO9T ( DEP>TURE 9 !IR =MULATION ( ECONOMIC POLICY4 ,) ! EXCEPTION ( NATIONALIZ+ ! BANKS & =EIGN TRADE1 ! ,BOL%EVIKS 9ITIALLY DID NOT 9T5D TO EXPROPRIATE CAPITAL2 !Y WANT$ TO PLACE IT UND] /ATE CONTROL4 ,L59'S MODEL WAS C5TRALIZ$ CONTROL OV] PRODUCTION @& DI/RIBUTION1 AS EXEMPLIFI$ BY ! ,G]MAN W> ECONOMY DUR+ ,WORLD ,W> #a4 

,BUT NEI!R CAPITALI/S NOR WORK]S W]E PLEAS$ ) ?IS /RATEGY ( RECON/RUCT+ A /ATE-/E]$ ECONOMY4 ,! P]IOD ( 'WORK]S' CONTROL' & CAPITALI/ SABOTAGE MET AN E>LY 5D & =C$ ! /ATE TO EXPROPRIATE ! FACTORIES4 

,WE NE$ NOT GO H]E 9TO ALL ! ZIGS & ZAGS ( ,BOL%EVIK ECONOMIC POLICY1 !Y >E SUFFICI5TLY WELL KN[N4 ,WE %\LD BE CLE>1 H[EV]1 ?AT ?IS POLICY WAS IMPOS$ ON ! ,BOL%EVIKS BY =CE ( CIRCUM/ANCES1 & IT WAS ONLY AFT]W>DS ?AT A !ORETICAL APOLOGY WAS PRODUC$ = IT4 ',H]OIC W> COMMUNISM' AS LONG AS IT LA/$1 WAS ?US PROCLAIM$ ! TRUE WAY TO COMMUNISM2 BUT IT WAS !N D[NGRAD$ TO ! /ATUS ( A TEMPOR>Y EXP$I5CY AFT] IT COLLAPS$4 ,! NEXT /AGE1 ! ,NEW ,ECONOMIC ,POLICY1 :I* P>TIALLY RE/OR$ ! M>KET1 WAS REG>D$1 AT LEA/ BY ,L591 AS A /EP BACKW>D FROM A CONSI/5T POLICY ( SOCIALIZATION1 AL?\< AT ! SAME TIME IT WAS CONSID]$ AN UNAVOIDABLE TRANSITIONAL PHASE FROM CAPITALISM TO COMMUNISM4 ,SOON1 H[EV]1 IT APPE>$ TO BE OB/RUCT+ ?IS TRANSITION & EV5 TO BE CALL+ 9TO QUE/ION ,BOL%EVIK /ATE P[] AS A NECESS>Y PR]EQUISITE = IT4 ,! SOLUTION TO ! PROBLEM LAY1 IT WAS HOP$1 9 ! SACK+ ( ! ,NEW ,ECONOMIC ,POLICY & ! =C$ COLLECTIVIZATION ( AGRICULTURE1 :I* WAS !N TO BE PLAC$ UND] /ATE CONTROL4 ,ONLY !N DID IT BECOME UNMI/AKABLY CLE> :]E ! !ORY & PRACTICE ( ,BOL%EVISM C\LD LEAD4 

,! CONSOLIDATION ( ! NEW SOCIAL ECONOMIC RELATIONS1 :I* HAVE TAK5 !IR PLACE 9 HI/ORY UND] ! NAME ( ,/AL9ISM1 WAS REG>D$ AS A /AGE ALONG ! WAY FROM CAPITALISM TO COMMUNISM & WAS CALL$ SOCIALISM4 ,SOCIALISM WAS A TRANSITIONAL SOCIETY1 IT WAS >GU$1 & AS SU* W\LD /ILL BE PLAGU$ BY MANY ( ! FEATURES ( CAPITALISM2 H[EV]1 IT ANTICIPAT$ MANY ( ! *>ACT]I/ICS ( COMMUNISM AS WELL4 ,9 ! LI/ ( CAPITALI/ FEATURES ?AT HAD NOT YET BE5 OV]COME W]E ! EXI/5CE ( ! /ATE1 ! SOCIAL DIVISION ( LABOR1 & UNEQUAL DI/RIBUTION1 JU/IFI$ ON ! BASIS ( ! NONEQUIVAL5TS ( WORK P]=M$4 ,:AT DI/+UI%$ SOCIALISM FROM CAPITALISM WAS1 FIR/1 ! ABOLITION ( PRIVATE [N]%IP ( ! MEANS ( PRODUCTION &1 SECOND1 ECONOMIC PLANN+4 ,FULL COMMUNISM PRESUPPOS$ WORLD REVOLUTION1 BUT A REAL POSSIBILITY EXI/$ = ! BUILD+ ( SOCIALISM1 AT LEA/ 9 EA* C\NTRY4 ,NOT TO BE ID5TIFI$ ) EI!R CAPITALISM OR COMMUNISM1 SOCIALISM WAS A NEW SOCIAL ORD] ?AT C\LD LEAD TO COMMUNISM1 S9CE SOCIALIZATION ( ! MEANS ( PRODUCTION & CONSCI\S CONTROL ( PRODUCTION & DI/RIBUTION MADE A REVISION TO PRIVATE CAPITALISM IMPOSSIBLE4 ,:ILE 9 ,M>XI/ !ORY IT WAS ! PRODUC]S !MSELVES :O CONTROLL$ ! MEANS ( PRODUCTION 9 ORD] TO PUT !M TO USE SOCIALLY1 9 ,BOL%EVIK !ORY IT WAS ! /ATE1 AS GU>DIAN ( ! 9T]E/S ( ! PRODUC]S :I* HELD ! RE9S ( P[] OV] ! MEANS ( PRODUCTION & ?US OV] PRODUCTION & DI/RIBUTION4 ,! !ORY ( ! POLITICAL P>TY AS REPRES5TATIVE ( WORK]S' 9T]E/S 9 ! SOCIAL REVOLUTION WAS N[ BE+ APPLI$ TO SOCIALISM4 ,! MEANS ( PRODUCTION KEPT ! ATTRIBUTES ( PROP]TY BUT HAD N[ BECOME /ATE PROP]TY1 & PRESUMABLY LAT] W\LD BECOME SOCIAL PROP]TY4 ,! /EP FROM PRIVATE PROP]TY TO /ATE PROP]TY WAS SUPPOS$ TO REPRES5T ! TRANSITION FROM CAPITALISM TO SOCIALISM4 

,A NEW TYPE ( SOCIETY HAD UND\BT$LY COME 9TO BE+4 
,AL?\< NOT COMMUNI/ ACCORD+ TO TRADITIONAL SOCIALI/ CONCEPTIONS1 IT WAS ALSO NOT CAPITALI/ 9 ! TRADITIONAL S5SE4 ,SOCIALISM HAD ALWAYS IMPLI$ ! 5D ( PRIVATE CAPITAL1 & /ATE CONTROL OV] ! MEANS ( PRODUCTION LAID ! GR\NDWORK = ?AT4 ,PRODUCTION RELATIONS >E SOCIAL RELATIONS1 & 9 ! HI/ORICALLY UNFOLD+ RELATION%IP BETWE5 CAPITAL & LABOR1 IT HAD BE5 WORK]S AGA9/ CAPITALI/S4 ,ACCORD+LY ! ABOLITION ( ?IS RELATION%IP LOOK$ LIKE ! 5D ( CAPITALI/ RELATIONS ( PRODUCTION AS WELL1 FROM ! /&PO9T ( ! CAPITALI/S :O HAD BE5 EXPROPRIAT$ BY ! /ATE1 !RE WAS NO D\BT1 AT ANY RATE1 ?AT ! NEW SOCIAL ORD] WAS ID5TICAL ) ! 5D ( CAPITALISM1 :ATEV] NAME1 SOCIALISM OR COMMUNISM1 MI<T BE GIV5 TO IT4 

,FROM ! WORK]S' /&PO9T1 H[EV]1 ESS5TIALLY NO?+ HAD *ANG$4 ,! MEANS ( PRODUCTION1 N[ /ATE PROP]TY1 /ILL ELUDE !IR GRASP4 ,! PRODUC]S >E /ILL WAGE LABOR]S & /ILL HAVE NO 9FLU5CE OV] PRODUCTION & DI/RIBUTION4 ,! H[ & :AT ( PRODUCTION >E /ILL DECISIONS BEYOND !IR CONTROL1 TO BE MADE BY /ATE 9/ITUTIONS1 ! SELF-PROCLAIM$ C>ETAK]S ( ! 9T]E/S ( SOCIETY4 ,BUT SOCIETY REMA9S DIVID$ 9TO A GR\P ( P]SONS ORGANIZ$ UND] ! /ATE :O CONTROL ! CONDITIONS ( PRODUCTION & ! MASS ( ! POPULATION1 :I* MU/ FOLL[ !IR DIRECTIVES4 ,?US ! RELATIONS ( PRODUCTION REMA9 CLASS RELATIONS1 9 :I* ?OSE HOLD+ PRIVILEG$ POSITIONS BY VIRTUE ( !IR CONTROL OV] ! /ATE HAVE ASSUM$ ! FUNCTIONS ( ! EXPROPRIAT$ B\RGEOISIE4 

,= ! EXPROPRIAT$ B\RGEOISIE ?IS NEW TYPE ( SOCIETY1 *>ACT]IZ$ BY /ATE CONTROL OV] ! MEANS ( PRODUCTION1 IS /ATE SOCIALISM OR SOCIALISM PURE & SIMPLE2 = ! WORK]S1 H[EV]1 ! CAPITAL RELATION%IP /ILL P]SI/S & IS FITT+LY DESCRIB$ BY ! T]M '/ATE CAPITALISM'1 AL?\< IDEOLOGICALLY IT TRIES TO PASS ITSELF (F AS SOCIALISM4 ,! EXPROPRIATION ( PRIVATE CAPITAL DI/+UI%ES /ATE CAPITALISM FROM ! /ATE-CAPITALI/ FEATURES ALREADY DISC]NIBLE )9 CAPITALISM4 ,/ATE CAPITALISM1 DISGUIS$ AS SOCIALISM1 PRESUPPOSES A REVOLUTION>Y TRANS=MATION FROM PRIVATE CAPITALISM4 ,! /ATE-CAPITALI/ T5D5CIES ?AT BEG9 TO EM]GE )9 TRADITIONAL CAPITALISM DO NOT EVOLVE GRADUALLY 9TO /ATE CAPITALISM2 A REVOLUTION>Y ABOLITION (  PRIVATE CAPITAL IS REQUIR$4 

,! DE FACTO ABOLITION ( PRIVATE CAPITAL GIVES RISE TO ! ]RONE\S ASSUMPTION ?AT SOCIALIZATION & /ATE APPROPRIATION ( ! MEANS ( PRODUCTION >E ONE & ! SAME ?+4 ,BUT ACCORD+ TO SOCIALI/ !ORY1 ! /ATE IS AN 9/RUM5T ( CLASS RULE1 & !RE=E 9 A CLASSLESS SOCIALI/ SOCIETY IT %\LD BECOME SUP]FLU\S4 ,?OSE C5TRAL AU?ORITIES /ILL NECESS>Y W\LD P]=M ONLY TE*NICAL & ORGANIZATIONAL1 NOT /ATE1 FUNCTIONS & W\LD REMA9 DEP5D5T ON ! DECISIONS ( ! PRODUC]S4 ,?IS CONCEPTION DOES NOT FIT ! /ATE-CAPITALI/ SY/EM4 ,UND] 'SOCIALISM' IT IS ! /ATE ALONE :I* MAKES POLITICAL & ECONOMIC DECISIONS TO F5D (F ! 9T]NAL & EXT]NAL P]ILS YET REMA9+ ALONG ! PA? T[>D COMMUNISM4 ,! /ATE 9 ! TRADITIONAL S5SE W\LD DISAPPE> ONLY 9 ! F> DI/ANT FUTURE1 AFT] ! WORLD REVOLUTION HAD BE5 ACCOMPLI%$ & A COMMUNI/ ECONOMY E/ABLI%$ ?R\<\T ! WORLD4 

,9 'SOCIALI/' PRACTICE IT IS ! /ATE & ! /ATE 9/ITUTIONS CREAT$ BY & SUBORD9ATE TO IT :I* CONTROL PRODUCTION & DI/RIBUTION4 ,! /ATE IS %AP$ BY ! POLITICAL P>TY 9 POSSESSION ( /ATE P[]1 ?AT IS1 BY A PRIVILEG$ /RATUM ( SOCIETY ?AT BELIEVES ITSELF CAPABLE ( REPRES5T+ ! 9T]E/S ( SOCIETY AS A :OLE & ABLE TO DO :AT IS NE$$ TO REALIZE ?OSE 9T]E/S4 ,ITS EXI/5CE & ITS P[] ( DECISION OV] SOCIETY & ITS DEVELOPM5T PRESUPPOSE CONTROL OV] H[ TOTAL \TPUT WILL BE ALLOCAT$ AMONG ! PRODUC]S1 /ATE 9/ITUTIONS1 & ! REQUIREM5TS ( EXPANSION1 I4E41 ! NE$S ( SOCIAL REPRODUCTION4 ,! WAGE SY/EM1 TAXATION1 & ! ADM9I/RATIVE MANIPULATION ( PRICES PLACE A SURPLUS PRODUCT 9 ! H&S ( ! /ATE2 OR 9 O!R T]MS1 ! PRODUC]S >E DEPRIV$ ( CONTROL OV] !IR SURPLUS LABOR1 :I* ! /ATE APPROPRIATES4 ,SURPLUS LABOR1 :I* UND] CAPITALISM APPE>S AS SURPLUS VALUE1 IS ?US APPROPRIAT$ DIRECTLY1 NOT BY ! EX*ANGE ( GOODS1 AL?\< ! WAGE NATURE ( LABOR SU/A9S ! ILLUSION ?AT EX*ANGE RELATIONS /ILL EXI/4 ,S9CE1 H[EV]1 ! 'POLITICAL ECONOMY ( ! WORK]S' IS ABROGAT$ UND] 0AU?ORIT>IAN SOCIALISM10 IT IS ! /ATE ?AT CONT9UES TO DET]M9E SURPLUS LABOR4 

,M>X HIMSELF PO9T$ \T ?AT SURPLUS LABOR IS UNAVOIDABLE1 S9CE ! NE$S ( SOCIETY EXT5D BEYOND ! NE$S ( ! DIRECT PRODUC]S4 ,IT IS NOT ! EXI/5CE ( A SURPLUS PRODUCT1 !RE=E1 :I* DI/+UI%ES CAPITALISM FROM SOCIALISM BUT H[ ?AT PRODUCT IS APPROPRIAT$ SOCIALLY1 & ?AT IS A QUE/ION DECID$ BY CONTROL OV] PRODUCTION4 ,UND] CAPITALISM SURPLUS LABOR APPE>S AS SURPLUS VALUE2 ITS DI/RIBUTION IS REGULAT$ BY COMPETITION & MODIFI$ BY MONOPOLIZATION4 ,S9CE CAPITALI/ PRODUCTION IS CONTROLL$ BY ACCUMULATION1 & ! LATT] MU/ TAKE PLACE UND] COMPETITIVE CONDITIONS1 CAPITAL IS UNABLE TO EX]CISE CONTROL OV] SURPLUS VALUE4 ,ACCUMULATION DOES NOT DEP5D ON CAPITALI/S BUT ON ! MASS ( SURPLUS VALUE1 :I* TO !M IS AN UNKN[N QUANTITY1 9 RELATION TO SOCIAL CAPITAL4 ,! RATE ( PR(IT DET]M9ES ! POSSIBILITY OR IMPOSSIBILITY ( CAPITALI/ ACCUMULATION4 ,IT IS !RE=E NOT ONLY EXPLOITATION OR ! PRODUCTION ( SURPLUS VALUE :I* WEI<S ON ! WORK]S BUT ALSO CAPITAL'S 9H]5T NE$ TO EXP&2 H[EV]1 FROM TIME TO TIME ?IS NE$ CANNOT BE MET1 & ! V]Y EXI/5CE ( ! WORK$1 ! PRODUC]S ( SURPLUS VALUE1 IS PLAC$ 9 JEOP>DY4 ,! CRISIS NATURE ( CAPITALI/ PRODUCTION IS PAT5T PRO( ?AT CAPITALISM CANNOT EV5 SATISFY ITS [N 'SOCIAL' NE$S1 TO SAY NO?+ ( G5U9E HUMAN NE$S4 

,/ATE-CAPITALI/ SY/EMS HAVE1 AT LEA/ 9 !ORY1 ! MEANS TO REGULATE CONSCI\SLY :AT %>E ( SOCIAL PRODUCTION MU/ GO TO ! WORK]S & ! AM\NT ( SURPLUS LABOR TO BE PLAC$ AT ! DISPOSAL ( ! /ATE4 ,AS 9 CAPITALI/ SOCIETY1 ! SIZE ( ! SURPLUS LABOR DEP5DS ON ! %>E ( TOTAL \TPUT PASS$ ON TO ! PRODUC]S4 ,9 CONTRA/ TO CAPITALISM1 H[EV]1 ! USE ( SURPLUS LABOR IS NO LONG] DET]M9$ BY COMPETITION & ! NE$ TO ACCUMULATE BUT BECOMES ! CONSCI\S DECISION ( ! /ATE4 ,REPRODUCTION CAN !RE=E TAKE PLACE 9DEP5D5TLY ( CAPITAL'S 9H]5T NE$ TO EXP&1 IT NO LONG] DEP5DS ON A SPECIFIC MASS ( SURPLUS VALUE OR A SPECIFIC RATE ( PR(IT BUT MAY BE ACCOMPLI%$ ) ANY GIV5 AM\NT ( SURPLUS PRODUCT2 OR1 IF ! SURPLUS PRODUCT IS NOT SUFFICI5T1 REPRODUCTION MAY BE MA9TA9$ AT A /EADY LEVEL )\T ?AT NECESS>ILY CAUS+ A CRISIS4 

,ON ?IS FEASIBLE CONJECTURE RE/S ! BELIEF ?AT A SOCIALI/ /ATE1 :I* REPRES5TS ! G5]AL 9T]E/S1 CAN %APE PRODUCTION & REPRODUCTION 9 SU* A WAY ?AT SURPLUS LABOR BECOMES A P>T ( NECESS>Y LABOR & IS NO LONG] ! PRODUCT ( EXPLOITATION4 ,! /ATE DOES ONLY :AT ! PRODUC]S !MSELVES W\LD DO IF !Y ACT$ ON !IR [N4 ,!Y TOO W\LD HAVE TO CREATE ! 9/ITUTIONS & FACILITIES PR(F]$ !M BY ! /ATE2 IT FOLL[S 'LOGICALLY1' !RE=E1 ?AT ! 9T]E/S ( ! /ATE CO9CIDE ) !  9T]E/S ( ! PRODUC]S4 

,9 A '/ATE-CAPITALI/ MODEL1' MOREOV]1 9 :I* ! /ATE IS ! SOLE EXECUTIVE ORGAN = SOCIETY'S NE$S1 ITS FUNCTIONS W\LD NO LONG] BE /ATE FUNCTIONS2 ! SY/EM W\LD !N CEASE BE+ /ATE CAPITALI/4 ,9 ! PRES5T /ATE-CAPITALI/ C\NTRIES1 ! /ATE1 H[EV]1 DET]M9ES SOCIAL RELATIONS2 IT SETS ITSELF AP>T FROM SOCIETY 9 ORD] TO IMPOSE ITS WILL ON IT4 ,IT IS OBVI\S ?AT ! WILL ( ! /ATE %\LD BE ID5TIFI$ ) ! NE$S ( SOCIETY1 IF ONLY BECAUSE ! /ATE IS DEP5D5T ON IT4 ,?IS DEP5D5CE =CES IT TO ACT AS A /ATE 9 ! TRADITIONAL MANN]1 I4E41 TO EMPLOY CO]CIVE MEANS TO MA9TA9 & SECURE ITS [N MAT]IAL CONDITIONS ( EXI/5CE4 

,! /ATE CONSI/S ( P]SONS :O HOLD ! RE9S ( P[]1 & H5CE CONTROL PRODUCTION & DI/RIBUTION4 ,ONCE ?IS SITUATION EXI/S1 SOCIAL REPRODUCTION MEANS RE-PRODUCTION ( /ATE P[] AS WELL2 & ! GR[? ( SOCIAL WEAL? MEANS1 ( C\RSE1 ! EXPANSION ( ! P[] ( ! /ATE4 ,AS TIME GOES ON IT BECOMES 9CONCEIVABLE ?AT REPRODUCTION C\LD TAKE PLACE O!R ?AN 9 ! EXI/+ SOCIAL RELATIONS1 = ?IS W\LD REQUIRE A FUNDAM5TAL REORGANIZATION ( ! SOCIETY4 ,! DIVISION ( SOCIETY 9TO A M9ORITY ?AT DET]M9ES EV]Y?+ & A MAJORITY ) NO 9FLU5CE SIGNIFIES A CLASS RELATION :I* ! PRIVILEG$ /RATA DEF5D JU/ AS OBDURATELY AS !Y HAVE DONE 9 O!R CLASS SOCIETIES4 

,?IS SITUATION HAS NO?+ TO DO ) AN IMMUTABLE HUMAN 'NATURE' :I* MAY P]MIT ONE ELITE TO TAKE ! PLACE ( ANO!R BUT W\LD NEV] ALL[ ! ABOLITION ( CLASS RELATIONS2 ! PLA9 FACT IS ?AT EV5 9 ! PURPORT$LY 'SOCIALI/' REVOLUTIONS ( ! PA/1 ! TASK ( REORGANIZ+ SOCIETY WAS LEFT TO ! /ATE1 ! P>TY1 & H5CE AN ELITE4 ,! REBELL+ POPULATION ACQUIR$ !IR POLITICAL EXP]I5CE )9 ORGANIZATIONAL =MS ?AT HAD BE5 %AP$ BY ! CLASS NATURE & POLITICAL ECONOMY ( CAPITALI/ SOCIETY &  H5CE C\LD NOT MEASURE UP TO ! REQUIREM5TS ( A CLASSLESS SOCIETY4 ,REVOLUTION>Y  MEANS W]E US$ TO RE=MI/ 5DS1 NAMELY1 REMA9 9 ! H&S ( ! PRODUC]S2 ! E/ABLI%M5T ( A NEW /ATE ) AN AUTONOM\S P[] POSITION MU/ BE PREV5T$4 ,! EXP]IM5TS ( ! C\NCIL COMMUNI/S %[$1 IF ONLY 9 VAGUE =M1 ! DIRECTION ! PROLET>IAT'S /RUGGLE = EMANCIPATION MU/ TAKE1 AL?\< !Y /ILL LACK$ ! CONCRETE BASIS ON :I* TO BR+ ?IS AB\T4 ,BUT :ATEV] ! DIFFICULTIES FAC+ SOCIALISM ! EXI/+ /ATE-CAPITALI/ SY/EMS HAVE PROV5 ?AT !IR WAY1 ANY EV5T1 IS NOT ! WAY TO SOCIALISM4 

,BUT IS /ATE CAPITALISM A NECESS>Y /AGE ( DEVELOPM5T AFT] CAPITALISM - CAN IT NOT BE AVOID$8 ,/ATE CAPITALISM DID1 AFT] ALL >ISE 9 UND]DEVELOP$ CAPITALI/ C\NTRIES - AP>T FROM ?OSE C\NTRIES :I* FELL UND] ! ,RUSSIANS' SPH]E ( 9FLU5CE AS ! SPOILS ( W> & W]E TRIMM$ & TAILOR$ TO CON=M TO ! ,RUSSIAN MODEL ( /ATE CAPITALISM1 ) V>Y+ DEGREES ( SUCCESS4 ,ALL ! SAME1 NOT)/&+ ! FACT ?AT /ATE CAPITALISM WAS IMPOS$ ON !SE C\NTRIES FROM )\T1 !Y DO DEMON/RATE ?AT /ATE-CAPITALI/ PRODUCTION RELATIONS CAN BE IMPLANT$ 9 DEVELOP$ & UND]DEVELOP$ C\NTRIES ALIKE4 ,ALSO1 ! GR[+ TR5D T[>D /ATE 9T]V5TION 9 ! CAPITALI/ C\NTRIES SEEMS TO BE PO9T+ ! WAY T[>D A TRANSITION TO /ATE CAPITALISM1 IF NOT BY WAY ( REVOLUTION !N AT LEA/ ?R\< A P]CEPTIBLE CONV]G5CE ( ! TWO SY/EMS4 

,! UNEV5 DEVELOPM5T AMONG NATIONS1 /RESS$ BY ,L591 )9 ! IMP]IALI/-DOM9AT$ WORLD ECONOMY HAS CREAT$ L9KS BETWE5 ! ANTI-IMP]IALI/ NATIONAL REVOLUTION>Y MOVEM5TS & ! ANTICAPITALI/ MOVEM5TS 9 IMP]IALI/ C\NTRIES4 ,IT HAS ALSO S]V$ TO UND]SCORE ! DIFFICULTIES1 IF NOT ! IMPOSSIBILITY1 ( 9DEP5D5T CAPITALI/ DEVELOPM5T 9 ! COLONIES & 9 O!R UND]DEVELOP$ C\NTRIES4 ,! 9DU/RIAL NATIONS' HEAD />T 9 ACCUMULATION & !IR MONOPOLI/IC POSITIONS )9 ! WORLD ECONOMY SEEM TO PRECLUDE CAPITALI/ DEVELOPM5T BY ! COMPETITIVE R\TE 9 ! BACKW>D & SUPPRESS$ C\NTRIES4 ,SUBORD9AT$ TO ! PR(IT CLAIMS ( ! MAJOR CAPITALI/ P[]S1 ! WAY T[>D 9DEP5D5T 9DU/RIALIZATION & CAPITAL ACCUMULATION WAS ESS5TIALLY B>R$ TO !M4 ,CAPITALI/ DEVELOPM5T1 & ITS H&MAID5 9DU/RIALIZATION1 C\LD BE A*IEV$ ONLY VIA ! POLITICAL R\TE ( NATIONALI/ REVOLUTIONS2 ?AT IS1 NOT ?R\< ! BLEAK & >DU\S PROCESS ( =MATION ( CAPITALI/ PRIVATE PROP]TY1 BUT AS ! \TCOME ( ! CONFRONTATION BETWE5 MONOPOLY CAPITAL & CAPITALI/ MONOPOLY4 

,! ,RUSSIAN ,REVOLUTION TOOK PLACE 9 A BACKW>D CAPITALI/ C\NTRY ) A WEAK B\RGEOISIE2 9DE$1 ,L59 REG>D$ ?IS AS ! REASON :Y IT WAS RELATIVELY EASY TO A*IEVE4 ,BE+ DIRECT$ AGA9/ CAPITALI/ IMP]IALISM1 NATIONAL REVOLUTION>Y MOVEM5TS W]E COMMITT$ TO AN ANTICAPITALI/ IDEOLOGY &1 UND] ! 9FLU5CE ( ,RUSSIAN ,BOL%EVISM1 EQUAT$ !IR /ATE-CAPITALI/ ASPIRATIONS ) ',M>XI/ SOCIALISM'4 ,RUSSIAN ,BOL%EVISM WAS ! PRODUCT ( ! ,EUROPEAN LABOR MOVEM5T & AS SU* SAW ITSELF AS A WORLD1 NOT A NATIONAL1 REVOLUTION>Y MOVEM5T4 

,BUT ! REVOLUTION REMA9$ )9 NATIONAL CONF9ES &1 CRAMP$ AS IT WAS1 BECAME ! MODEL O!R NATIONAL REVOLUTION>Y MOVEM5TS FOLL[$4 ,! IMPORTANT PO9T H]E IS ?AT ?IS EMULATION ( ! ,RUSSIAN EXP]I5CE HAS BE5 ! ID5TIFY+ *>ACT]I/IC ( ALL VIABLE NATIONAL REVOLUTION>Y MOVEM5TS S9CE4 ,/ATE CONTROL OV] NATIONAL PRODUCTION & DI/RIBUTION1 ! IDEA ! ,BOL%EVIKS TOOK FROM ! CAPITALI/ W> ECONOMY1 HAS 9 ANY EV5T BE5 ! PROGRAMMATIC GOAL ( /ATE-CAPITALI/-ORI5T$ C\NTRIES4 

,/ATE 9T]V5TION1 A POLICY =C$ ON CAPITALISM BY ! W>1 WAS US$ BY ! ,BOL%EVIKS TO BUILD UP !IR [N ECONOMIC SY/EM1 BUT ITS SUBSEQU5T FATE HAS HAD POLITICAL & ECONOMIC REP]CUSSIONS ON ! FUR!R C\RSE ( CAPITALI/ DEVELOPM5T4 ,! TOTALIT>IAN /ATE ?AT FL[$ FROM ! DICTATOR%IP ( ! P>TY BECAME ! PROTOTYPE ( ! FASCI/ & NATIONAL SOCIALI/ MOVEM5TS ?AT PUT 9 !IR APPE>ANCE 9 ! AFT]MA? ( ,WORLD ,W> ,I4 ,A TOTALIT>IAN /ATE MAY JU/ AS WELL DEF5D AN ECONOMIC SY/EM BAS$ ON PRIVATE 5T]PRISE4 ,FASCISM & ,NATIONAL ,SOCIALISM ADAPT$ ,BOL%EVIK ME?ODS & ! ,BOL%EVIK P>TY-/ATE TO DEF5D !IR [N 9T]E/S AS WELL AS ?OSE ( PRIVATE CAPITALI/ SOCIETY4 ,9 ! DEFEAT$ & ECONOMICALLY WEAK] C\NTRIES1 IT LOOK$ AS IF ! PO/W> CRISIS HAD CALL$ 9TO QUE/ION ! V]Y EXI/5CE ( CAPITAL4 

,S9CE1 H[EV]1 ! ,RUSSIAN ,REVOLUTION DID NOT SPREAD ACROSS ,EUROPE1 ! CRISIS SITUATION REQUIR$ NATIONAL SOLUTIONS )9 ! FRAMEWORK ( ! CAPITALI/ WORLD ECONOMY4 ,! NATIONAL SOLUTION1 LIKE ! W> ECONOMY BE=E IT1 C\LD NOT BE LEFT TO ! AUTOMATIC WORK+S ( ! M>KET BUT REQUIR$ MAJOR 9T]V5TIONS 9 ! ECONOMY1 :I* ( C\RSE MEANT EXP&+ & /R5G!N+ ! P[]S ( ! /ATE4 

,:5 ! PO/W> CRISIS DEVELOP$ 9TO A G5]AL CRISIS ( CAPITALISM RA!R ?AN 9TO A NEW WORLDWIDE BOOM1 ! B\RGEOIS LIB]AL OR 'DEMOCRATIC' C\NTRIES W]E !MSELVES =C$ TO EMPLOY EXTREME /ATE MEASURES TO COPE ) ! SOCIAL HAZ>DS CREAT$ BY ! CRISIS4 ,! FASCI/ C\NTRIES PURSU$ ! PA? ( ,BOL%EVISM1 & ! 'DEMOCRATIC' NATIONS FOLL[$ SUIT TO HELP EMBATTL$ CAPITALI/ PRODUCTION RELATIONS ?R\< ! CRISIS4 ,H[EV]1 9 ! DEMOCRATIC /ATES !RE WAS NO NE$ TO PUT AN 5D TO ! 'POLITICAL ECONOMY ( ! WORK]S' 9ASMU* AS !Y W]E ABLE TO EMPLOY O!R MEANS TO PUT ?R\< ! ECONOMIC POLICIES !Y ?\<T NECESS>Y4 ,! FASCI/ T5D5CIES 9 !SE C\NTRIES W]E ?US UND]CUT & C\LD NOT EXPLOIT ! CRISIS = !IR [N 5DS4 ,/ATE 9T]V5TIONISM ?US RANG$ OV] A WIDE FIELD3 FROM ! DIRECT TAKEOV] ( ! MEANS ( PRODUCTION BY ! ,BOL%EVIKS1 TO FASCI/ USE ( ! /ATE TO SU/A9 CAPITALI/ PRODUCTION RELATIONS1 & F9ALLY TO /ATE /E]+ ( ! BUS9ESS CYCLE BY ! 9DIRECT MEANS ( MONET>Y & FISCAL POLICIES4 

,! 'PURELY ECONOMIC' ANTICYCLIC MEASURES ( ! DEMOCRATIC C\NTRIES W]E1 ( C\RSE1 ALSO P>T & P>CEL ( FASCI/ ECONOMIC POLICY2 BUT 9 ! P>TY DICTATOR%IPS ( ! TOTALIT>IAN /ATES1 !Y W]E COMPLEM5T$ BY POLITICAL ACTION 9 ! DOME/IC SPH]E AS WELL AS 9 =EIGN POLICY4 ,DICTATOR%IP AS A MEANS TO C>RY ON CAPITALI/ PRODUCTION RELATIONS IS OBLIG$ TO SUBS]VE ! EXPANSIONI/ NE$S ( /ATE CAPITAL1 ) NEW IMP]IALI/ CONFLICTS ! 9EVITABLE RESULT4 ,IT WAS ! REP]CUSSIONS ( FASCISM ON =EIGN POLICY ?AT TR\BL$ ! VICTORS ( ,WORLD ,W> ,I1 NOT ITS DOME/IC POLICIES1 :I* 5JOY$ !IR SIL5T APPROVAL4 ,AL?\< CAPITALI/ ECONOMI/S N[ SAW ?AT ! M>KET ME*ANISM WAS NOT CAPABLE ( COP+ ) ! CRISIS1 !RE WAS NO QUE/ION ( !IR SITT+ BACK PASSIVELY AS !Y WAT*$ SOCIAL UNRE/ GR[ AFT] ! W>1 S9CE ! ,BOL%EVIK EXP]IM5T & FASCISM W]E PRACTICAL PRO( 5\< ?AT UND] V]Y DIFF]5T CONDITIONS 7& NOT ONLY UND] SOCIALISM1 I4E41 /ATE CAPITALISM71 ! EFFECTS ( CRISIS1 E4G41 UNEMPLOYM5T & IDLE MEANS ( PRODUCTION1 C\LD BE COMBAT$ IF ! /ATE W]E WILL+ TO TAKE ! APPROPRIATE MEASURES4 

,ACCORD+ TO ! M>KET !ORY1 :I* ?\< FALSE IS NONE!LESS NE$$ BY CAPITAL1 CRISIS WAS ROOT$ 9 A LACK ( EFFECTIVE DEM&1 :I* 9 TURN HAD ITS ORIG9S 9 CAPITALI/ GR[? ITSELF4 ,9 ?IS VIEW1 ( C\RSE1 CONSUMPTION DET]M9ES PRODUCTION1 FROM :I* IT FOLL[S ?AT AN 9CREAS+ SATURATION ( CONSUM] NE$S MU/ RESULT 9 A SLACK5+ ( PRODUCTION & H5CE A DECL9E 9 9VE/M5TS4 ,! CONSEQU5CE IS UNEMPLOYM5T & IDLE CAPITAL4 ,9 B\RGEOIS !ORY ! M>KET & PRICES FUNCTION AS EQUILIBRIUM ME*ANISMS1 9 :I* EA* PRODUCTION FACTOR IS GU>ANTE$ ITS %>E ( TOTAL PRODUCTION1 ACCORD+LY ! DILEMMA ( CRISIS CANNOT BE RESOLV$ ?R\< R$I/RIBUTION LE/ ?IS BE AT ! CO/ ( CAPITAL RETURNS1 :I* W]E ALREADY ON ! DECL9E1 FUR!R UND]CUTT+ ! PROP5SITY TO 9VE/4 ,! M>KET1 !RE=E1 CANNOT BE EXPECT$ TO G5]ATE ! DEM& REQUIR$ = FULL EMPLOYM5T2 ?AT DEM&1 RA!R1 MU/ BE CREAT$ FROM )\T1 ?R\< /ATE-9DUC$ PUBLIC DEM&1 & ADD$ TO G5]AL DEM&4 

,/ATE-9DUC$ PUBLIC DEM& C\LD NOT1 H[EV]1 BE F9ANC$ BY TAXATION1 S9CE ?IS W\LD HAVE R$UC$ M>KET DEM&1 ALREADY 9SUFFICI5T1 EV5 MORE4 ,?US1 AS 9 W>TIME1 DEFICIT F9ANC+1 ! EXPANSION ( /ATE CR$IT1 WAS ! ANSW]4 ,BY MEANS ( GOV]NM5T LOANS & !IR USE = PUBLIC WORKS1 IDLE CAPITAL WAS BR\<T BACK 9TO ! CAPITALI/ CIRCULATION PROCESS TO BOO/ TOTAL PRODUCTION4 ,! RESULT ( ?IS1 ( C\RSE1 WAS A GR[+ /ATE DEBT1 :I*1 H[EV]1 WAS NOT CONSID]$ A BURN+ PROBLEM AS LONG AS TOTAL PRODUCTION GREW AT A FA/] RATE ?AN ! 9T]E/ BURD5 ON IT4 

,9 CONTRADICTION TO B\RGEOIS CONSUMPTION !ORY1 :I* PROJECTS ! 9EVITABLE COLLAPSE ( ! M>KET SY/EM1 /ATE ECONOMIC 9T]V5TION BY WAY ( 9DUC$ PUBLIC DEM& WAS SE5 AS AN ANTICYCLIC POLICY ?AT W\LD MA9TA9 - OR RE/ORE - M>KET EQUILIBRIUM4 ,YET IT IS PAT5T ?AT CAPITAL ACCUMULATION PRECLUDES EQUILIBRIUM BETWE5 SUPPLY & DEM& 9 T]MS ( AN EQUIVAL5CE ( PRODUCTION & CONSUMPTION4 ,9 A CAPITALI/ ECONOMY GOOD TIMES ) FULL EMPLOYM5T >E POSSIBLE ONLY AS A RESULT ( CAPITAL EXPANSION 9 PURSUIT ( PR(ITS4 ,:5 !RE IS NO ACCUMULATION1 9SUFFICI5T DEM& IS A P]MAN5T CONDITION4 ,IT IS NOT 5\<1 !RE=E1 M]ELY TO EXP& PRODUCTION & TO ADJU/ DEM& TO SUPPLY4 ,= ACCUMULATION TO TAKE PLACE1 ! PR(ITABILITY ( CAPITAL MU/ BE IMPROV$4 ,ITS [N /ATIC !ORY NOT)/&+1 9 ! REAL ECONOMIC PROCESS B\RGEOIS ECONOMICS IS ALSO OBLIG$ TO PROPOSE /ATE-9DUC$ DEM& TO G5]ATE AN ADDITIONAL DEM& 9 ORD] TO EXP& ! M>KET4 

,/ATE ECONOMIC POLICY WAS SUPPOS$ TO PREV5T ! MAJOR ECONOMIC UPS & D[NS1 I4E41 CRISES AS WELL AS BOOMS1 :I* UND]M9E ! ECONOMIC EQUILIBRIUM4 

,9 ADDITION TO ! MANIPULATORY MEASURES ( EXP&+ OR CONTRACT+ PUBLIC DEM&1 MONET>Y POLICY1 I4E41 ! EXPANSION OR CONTRACTION ( CR$IT BY MEANS ( 9CREAS+ OR R$UC+ ! MONEY SUPPLY & BY ALT]+ 9T]E/S RATES1 WAS SUPPOS$ TO HAVE A REGULATORY EFFECT ON ! ECONOMY4 ,! 9/RUM5TS ( /ATE 9T]V5TION 9 A MODIFI$ M>KET ECONOMY >E TOO WELL KN[N TO REQUIRE FUR!R DISCUSSION H]E1 BUT TOGE!R !Y SPELL :AT HAS COME TO BE KN[N AS A 'MIX$ ECONOMY1' VAUNT$ AS ! SOLUTION TO ! PROBLEM ( CAPITALI/ CRISES4 

,! IDLE CAPITAL MADE AVAILABLE TO ! /ATE BY MEANS ( LOANS REPRES5TS AN ALREADY EXI/+ SURPLUS VALUE ?AT HAD NOT BE5 PUT TO USE AS FUR!R PR(IT-G5]AT+ CAPITAL4 ,IT PUTS IDLE PEOPLE & PLANT TO WORK2 ! RESULT+ PRODUCT IS NOT SOLD ON ! M>KET BUT MAT*ES ! VALUE ( ! /ATE'S LOANS4 ,9 ?IS WAY MONEY CAPITAL IS 'CONSUM$' & H5CE CAN NO LONG] BE REG>D$ AS A P>T ( ! MASS ( SURPLUS VALUE AVAILABLE TO CAPITAL = PURPOSES ( ACCUMULATION4 ,H]E CAPITALI/ SOCIETY PRODUCES NOT 9 ACCORDANCE ) ITS [N NE$S BUT 9 ACCORDANCE ) ITS [N FALSE !ORY1 I4E41 IT PRODUCES = CONSUMPTION1 IF ONLY PUBLIC CONSUMPTION4 ,9 ?AT EV5T1 H[EV]1 ?IS TYPE ( PRODUCTION IS NO LONG] CAPITALI/ PRODUCTION1 BUT ! EMPLOYM5T ( AN ANTICAPITALI/ MODE ( PRODUCTION POSSIBLE ONLY 9 EXCEPTIONAL CASES1 NEV] AS ! RULE4 

,! EXPANSION ( /ATE CR$IT1 LIKE ANY O!R =M ( CR$IT EXPANSION1 C>RIES ) IT AN 9FLATION>Y TR5D :I*1 H[EV]1 CAN TO SOME EXT5T BE CONTROLL$ AT ! PRICE ( LIMIT+ /ATE-9DUC$ PRODUCTION1 A G5]AL CONTRACTION ( CR$IT1 & ! COOL+-(F EFFECT ?IS HAS ON ECONOMIC ACTIVITY4 ,A 'MIX$ ECONOMY1' !RE=E1 T5DS T[>D ITS [N DISSOLUTION1 & CAPITAL IS ONCE AGA9 PLAC$ AT ! M]CY ( ITS [N CRISIS CYCLE4 ,! !ORY ?AT BOA/$ ( HAV+ MA/]$ ! PROBLEM ( CRISIS ITSELF HAS A NEW CRISIS ON ITS H&S 9 :I* ! 9/RUM5TS ( A MIX$ ECONOMY >E NOT ONLY ( NO USE BUT 9DE$ EV5 HELP TO DEEP5 ! CRISIS4 ,9/EAD ( A*IEV+ FULL EMPLOYM5T1 EV5 ) ITS 9FLATION>Y T5D5CY1 BY MONET>Y & FISCAL POLICIES & PUBLIC SP5D+1 !RE >ISE NEW PROBLEMS TO BE DEALT )3 RIS+ UNEMPLOYM5T1 PRECIPIT\S ECONOMIC DECL9E1 & A RIS+ RATE ( 9FLATION4 ,9FLATION CAN BE *ECK$1 BUT ONLY AT ! PRICE ( MORE UNEMPLOYM5T2 & IF ONE TRIES TO REM$Y UNEMPLOYM5T1 ! PRICE IS MORE 9FLATION1 :I* UND]M9ES BO? ! NATIONAL & 9T]NATIONAL ECONOMIES4 ,9 ! FACE ( ?IS DILEMMA1 ! PROPON5TS ( A LIMIT$ ECONOMY CAME UP ) ! IDEA ( US+ MORE DIRECT MEANS TO CONTROL ! BUS9ESS CYCLE1 I4E41 MEANS SU* AS >E US$ 9 ! /ATE-CAPITALI/ C\NTRIES4 ,NOT )\T SOME JU/IFICATION1 !RE=E1 HAS ?IS BE5 REF]R$ TO AS 'CREEP+ SOCIALISM' 9 CAPITALI/ CIRCLES1 :I* EQUATE /ATE CAPITALISM ) SOCIALISM4 

,/ATE-9DUC$ PRODUCTION IS ALSO REF]R$ TO AS NATIONALIZATION1 & ACCORD+LY /ATE P>TICIPATION 9 ! ECONOMY & NATIONALIZATION ( PRIVATE 5T]PRISES GIVE ! APPE>ANCE ( BE+ 'SOCIALI/' MEASURES CAPABLE ( EFFECT+ A FUNDAM5TAL1 IF SL[1 TRANS=MATION ( SOCIETY4 ,AS MORE & MORE 9DU/RIES >E NATIONALIZ$1 ! MEANS ( PRODUCTION1 N[ /ATE PROP]TY1 W\LD BELONG TO ! NATION & ! M>KET ECONOMY W\LD COME TO AN 5D )\T REVOLUTION4 ,?IS ?\<T IS GIV5 FUR!R SU/5ANCE BY ! FACT ?AT :OLE 9DU/RIES HAVE1 9DE$1 BE5 NATIONALIZ$1 AL?\< 9 ! CAPITALI/ M>KET ECONOMIES :]E ?IS HAS TAK5 PLACE1 IT HAS SO F> ALT]$ NO?+4 ,9 ! ADVANC$ CAPITALI/ C\NTRIES IT HAS = ! MO/ P>T BE5 UNPR(ITABLE 9DU/RIES OR FACTORIES :I* ! /ATE HAS TAK5 OV] OR SUBSIDIZ$1 OR NEW 5T]PRISES ?AT C\LD ONLY BE />T$ ) /ATE SUPPORT & ?AT (T5 GAVE RISE TO SOME 9TRICATE CONCOCTIONS ( PUBLIC & PRIVATE CAPITAL4 ,/ILL1 9 !SE C\NTRIES PRIVATE CAPITAL REMA9$ DOM9ANT1 ! ELEM5T >\ND :I* /ATE ECONOMIC POLICY TURN$4 

,JU/ AS ! DE/RUCTION ( CAPITAL CAN CONTRIBUTE TO A NEW UPSW+ BY =C+ CAPITALI/ REORGANIZATION1 PUBLIC SP5D+1 :I* RE/S ON UNPR(ITABLE PRODUCTION1 MAY BE SE5 AS A C\NT]VAIL+ T5D5CY TO CAPITAL'S [N 9H]5T T5D5CY T[>D DIS9TEGRATION4 ,CAPITAL EXPANSION IMPLIES CAPITAL DE/RUCTION2 /ILL1 EV]Y NEW ACCUMULATION PHASE MU/ SURPASS ! PREVI\S ONE IF A R5EW$ UPSW+ IS TO BEG94 ,H[ LONG ?IS K9D ( CAPITALI/ REPRODUCTION CAN GO ON CANNOT BE ASC]TA9$ A PRIORI FROM !ORETICAL CONSID]ATIONS ALONE2 ! ANSW] MU/ AWAIT EMPIRICAL OBS]VATION ONCE ! T5D5CIES WORK+ AGA9/ CAPITALISM'S DECL9E %[ !IR ULTIMATE 9EFFECTIV5ESS4 

,ACCUMULATION1 :I* IS A NECESS>Y CONDITION = A CAPITALI/ ECONOMY1 CANNOT BE REPLAC$ BY /ATE FUNCTIONS 9 A 'MIX$ ECONOMY4' ,EXP&+ PRODUCTION ALONE DOES NOT G5]ATE PR(IT2 = PRODUCTION TO YIELD PR(IT IT MU/ TAKE PLACE ALONG )1 & 9 SPITE (1 /ATE-9DUC$ PRODUCTION IF A /ATE ( PSEUDO-PROSP]ITY IS EV] TO BE OV]COME 9 FAVOR ( A REAL BOOM4 ,IF ?IS IS NO LONG] POSSIBLE1 SOON] OR LAT] ! CRISIS-ALLEVIAT+ EFFECT ( /ATE-9DUC$ PRODUCTION MU/ BECOME BLUNT$ & ! CRISIS FL>E UP ANEW4 ,ANY FUR!R EXPANSION ( /ATE DEM& W\LD !N DO NO MORE ?AN ADD /EAM TO ! DIS9TEGRATION ( ! PRIVATE SECTOR ( ! ECONOMY1 UNTIL F9ALLY ! POSSIBILITY ( ANY FUR!R ACCUMULATION W\LD CEASE TO EXI/4 ,/ATE ECONOMIC 9T]V5TION IS ?US A TWO-$G$ SWORD1 & !RE) SETS ITS [N LIMITS2 YET IF IT /AYS )9 !SE LIMITS1 ! /ATE ( PSEUDO-PROSP]ITY IT HAD BE5 ABLE TO A*IEVE MU/ ULTIMATELY REV]T TO OBVI\S CRISIS4 

,A MIX$ ECONOMY IS A TOK5 ( CAPITALI/ DECAY1 NOT A NEW =M ( CAPITALI/ PRODUCTION RELATIONS1 AS IS ! CASE ) /ATE CAPITALISM4 ,! DOM9ANT POSITION 5JOY$ BY PRIVATE CAPITAL1 ! 9DIRECT ME?ODS US$ TO MANAGE ! ECONOMY1 ! RE/RICTION ( /ATE-9DUC$ PRODUCTION TO PUBLIC CONSUMPTION1 & ! RET5TION ( MONOPOLI/IC COMPETITION - ALL !SE ?+S TOGE!R ADD UP TO ! FACT ?AT 9 A MIX$ ECONOMY ! /ATE IS /ILL A /ATE ( PRIVATE PROP]TY :I* IT IS ! /ATE'S TASK TO DEF5D4 ,ONE CANNOT EXPECT SU* A /ATE TO MAKE ! /EP FROM MIX$ ECONOMY TO /ATE CAPITALISM ON ITS [N2 YET )\T ?IS /EP IT MU/ CONT9UE TO OBEY ! LAWS ( CAPITALI/ PRODUCTION1 ) NO *ANCE ( REALLY CONTROLL+ ! ECONOMY AS REQUIR$4 ,IT CAN LET A CRISIS RUN ITS C\RSE1 OR IF SURPLUS VALUES RESEATS >E AVAILABLE1 IT CAN TRY TO EMPLOY /OP-GAP MEASURES TO KEEP SOCIAL UNRE/ AT A M9IMUM2 BUT IT CANNOT P]MAN5TLY CONT9UE TO EXP& PR(ITLESS PRODUCTION ?R\< 9FLATION>Y /ATE CR$ITS )\T DE/ROY+ PR(IT-YIELD+ PRODUCTION 9 ! PROCESS4 

,IT IS ( C\RSE TRUE ?AT ! ECONOMIC 9TEGRATION ( /ATE & CAPITAL CANNOT BE REV]S$4 ,PRIVATE CAPITAL HAD ULTIMATELY TO CALL ON ! S]VICES ( ! /ATE IF IT WAS TO CONT9UE TO EXI/1 :ILE ! /ATE MU/ RELY ON PRIVATE CAPITAL 9 EX]CIS+ ITS ECONOMIC FUNCTIONS4 ,ONCE EFFECT$1 9TEGRATION PRECLUDES ! /ATE'S EMPLOY+ AN ECONOMIC POLICY CONTR>Y TO ! 9T]E/S ( PRIVATE CAPITAL OR ITS EXPROPRIAT+ PRIVATE CAPITAL TO !REBY ASSUME SOLE CONTROL OV] ! ECONOMY4 ,MIX$ ECONOMIES1 ) OR )\T 'SOCIALI/' GOV]NM5TS1 N[ AS 9 ! PA/ >E PAT5T PRO( ?AT 9 A MIX$ ECONOMY ! /ATE /ILL BELONGS TO PRIVATE CAPITAL1 :I* PRECLUDES 9 ADVANCE ! TRANSITION TO /ATE CAPITALISM4 

,IT CAN NO LONG] BE MA9TA9$ ?AT ECONOMIC MANAGEM5T BY ! /ATE WILL MAKE = /ABLE CAPITAL DEVELOPM5T OR PREV5T CRISES2 ! ROLE ( ! /ATE1 !RE=E1 9 A MIX$ ECONOMY IS GRADUALLY :ITTL$ D[N AGA9 TO ! TASKS IT HAS ALWAYS P]=M$1 NAMELY1 ! USE ( CO]CION TO MA9TA9 EXI/+ R$UCTION RELATIONS4 ,) /ATE 9T]V5TIONS 9TO ! M>KET ME*ANISM 9EFFECTIVE1 & ! 9FLAT$ /ATE SECTOR 7LIKE ! /ATE ITSELF7 ONLY A BURD5 ACCEL]AT+ CAPITALI/ DECL9E1 A MIX$ ECONOMY REV]TS TO COMMONPLACE CAPITALISM4 ,! V]Y EXI/5CE ( SU* A SWOLL5 /ATE APP>ATUS REQUIRES SOME CUTBACK 9 /ATE-9DUC$ PRODUCTION 7IF ONLY TO SECURE ! /ATE'S [N %>E 9 ! SURPLUS VALUE71 & PURSUANT TO ?IS 5D1 ! /ATE BEG9S MAK+ DECISIONS MEANT TO 9CREASE PR(IT & PROMOTE ACCUMULATION4 

,AT ?IS PO9T ! /RUGGLE OV] ECONOMIC POLICY %>P5S2 CAPITAL DEM&S AN 5D TO ALL /ATE POLICIES CUTT+ 9TO SURPLUS VALUE1 :ILE ! VICTIMS ( !SE POLICIES CALL = 5L>G+ ! ECONOMIC P[]S ( ! /ATE 9 ! DIRECTION ( /ATE CAPITALISM4 ,BUT S9CE /ATE CAPITALISM REQUIRES A REVOLUTION1 ?AT =M IS NOT PRECISELY ON ! ORD] ( ! DAY4 ,9 ! CAPITALI/ C\NTRIES REVOLUTION>Y ,M>XISM-,L59ISM IS TODAY TOTALLY RE=MI/ &1 MOREOV]1 SEES ITSELF AS SU*2 IT HAS = ! TIME BE+ %ELV$ ! GOAL ( /ATE CAPITALISM1 NOT ONLY TO PROTECT ! EXI/+ /ATE-CAPITALI/ SY/EMS FROM CONVULSIONS BUT ALSO TO MEET ! EV] GREAT] NE$S ( ! COMMUNI/ P>TY BUREAUCRATS4 ,NOT ONLY1 !N1 IS ! POSSIBILITY ( /ATE CAPITALISM ITSELF LIMIT$ BY ! EXI/+ P[] RELATIONS BETWE5 ! CLASSES DOME/ICALLY & AMONG NATIONS WORLDWIDE2 WE EV5 F9D ?AT /ATE-CAPITALI/ PR9CIPLES BECOME ADULT]AT$ )9 /ATE CAPITALISM ITSELF & )9 ! 'SOCIALI/' MOVEM5TS ?AT HAVE CA/ !IR LOT ) IT4 

,/ATE CAPITALISM1 CLAD 9 ! BANN] ( 'SOCIALISM1' APPE>$ TO BE FUNDAM5TALLY IRRECONCILABLE ) ! CAPITALI/ WORLD4 ,BUT = REASONS ?AT WE %ALL NOT GO 9TO H]E1 CAPITALISM WAS NO MORE ABLE TO DE/ROY /ATE CAPITALISM ?AN /ATE CAPITALISM WAS ABLE TO REMAKE ! WORLD 9 ITS [N IMAGE4 ,! COEXI/5CE ( ! TWO SY/EMS WAS A FACT LONG BE=E IT WAS ACCEPT$ & PUT TO PRACTICAL ADVANTAGE BY EI!R SIDE4 ,JU/ AS P]FECT COMPETITION HAS ALWAYS BE5 BUT A !ORETICAL CON/RUCT & HAS NEV] DESCRIB$ CAPITALISM AS IT REALLY EXI/$1 SO TOO IS PURE /ATE CAPITALISM AN AB/RACTION HAV+ LITTLE TO DO ) HI/ORICAL /ATE CAPITALISM4 ,9 EI!R CASE REALITY PROVID$ ONLY A R\< APPROXIMATION ( ! FEATURES :I* !ORY HAD MAPP$ \T 9 RELIEF1 & EV5 !SE R\< APPROXIMATIONS V>I$ 9 APPROPRIAT5ESS DEP5D+ ON ! BROAD] SETT+ 9 :I* ! SY/EMS W]E SITUAT$4 ,BECAUSE /ATE CAPITALISM C\LD NOT ISOLATE ITSELF FROM ! WORLD M>KET & FROM WORLD POLITICS1 IT WAS DEPRIV$ FROM ! \TSET ( AN 9T5D$ FEATURE ?AT DI/+UI%$ IT FROM O!R SY/EMS1 NAMELY1 ECONOMIC PLANN+1 :I*1 AL?\< ATTEMPT$1 REMA9$ UND] ! 9FLU5CE ( PROCESSES TAK+ PLACE 9 ! CAPITALI/ WORLD >\ND IT4 ,JU/ AS ! PRODUCTION 'PLANN+' ( 9DIVIDUAL FIRMS /&S 9 %>P CONTRA/ TO ! AN>*Y REIGN+ 9 ! ECONOMY ( ! CAPITALI/ SY/EM SE5 AS A :OLE1 UND] /ATE CAPITALISM NATIONAL PLANN+ TAKES PLACE )9 A PLANLESS WORLD ECONOMY1 & ITS EFFECTIV5ESS IS MADE AS QUE/IONABLE ON ?AT ACC\NT AS ! 'RATIONAL' EF=TS ( ! 9DIVIDUAL 5TREPR5EUR >E UND]M9$ BY ! UNCONTROLLABLE M>KET ECONOMY4 ,?US EV5 /ATE-CAPITALI/ NATIONS COME UND] ! SWAY ( CAPITALISM'S ECONOMIC CYCLES1 & = ?IS REASON !Y TOO >E 9T]E/$ 9 MA9TA9+ A RELATIVE /ABILITY ON ! WORLD M>KET SO AS NOT TO JEOP>DIZE BEYOND MEASURE !IR [N PLAN-BAS$ ECONOMIES4 

,BUT ?\< !RE MAY1 9DE$1 BE A G5]AL DESIRE = SOCIAL /ABILITY1 ?IS IS NOT 5\< TO ABOLI% ! LAWS ( MOTION ( CAPITALI/ SOCIETY4 ,! WILL+NESS TO COEXI/ PEACEABLY ALT]S NO?+ 9 ! EXPANSION NE$S ( CAPITAL & !REBY 9 ! IMP]IALI/IC RIVALRIES BETWE5 DIFF]5T CAPITALI/ SY/EMS4 ,! EXPANSION ( /ATE CAPITALISM DIM9I%ES ! EXPANSION ( PRIVATE CAPITAL1 JU/ AS PRIVATE CAPITAL ACCUMULATION HAS AN UNAVOIDABLE 9FLU5CE ON PLANN+ 9 ! /ATE-CAPITALI/ SY/EM1 & 9DE$ EV5 OBLIGES IT TO YIELD TO ! G5]AL NE$ TO ACCUMULATE4 ,! CRISIS SITUATION ONLY BR+S \T !SE CONTRADICTIONS MORE %>PLY4 ,COEXI/5CE1 !RE=E1 DOES NOT MEAN ! 9TEGRATION ( ! DIFF]5T SOCIAL SY/EM'S 9TO ONE WORLD ECONOMY 9 :I* ALL NATIONS P>TICIPATE EQUALLY & EQUITABLY1 BUT A CONDITION 9 :I* EXI/+ CONTRADICTIONS HAVE NOT REA*$ SU* A CRITICAL EXTREME ?AT !Y MU/ ]UPT 9 VIOL5T UPHEAVAL4 ,NEI!R ! SEEM+LY 'SOCIALI/' T5D5CIES ( /ATE ECONOMIC 9T]V5TIONS 9 ! CAPITALI/ C\NTRIES NOR ! CAPITALI/ ME?ODS & PRACTICES ( ! /ATE-CAPITALI/ C\NTRIES >E ABLE TO RECONCILE ! TWO SY/EMS & BR+ AB\T COOP]ATION BETWE5 ! TWO 9 !IR COMMON 9T]E/4 ,IT HAS BE5 ! TEMPOR>Y POSSIBILITY ( PEACEFUL COEXI/5CE1 OR ! TEMPOR>Y IMPOSSIBILITY ( BELLIG]5T CONFRONTATIONS1 ?AT HAS BE5 RESPONSIBLE = ! ILLUSION ?AT ! ECONOMIC 9T]E/S ( ! TWO SY/EMS C\LD BE FULFILL$ ?R\< JO9T EXPLOITATION ( ! WORLD PROLET>IAT4 

,BUT JO9T EXPLOITATION IS NOT SO MU* ! ISSUE AS ! DIVID+ UP ( ! EV] DIM9I%+ LOOT BETWE5 ! CAPITALS ( ALL DESCRIPTIONS4 ,9 ?IS /RUGGLE NATIONAL B\ND>IES >E TRANSGRESS$1 & SOCIAL =MATIONS !MSELVES >E TRANSC5D$4 ,! SURPLUS PRODUCT ( ! /ATE-CAPITALI/ SY/EM SE>*ES = ITS 5L>GEM5T 9 ! SURPLUS VALUE ( ! CAPITALI/ SY/EM1 :ILE ! C\NTRIES PRODUC+ SURPLUS VALUE %>E 9 ! SURPLUS PRODUCT ( /ATE CAPITALISM2 ! DI/9CTION1 !RE=E1 BETWE5 SURPLUS PRODUCT & SURPLUS VALUE LOSES ALL S5SE & IS NO LONG] T5ABLE1 AT LEA/ AS F> AS ! WORLD ECONOMY AS A :OLE IS CONC]N$4 ,:ILE ON ! ONE H& ! /ATE-CAPITALI/ SY/EMS1 :I* HAVE UND]GONE !IR [N SEP>ATE PROCESS ( 9TEGRATION1 >E AGA9 BEG9N+ TO %[ CRACKS1 ! COMMON FRONT ( CAPITAL AGA9/ /ATE CAPITALISM IS ALSO COM+ AP>T AT ! SEAMS4 ,! SOCIALI/ BLOC1 5VISION$ AS A SECOND WORLD M>KET1 IS BE+ 5GULF$ BY ! CAPITALI/ WORLD M>KET1 & ! POLITICAL UNITY ( ! /ATE-CAPITALI/ SY/EMS IS BE+ UND]M9$ 9 ! PROCESS4 

,/ATE CAPITALISM IS AS LITTLE ABLE AS CAPITALISM TO ELIM9ATE NATIONAL & H5CE IMP]IALI/ RIVALRIES4 ,S9CE NO WORLD /ATE EXI/S1 ! /ATE IS TI$ TO ! NATION & ! RUL+ CLASS IS B\ND TO ! /ATE4 ,?IS SITUATION 9 NO WAY ALT] EI!R IMP]IALI/S OR ! MULT9ATIONAL *>ACT] ( MANY CAPITALI/ CORPORATIONS1 S9CE !SE =MS ( CAPITALI/ 9T]NATIONALISM >E ONLY MEANS ?R\< :I* C]TA9 NATIONALLY ORGANIZ$ CAPITAL 5TITIES EX]CISE !IR P[] & 5L>GE !IR PR(ITS4 ,9 ! /ATE-CAPITALI/ NATIONS ! NATIONAL /ATE IS ! BASIS ON :I* ! NEW CLASS RULES2 & /ATE CAPITALISM REMA9S AN ECONOMY B\ND TO NATIONAL 9T]E/S4 ,W]E ! /ATE-CAPITALI/ C\NTRIES REALLY SOCIALI/1 !Y W\LD CLOSE RANKS & ABOLI% ! NATION-/ATE BO? POLITICALLY & ECONOMICALLY4 ,BUT AS ?+S /& N[1 RELATIONS AMONG ! /ATE-CAPITALI/ C\NTRIES >E ESS5TIALLY ! SAME AS ?OSE EXI/+ 9 ! CAPITALI/ WORLD4 ,COMMON 9T]E/S MU/ TAKE A BACK SEAT TO NATIONAL 9T]E/S4 ,DIFF]5CES 9 POLITICAL & ECONOMIC P[] 5G5D] RELATIONS ( EXPLOITATION & DEP5D5CY1 :I* CONT9UE TO REPRODUCE !MSELVES )\T 5D4 ,JU/ AS 9 ! CAPITALI/ CAMP ! /RONG] P[] SUBORD9ATE ! WEAK]1 & ?\< SUPRANATIONAL 9/ITUTIONS >E TO BE F\ND 9 BO? CAPITALI/ & /ATE-CAPITALI/ C\NTRIES1 ! *ANGES !Y HAVE BE5 ABLE TO EFFECT 9 ?IS REG>D HAVE BE5 NEGLIGIBLE4 ,9 ! RIVALRY BETWE5 CAPITALI/ & /ATE-CAPITALI/ P[]1 NEWLY ACQUIR$ SPH]ES ( 9FLU5CE MU/ NOT ONLY BE DEF5D$ BUT ALSO EXP&$4 ,/ATE CAPITALISM ITSELF EMB>KS ON AN IMP]IALI/ C\RSE 9 NO WAY 9F]IOR TO CAPITALI/ IMP]IALISM EXCEPT ?AT IT AVAILS ITSELF ( SOCIALI/ IDEOLOGIES4 ,EV5 ?IS IS NO?+ NEW1 BO? WORLD W>S FURNI%+ PRIOR EXAMPLES4 

,DESPITE !IR DIFF]5T POLITICAL & ECONOMIC =MS1 CAPITALISM & /ATE CAPITALISM >E UNIT$ 9 OPPOSITION TO ! 9T]E/S ( ! WORLD PROLET>IAT4 ,! CAPITAL-LABOR RELATION%IP IS /ILL ! HALLM>K ( ALL EXI/+ PRODUCTION RELATIONS4 ,! EQUATION ( /ATE [N]%IP ) SOCIALISM IMPLIES NO MORE ?AN ! RULE ( A NEW CLASS ?AT1 9 ! 9T]E/S ( SELF-PRES]VATION MU/ CLOSE ITS M9D TO SOCIALISM4 ,! HOPES ATTA*$ TO ! WELF>E /ATE ( ! MIX$ ECONOMY1 AS WELL AS ?OSE 5G5D]$ BY ! 'SOCIALI/' IDEOLOGY ( /ATE CAPITALISM1 HAVE BE5 UNMASK$ AS ILLUSIONS BY ! REAL DEVELOPM5T ( CAPITAL4 ,AL?\< ILLUSIONS MAY BE DISPELL$1 ! CONDITIONS ?AT 5G5D]$ !M REMA94 ,9 BO? CAPITALI/ & /ATE-CAPITALI/ C\NTRIES1 ! /ATE APP>ATUS CAN EX]CISE ITS P[] )\T ! CONS5T ( ! WORK$4 ,BUT IT CANNOT >RE/ ! DECL9E ( CAPITAL OR ELIM9ATE CRISES1 NOR CAN IT ABOLI% ! CLASS /RUGGLE4 

,! ABOLITION ( ! 'POLITICAL ECONOMY ( ! WORK]S' 9 ! /ATE-CAPITALI/ C\NTRIES HAS SET ! /AGE = A CLASS /RUGGLE ?AT MU/ 9EVITABLY TURN DIRECTLY AGA9/ ! /ATE1 & :I* !RE=E CAN NO LONG] A*IEVE ITS MORE F>-REA*+ SOCIALI/IC AIMS )9 ! CONF9ES ( /ATE CAPITALISM4 ,EV5 ?\< A MIX$ ECONOMY CANNOT ITSELF DEVELOP 9TO /ATE CAPITALISM1 IT IS /ILL ABLE TO USE ! /ATE TO 9T]V5E 9 ECONOMIC /RUGGLES 9 ORD] TO SAFEGU>D ! CONT9U$ EXI/5CE ( CAPITAL4 ,9DE$1 ON ?IS ACC\NT !RE /ILL EXI/S ! DANG] ?AT ! WORK]S WILL ONCE AGA9 LIMIT !IR POLITICAL DEM&S TO A 'WORK]S' /ATE1' DESPITE ! EXP]I5CES ( ! /ATE-CAPITALI/ C\NTRIES1 9 ORD] TO C>RY ! DAY AGA9/ !IR CAPITALI/ ADV]S>IES4 ,AL?\< = ! MOM5T ?IS DANG] IS NOT ACUTE1 IT REMA9S IMPLICIT 9 ! REVOLUTION>Y IDEOLOGIES SOCIAL DEMOCRACY & ,BOL%EVISM HAVE G5]AT$ OV] ! PA/ C5TURY4 ,IF !SE IDEOLOGIES CONT9UE TO PREVAIL 9 ! SOCIAL /RUGGLES WE CAN EXPECT 9 ! FUTURE1 IT IS FAIR TO SAY ?AT ! IMP5D+ REVOLUTION ALREADY CONTA9S ! SE$S ( C\NT]REVOLUTION )9 IT4 ,TO ABOLI% CAPITALISM1 !RE=E1 ! FIR/ TASK IS TO MAKE ,BOL%EVISM A ?+ ( ! PA/ ONCE & = ALL4 

#aigf 

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