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,! !ORY ( ! ,U,S,S,R AS A =M ( /ATE CAPITALISM )9 ,TROTSKYISM 

,PEOPLE 3 

,AU?OR 3 ,AUFHEB5 

,TEXT 3 

,! !ORY ( ! ,U,S,S,R AS A =M ( /ATE CAPITALISM )9 ,TROTSKYISM 

,9TRODUCTION 

,= ,TROTSKY1 ! ,/AL9I/ SY/EM 9 ! ,U,S,S,R C\LD ONLY BE BUT A TRANSITORY HI/ORICAL PH5OM5A4 ,LACK+ A FIRM LEGAL BASIS 9 ! [N]%IP ( ! MEANS ( PRODUCTION1 ! ,/AL9I/ BUREAUCRACY WAS DOOM$ TO A M]E FLEET+ APPE>ANCE 9 ! OV]ALL C\RSE ( HI/ORY4 ,9DE$1 ?R\<\T ! #a#i#cS1 ,TROTSKY HAD BE5 CONV9C$ ?AT ! DAYS ( ! ,/AL9I/ BUREAUCRACY W]E NUMB]$4 

,= ,TROTSKY1 WORLD CAPITALISM WAS 9 T]M9AL DECL9E4 ,! ECONOMIC /AGNATION ?AT HAD FOLL[$ ! ,WALL ,/REET CRA% 9 #aibi C\LD ONLY 9T5SIFY IMP]IALI/ RIVALRIES AMONG ! GREAT CAPITALI/ P[]S :I* ULTIMATELY C\LD ONLY BE RESOLV$ ?R\< ! DEVA/ATION ( A ,SECOND ,WORLD ,W>4 ,YET ,TROTSKY FIRMLY BELIEV$ ?AT1 LIKE ! ,FIR/ ,WORLD ,W>1 ?IS ,SECOND ,WORLD ,W> W\LD BR+ 9 ITS WAKE A R5EW$ REVOLUTION>Y WAVE ?AT W\LD SWEEP ! :OLE ( ,EUROPE IF NOT ! WORLD4 ,9 ! MID/ ( SU* A REVOLUTION>Y WAVE ! ,RUSSIAN WORK+ CLASS W\LD BE 9 A POSITION TO OV]?R[ ! ,/AL9I/ BUREAUCRACY 9 A POLITICAL REVOLUTION :I* W\LD !N1 ) ! AID ( REVOLUTIONS ELSE:]E1 OP5 ! WAY = ,RUSSIA TO COMPLETE ITS TRANSITION TO SOCIALISM4 ,EV5 IF ! WOR/ CAME TO ! WOR/1 & ! PO/W> REVOLUTION>Y WAVE WAS DEFEAT$1 !N ! WAY W\LD !N BE OP5 = ! RE/ORATION ( CAPITALISM 9 ,RUSSIA4 ,) ! DEFEAT ( ! PROLET>IAT1 BO? 9 ,RUSSIA & ELSE:]E1 ! ,/AL9I/ BUREAUCRACY W\LD SOON TAKE ! OPPORTUNITY TO CONV]T ITSELF 9TO A NEW B\RGEOISIE ?R\< ! PRIVATIZATION ( /ATE 9DU/RY4 ,EI!R WAY ! ,/AL9I/ BUREAUCRACY W\LD SOON DISAPPE>1 ALONG ) ! 5TIRE ,/AL9I/ SY/EM ?AT HAD >IS5 FROM ! DEG5]ATION ( ! ,RUSSIAN ,REVOLUTION4 

,AS ! APPROA* ( ! ,SECOND ,WORLD ,W> BECAME MORE & MORE APP>5T1 ,TROTSKY BECAME MORE CONV9C$ ?AT ,/AL9'S DAY ( RECKON+ W\LD NOT BE F> (F4 ,YET NOT ALL ( ,TROTSKY'S FOLL[]S %>$ HIS OPTIMISM4 

,FOLL[+ HIS EXPULSION FROM ,RUSSIA 9 #aibi ,TROTSKY HAD S\<T TO REE/ABLI% ! ,LEFT ,OPPOSITION ON AN 9T]NATIONAL BASIS SEEK+ TO OPPOSE ,/AL9 )9 ! ,?IRD ,9T]NATIONAL ( ,COMMUNI/ ,P>TIES4 ,H[EV]1 9 ! FACE ( ,/AL9'S RESOLUTE HOLD OV] ! ,?IRD ,9T]NATIONAL & ITS CON/ITU5T ,COMMUNI/ ,P>TIES ,TROTSKY'S EF=TS TO BUILD ! ,9T]NATIONAL ,LEFT ,OPPOSITION )9 ! (FICIAL WORLD ,COMMUNI/ MOVEM5T SOON PROV$ TO BE FUTILE4 ,9 #aicc ,TROTSKY DECID$ TO BREAK FROM ! ,?IRD ,9T]NATIONAL & ATTEMPT TO REGR\P ALL ?OSE ,COMMUNI/S OPPOS$ TO ,/AL9 9 AN EF=T TO BUILD A NEW ,F\R? ,9T]NATIONAL4 

,) ! 9T]NATIONAL UPTURN 9 CLASS /RUGGLE ( ! MID-#a#i#cS1 :I* CULM9AT$ 9 ! ,SPANI% ,REVOLUTION 9 #a#i#c#f1 9CREAS+ NUMB]S ( ,COMMUNI/S :O HAD BECOME DISILLUSION$ ) ,/AL9ISM W]E DRAWN TO ,TROTSKY'S PROJECT4 ,BY #ai* ,TROTSKY HAD FELT ?AT ! TIME HAD COME TO E/ABLI% ! ,F\R? ,9T]NATIONAL4 ,AL?\< ! V>I\S GR\PS ACROSS ! WORLD :O SUPPORT$ ! PROJECT ( A ,F\R? ,9T]NATIONAL W]E /ILL V]Y SMALL COMP>$ ) ! MASS ,COMMUNI/S ,P>TIES ( ! ,?IRD ,9T]NATIONAL1 ,TROTSKY BELIEV$ ?AT IT WAS VITAL TO HAVE ! 9T]NATIONAL ORGANIZATION ( ! ,F\R? ,9T]NATIONAL 9 PLACE BE=E ! ONSET ( ! ,SECOND ,WORLD ,W>4 ,TROTSKY BELIEV$ ?AT JU/ AS ! ,FIR/ ,WORLD ,W> HAD ?R[N ! 9T]NATIONAL WORK]S' MOVEM5T 9TO CONFUSION1 ) ALL ! ,SOCIALI/ ,P>TIES ( ! ,SECOND ,9T]NATIONAL BE+ SWEPT ALONG 9 PATRIOTIC F]VOR1 SO ! SAME W\LD HAPP5 ) ! ONSET ( ! ,SECOND ,WORLD ,W>4 ,9 SU* CIRCUM/ANCES ! ,F\R? ,9T]NATIONAL W\LD HAVE TO PROVIDE A RESOLUTE PO9T ( REF]5CE & CL>ITY 9 ! COM+ /ORM :I* C\LD !N PROVIDE A RALLY+ PO9T ONCE ! PATRIOTIC FEV] HAD GIV5 WAY TO ! URGE = REVOLUTION AMONG ! WORK+ CLASS ACROSS ! WORLD4 

,YET BY #ai* ! UPTURN 9 CLASS /RUGGLE HAD MORE OR LESS PASS$4 ,! ,SPANI% ,REVOLUTION HAD BE5 DEFEAT$ & ,FRANCO'S FASCI/S W]E WELL ON !IR WAY TO W9N+ ! ,SPANI% ,CIVIL ,W>4 ,) FASCISM ALREADY TRIUMPHANT 9 ,ITALY & ,G]MANY & ADVANC+ ELSE:]E 9 ,EUROPE ! SITUATION WAS LOOK+ 9CREAS+ BLEAK = ?OSE ON ! LEFT ?AT HAD BECOME DISILLUSION$ ) ,/AL9ISM4 ,FUR!RMORE1 FEW C\LD HAVE BE5 AS CONV9C$ AS ,TROTSKY WAS ?AT ! ONSET ( A ,SECOND ,WORLD ,W>1 :I* PROMIS$ TO BE EV5 MORE T]RIBLE ?AN FIR/1 W\LD BR+ 9 ITS WAKE A R5EW$ REVOLUTION>Y SITUATION 9 ,EUROPE1 IF NOT ! WORLD4 

,AS A CONSEQU5CE1 MANY1 EV5 )9 ! ,F\R? ,9T]NATIONAL1 CAME TO DRAW RA!R PESSIMI/IC CONCLUSIONS CONC]N+ ! WORLD SITUATION4 ,)9 SU* A PESSIMI/IC P]SPECTIVE IT WAS EASY TO CONCLUDE ?AT ! SOCIALI/ REVOLUTION HAD FAIL$1 BO? 9 ,RUSSIA & ! RE/ ( ,EUROPE1 9 ! E>LY #a#i#bS4 ,FROM ?IS IT WAS BUT A %ORT /EP TO >GUE ?AT CAPITALISM WAS NOT BE+ REPLAC$ BY SOCIALISM1 AS ,M>X HAD =ESE51 BUT BY A NEW & UN=ESE5 =M ( SOCIETY 9 :I* ALL POLITICAL & ECONOMIC LIFE WAS SUBSUM$ BY A TOTALIT>IAN /ATE1 :I* HAD BECOME EVID5T NOT ONLY 9 ,MUSSOL9I'S ,ITALY & ,HITL]'S ,G]MANY BUT ALSO 9 ,/AL9'S ,RUSSIA4 ,?IS NEW =M ( SOCIETY N[ SEEM$ DE/9$ TO DOM9ATE ! WORLD1 JU/ AS CAPITALISM HAD DONE BE=E IT4 ,?IS VIEW F\ND ITS EXPRESSION 9 ! V>I\S !ORIES ( 'BUREAUCRATIC COLLECTIVISM' ?AT 9CREAS+LY GA9$ SUPPORT AMONG ,TROTSKYI/S T[>DS ! 5D ( ! #a#i#cS4 

,! !ORY ( BUREAUCRATIC COLLECTIVISM WAS ORIG9ALLY PUT =W>D BY ,BRUNO ,RIZZI 9 ! E>LY #a#i#cS4 ,YET IT WAS 9 #aici ?AT ?IS !ORY BECAME C5TRAL TO ! FIR/ GRAVE CRISIS 9 ,TROTSKYISM4 ,AS WE HAVE SE51 ON ! BASIS ( HIS !ORY ( ! ,U,S,S,R AS A DEG5]AT$ WORK]S' /ATE1 ,TROTSKY HAD >GU$ ?AT1 DESPITE ALL ! CRIMES P]PETUAT$ BY ! ,/AL9'S REGIME1 IT WAS NECESS>Y1 9 ORD] TO DEF5D ! PROLET>IAN GA9S ( ! ,RUSSIAN ,REVOLUTION1 TO GIVE CRITICAL SUPPORT TO ! ,SOVIET ,UNION4 ,AS WE HAVE ALSO NOT$1 ?IS POSITION BECAME 9CREAS+LY DIFFICULT TO DEF5D AS TRUE NATURE ( ,/AL9'S REGIME BECAME APP>5T1 P>TICUL>LY AFT] ! ,MOSC[ %[ TRIALS ( ! #a#i#cS & ! ROLE ( ! ,/AL9I/S 9 CRU%+ ! WORK]S' REVOLUTION 9 ,SPA9 9 ! ,MAY ,DAYS ( #a#i#c#g4 ,= MANY ,TROTSKYI/S ! LA/ /RAW CAME :5 ,/AL9 SIGN$ A NON-AGGRESSION PACT ) ,HITL] 9 ,AUGU/ #a#i#c#i4 ,H]E WAS ! ,U,S,S,R OP5LY DEAL+ ) A FASCI/ REGIME6 

,9 ,SEPTEMB] #aici SEV]AL LEAD+ MEMB]S ( ! ,SOCIALI/ ,WORK]S' ,P>TY ( ! ,U,S,A1 :I*1 ) SEV]AL ?\S& MEMB]S1 WAS ONE ( ! L>GE/ SECTIONS ( ! ,F\R? ,9T]NATIONAL1 ANN\NC$ ! =MATION ( AN ORGANIZ$ M9ORITY FACTION OPPOS$ TO ! (FICIAL /ANCE T[>DS ! ,U,S,S,R4 ,9 !IR POLEMICS ) ,TROTSKY & HIS SUPPORT]S 9 ! ,AM]ICAN ,S,W,P ! NOTION C5TRAL TO BUREAUCRATIC COLLECTIVISM -- ?AT ,/AL9'S ,RUSSIA WAS LITTLE DIFF]5T FROM ?AT ( ,HITL]'S ,G]MANY -- PROV$ TO BE A P[]FUL WEAPON4 ,9DE$1 MANY ( ! LEAD+ FIGURES 9 ?IS OPPOSITIONAL FACTION1 :I* EV5TUALLY SPLIT FROM ! ,S,W,P 9 #aid TO =M ! ,WORK]S' ,P>TY1 CAME TO ADOPT ! !ORY ( BUREAUCRATIC COLLECTIVISM AS !IR [N4 ,AS SU* ! !ORY ( BUREAUCRATIC COLLECTIVISM CAME TO POSE ! MA9 *ALL5GE TO OR?ODOX ,TROTSKYISM FROM )9 ,TROTSKYISM ITSELF4 

,9 HIS 9T]V5TIONS 9 ! FI]CE POLEMICS ?AT PREC$$ ! SPLIT 9 ! ,AM]ICAN ,S,W,P1 ,TROTSKY MADE IT CLE> ?AT HE SAW ! !ORY ( BUREAUCRATIC COLLECTIVISM AS NO?+ LESS ?AN A DIRECT ATTACK NOT M]ELY ON HIS [N IDEAS1 BUT ON ,M>XISM ITSELF4 ,! NOTION ?AT ! CAPITALI/ MODE ( PRODUCTION WAS DE/9$ TO BE SURPASS$1 NOT BY SOCIALISM BUT BY A =M ( SOCIETY BAS$ ON BUREAUCRATIC COLLECTIVISM1 CLE>LY BROKE ) ! FUNDAM5TAL UND]/&+ ( HI/ORY ?AT HAD UND]P9N$ ,M>XISM FROM ITS V]Y 9CEPTION4 ,YET1 IF ?IS WAS NOT BAD 5\<1 NONE ( ! V>I\S V]SIONS ( ! !ORY ( BUREAUCRATIC COLLECTIVISM W5T AS F> TO PROVIDE AN ADEQUATE MAT]IALI/ & CLASS ANALYSIS ( :AT BUREAUCRATIC COLLECTIVISM WAS & H[ IT HAD COME AB\T4 ,AS A RESULT1 AS ,TROTSKY CEASELESSLY PO9T$ \T1 !SE !ORIES ( BUREAUCRATIC COLLECTIVISM W]E UNABLE TO GO BEYOND ! LEVEL ( APPE>ANCE & AS SU* REMA9$ M]ELY DESCRIPTIVE4 

,SU* CRITICISMS W]E SE5 TO BE BORNE \T BY ! EV5TUAL FATE ( ! V>I\S !ORIES ( BUREAUCRATIC COLLECTIVISM & !IR LEAD+ PROPON5TS4 ,HAV+ AB&ON$ ,M>XISM1 ! !ORIES ( BUREAUCRATIC COLLECTIVISM LACK$ ANY !ORETICAL GR\ND+ ( !IR [N4 ,AS A CONSEQU5CE !Y W]E OBLIG$ TO LOOK TO V>I\S /R&S ( B\RGEOIS SOCIOLOGY & 5D$ UP JO9+ ! GR[+ /REAM ( B\RGEOIS !ORIES ?AT SAW ! 9CREAS+ TOTALIT>IANISM & BUREAUCRATIZATION ( MOD]N SOCIETIES AS AN 9EVITABLE RESULT ( ! COMPLEXITIES ( 9DU/RIAL SOCIETY4 ,?IS WAS P]HAPS BE/ ILLU/RAT$ BY ONE ( ! LEAD+ FIGURES 9 ! SPLIT FROM ! ,AM]ICAN ,S,W,P 9 #a#i#d1 ,JAMES ,BURNHAM4 ,AS A UNIV]SITY PR(ESSOR1 ,BURNHAM WAS RECOGNIZ$ AS ONE ( ! LEAD+ 9TELLECTUALS 9 ! M9ORITY ?AT SPLIT FROM ! ,AM]ICAN ,S,W,P1 BUT HE W5T ON TO BECOME ONE ( ! ORIG9ATORS ( ! !ORY ( ! 'MANAG]IAL SOCIETY' :I* WAS TO BECOME POPUL> AMONG B\RGEOIS SOCIOLOGI/S 9 ! '#eS & '#fS4 ,YET :ILE ! LOGIC ( BUREAUCRATIC COLLECTIVISM L$ ,BURNHAM TO BECOME A LIB]AL1 = ,S*A*TMAN1 :O HAD BE5 ONE ( ! PRIME PROPON5TS ( ! !ORY ( BUREAUCRATIC COLLECTIVISM1 IT MEANT EV5TUALLY 5D+ UP AS A VIRUL5T ANTI-,COMMUNI/ :O OP5LY BACK$ ! ,MC,C>?Y WIT* HUNTS ( ! #a#i#eS4 ,= ?OSE :O REMA9$ LOYAL TO ,TROTSKY ! FATE ( !SE SUPPORT]S ( ! BUREAUCRATIC COLLECTIVISM C\LD ONLY BE TAK5 AS A /]N LESSON 9 ! DANG]S ( /RAY+ TOO F> FROM ! TEA*+S ( ,TROTSKY & ,M>XI/ OR?ODOXY4 

,YET IT %\LD BE NOT$ H]E ?AT NOT ALL ?OSE :O SPLIT FROM ! ,AM]ICAN ,S,W,P AT ?IS TIME W]E PROPON5TS ( A !ORY ( BUREAUCRATIC COLLECTIVISM OR V>IANTS ( ONE4 ,FROM ! V]Y F\NDATION ( ! ,F\R? ,9T]NATIONAL !RE HAD BE5 A SIGNIFICANT M9ORITY ) ! ,TROTSKYI/ MOVEM5T :O HAD OPPOS$ ,TROTSKY'S /ANCE TO ! ,U,S,S,R BY >GU+ ?AT ,RUSSIA WAS NOT A DEG5]AT$ WORK]S' /ATE BUT WAS SIMPLY /ATE CAPITALI/4.<#c#c.> ,IT WAS ?IS !ORY ( ! ,U,S,S,R AS BE+ /ATE CAPITALI/ :I* WAS TO REEM]GE ) GREAT] =CE AFT] ! ,SECOND ,WORLD ,W>1 AS WE %ALL N[ SEE4 

,! !ORY ( /ATE CAPITALISM & ! SECOND CRISIS 9 ,TROTSKYISM 

,TROTSKY'S PR$ICTIONS = ! 5D ( ! ,SECOND ,WORLD ,W>1 :I* HAD SU/A9$ ! HOPES ( ?OSE :O HAD REMA9$ LOYAL TO HIM1 W]E SOON PROV$ TO BE FALSE4 ,!RE WAS NO REPEAT ( ! GREAT REVOLUTION>Y WAVE ?AT HAD SWEPT ,EUROPE AT ! 5D ( ! ,FIR/ ,WORLD ,W>2 NOR WAS ! GRIP ( EI!R ,/AL9ISM OR SOCIAL DEMOCRACY ON ! WORK]S' MOVEM5TS WEAK5$4 ,ON ! CONTR>Y1 BO? ,/AL9ISM & SOCIAL DEMOCRACY EM]G$ FROM ! ,SECOND ,WORLD ,W> F> /RONG] ?AN !Y HAD EV] BE54 

,AS IT BECAME 9CREAS+LY APP>5T ?AT ! REALITIES ( ! IMM$IATE PO/W> WORLD CONTRADICT$ ! PR$ICTIONS ?AT ,TROTSKY HAD MADE BE=E HIS DEA? 9 #a#i#d1 & ) !M ! BASIC ORI5TATION ( ! ,F\R? ,9T]NATIONAL1 ! /RA9S )9 ! ,TROTSKYI/ MOVEM5T BETWE5 ?OSE :O S\<T TO REVISE ,TROTSKYISM TO MEET !SE NEW REALITIES & ?OSE :O FE>$ SU* REVISIONISM REA*$ ! PO9T ( CRISIS4 ,9 #a#i#e#c1 LESS ?AT EI<T YE>S AFT] ! 5D ( ! W> ! ,F\R? ,9T]NATIONAL F9ALLY SPLIT GIV+ RISE TO ! '#e#g V>IETIES' ( ,TROTSKYISM ?AT WE F9D TODAY4 ,ONE ( ! CRUCIAL ISSUES AT ! HE>T ( ?IS CRISIS )9 ,TROTSKYISM WAS ?AT ( ! QUE/ION ( ! RESPECTIVE NATURES ( ! ,U,S,S,R & ,EA/]N ,EUROPE4 

,! RETREAT ( ! ,G]MAN >MIES DUR+ ! F9AL /AGES ( ! W> HAD PROMPT$ POPUL> UPRIS+S ACROSS ,EA/]N ,EUROPE4 ,= ! MO/ P>T !SE UPRIS+S HAD EI!R BE5 CONTA9$ BY ! ,/AL9I/S1 :]E !Y PROVID$ ! POPUL> BASE ON :I* TO BUILD BROAD-BAS$ ANTI-FASCI/ GOV]NM5TS1 OR1 TO ! EXT5T ?AT !Y C\LD NOT BE CONTA9$1 !Y W]E EI!R CRU%$ BY ! ADVANC+ ,R$ ,>MY1 OR ELSE AB&ON$ TO ! V5GEANCE ( ! RETREAT+ ,G]MAN =CES4 

,AT FIR/ ,/AL9 DID NOT SEEK TO IMPOSE ! ECONOMIC OR POLITICAL MODEL ( ! ,SOVIET ,UNION ON ! C\NTRIES ( ,EA/]N ,EUROPE4 ,! BROAD-BAS$ ANTI-FASCI/ GOV]NM5TS W]E ELECT$ ON TRADITIONAL B\RGEOIS-DEMOCRATIC L9ES & 9 MO/ CASES CAME TO 9CLUDE NOT ONLY ,COMMUNI/S & SOCIALI/S BUT ALSO LIB]ALS & REPRES5TATIVES ( ! PEASANT & RURAL CLASSES4 ,AL?\< !SE GOV]NM5TS W]E 5C\RAG$ TO C>RY \T NATIONALIZATIONS ( KEY 9DU/RIES1 & IMPLEM5T V>I\S SOCIAL & AGR>IAN RE=MS1 9 MANY RESPECTS ?IS DIFF]$ LITTLE FROM ! POLICIES ( NATIONALIZATION ( AIL+ 9DU/RY & WELF>E RE=MS ?AT W]E HAPP5+ ELSE:]E 9 ,EUROPE4 ,BUT AS ! ,COLD ,W> BEGAN TO SET 91 & ,EUROPE BEGAN TO POL>IZE BETWE5 ,EA/ & ,WE/1 ,/AL9 BEGAN TO IMPOSE ! ,SOVIET ECONOMIC & POLITICAL MODEL ON TO ,EA/]N ,EUROPE4 ,IF NECESS>Y1 ! PO/W> COALITIONS W]E PU%$ ASIDE & ! :OLESALE NATIONALIZATION ( 9DU/RY WAS C>RI$ \T & ! M>KET WAS REPLAC$ BY C5TRALIZ$ PLANN+4 

,! 9ITIAL PHASE ( ! PO/W> ]A 9 ,EA/]N ,EUROPE HAD PRES5T$ ,TROTSKYI/S ) FEW PROBLEMS4 ,! UPRIS+S AT ! 5D ( ! W> C\LD BE SE5 AS PORT5TS ( ! COM+ WORLD REVOLUTION1 :ILE ! REPRESSION BY ! ,/AL9I/S C\LD BE RI<TE\SLY CONDEMN$4 ,FUR!RMORE1 ! FACT ?AT !SE UPRIS+S HAD = ! MO/ P>T FAIL$ EXPLA9$ :Y ,EA/]N ,EUROPE REMA9$ CAPITALI/4 ,H[EV]1 ONCE ! ',RUSSIFICATION ( ,EA/]N ,EUROPE' BEGAN TO TAKE PLACE1 ,TROTSKYI/ !ORY BEGAN TO FACE A S]I\S DILEMMA4 

,( C\RSE1 ! TRANS=MATION ( PROP]TY RELATIONS ?AT HAD BE5 BR\<T AB\T BY ! :OLESALE NATIONALIZATION ( 9DU/RY & ! 9TRODUCTION ( C5TRALIZ$ PLANN+ C\LD BE SE5 TO REAFFIRM ,TROTSKY'S 9SI/5CE ON ! OBJECTIVELY PROGRESSIVE ROLE ( ! ,/AL9I/ BUREAUCRACY4 ,9DE$1 IT C\LD N[ BE >GU$ ?AT ! ,/AL9I/ BUREAUCRACY HAD NOT ONLY DEF5D$ ! PROLET>IAN GA9S ( ! ,RUSSIAN ,REVOLUTION BUT HAD N[ EXT5D$ !M TO ! RE/ ( ,EA/]N ,EUROPE4 

,YET1 IF ?IS WAS ! CASE1 DID ?IS NOT IMPLY ?AT ! C\NTRIES ( ,EA/]N ,EUROPE HAD N[ BECOME DEG5]AT$ WORK]S' /ATES LIKE ! ,U,S,S,R8 ,BUT H[ C\LD Y\ HAVE A DEG5]AT$ WORK]S' /ATE :5 !RE HAD BE5 NO REVOLUTION1 & ?US NO WORK]S' /ATE1 9 ! FIR/ PLACE86 ,IT WAS N[ NO LONG] JU/ ?AT A WORK]S' /ATE WAS SUPPOS$ TO EXI/ :]E ! WORK]S HAD NO /ATE P[]1 AS ,TROTSKY HAD >GU$ = ,/AL9I/ ,RUSSIA1 BUT WORK]S' /ATES' W]E N[ SUPPOS$ TO EXI/ :]E ! WORK+ CLASS HAD NEV] BE5 9 P[]6 ,) ! QUE/ION ( ,EA/]N ,EUROPE ! FUNDAM5TAL DI*OTOMY ( ,TROTSKY'S !ORY ( A DEG5]AT$ WORK]S' /ATE1 9 :I* ! OBJECTIVE 9T]E/S ( ! WORK+ CLASS >E SOMEH[ ABLE TO /& AP>T FROM & AGA9/ ! WORK+ CLASS 9 ! =M ( ! ALI5 P[] ( ! BUREAUCRACY1 N[ /OOD EXPOS$4 

,BUT IF ! C\NTRIES ( ,EA/]N ,EUROPE W]E NOT ADMITT$ AS BE+ DEG5]AT$ WORK]S' /ATES !N :AT W]E !Y8 ,! OBVI\S ANSW]1 GIV5 ?AT ! PR9CIPLE MEANS ( PRODUCTION HAD BE5 SIMPLY NATIONALIZ$ BY ! /ATE )\T A WORK]S' REVOLUTION1 WAS ?AT !Y W]E /ATE CAPITALI/4 ,H[EV]1 SU* AN ANSW] CONTA9$ EV5 GREAT] DANG]S = OR?ODOX ,TROTSKYI/S ?AN ! FIR/4 ,AS ,EA/]N ,EUROPE BECAME RECON/RUCT$ 9 ! IMAGE ( ! ,U,S,S,R IT BECAME 9CREAS+LY DIFFICULT TO AVOID ! CONCLUSION ?AT IF ! C\NTRIES ( ,EA/]N ,EUROPE W]E /ATE CAPITALI/ !N SO MU/ ! ,SOVIET ,UNION BE NO?+ O!R ?AN A =M ( /ATE CAPITALISM4 

,AFT] NUM]\S ATTEMPTS TO RESOLVE ?IS DILEMMA ! (FICIAL L9E :I* EM]G$ )9 ! LEAD]%IP ( ! ,F\R? ,9T]NATIONAL WAS ?AT ! UPRIS+ AT ! 5D ( ! W> HAD ALL BE5 P>T ( A PROLET>IAN REVOLUTION ?AT HAD BE5 MUTILAT$ & DE=M$ BY ,/AL9ISM4 ,! C\NTRIES ( ,EA/]N ,EUROPE W]E !RE=E NOT DEG5]AT$ WORK]S' /ATES AS SU*1 BUT 'DE=M$ WORK]S' /ATES'4 ,YET ?IS ATTEMPT$ SOLUTION /ILL IMPLI$ ?AT ! ,/AL9I/ BUREAUCRACY WAS AN ACTIVE AG5T 9 CREAT+ ! OBJECTIVE CONDITIONS ( SOCIALISM4 ,AS WE HAVE SE51 ,TROTSKY HAD >GU$ ?AT ! ,/AL9I/ BUREAUCRACY WAS PROGRESSIVE 9 ?AT 9 DEF5D+ ITS [N BASIS 9 /ATE PROP]TY IT WAS IMPELL$ TO DEF5D ! OBJECTIVE GA9S ( ! PROLET>IAN REVOLUTION1 ?AT IS ! /ATE [N]%IP ( ! MEANS ( PRODUCTION4 ,N[ ,TROTSKYISM HAD COME TO >GUE ?AT ! ,/AL9I/ BUREAUCRACY NOT ONLY DEF5D$ SU* PROLET>IAN GA9S BUT C\LD N[ ACTUALLY EXT5D !M6 ,) ! ,/AL9I/ BUREAUCRACY N[ DEEM$ TO BE A PRIM>Y AG5T 9 ! TRANSITION TO SOCIALISM ! IMPORTANCE ( ! REVOLUTION>Y ROLE ( ! WORK+ CLASS BECAME DIM9I%$4 ,! WAY WAS N[ OP5$ = ,TROTSKYI/S 9 ! COM+ DECADES TO SUPPORT ALL SORTS ( NATIONALI/ MOVEM5TS REG>DLESS ( ! ROLE )9 !M ( ! PROLET>IAT4.<#c#d.> 

,CLIFF & ! NEO-,TROTSKYI/ !ORY ( ! ,U,S,S,R AS /ATE CAPITALI/ 

,P]HAPS RA!R IRONICALLY1 ,TONY ,CLIFF WAS ORIG9ALLY S5T TO ,BRITA9 BY ! LEAD]%IP ( ! ,F\R? ,9T]NATIONAL 9 AN EF=T TO HEAD (F ANY POT5TIAL SUPPORT )9 ! ,BRITI% ,SECTION = ! !ORY ?AT ,EA/]N ,EUROPE & ! ,U,S,S,R W]E 9 ANY WAY /ATE CAPITALI/4 ,AS IT TURN$ \T1 IT WAS NOT ,G]RY ,HEALEY1 ,T$ ,GRANT OR ANY ( ! O!R LEAD+ FIGURES ( ! ,BRITI% ,REVOLUTION>Y ,COMMUNI/ ,P>TY.<#c#e.> AT ?AT TIME :O CAME TO ADOPT ! !ORY ( /ATE CAPITALISM BUT NONE O!R ?AN ,CLIFF HIMSELF4 

,YET 9 COM+ TO ! VIEWPO9T ?AT IT WAS NOT ONLY ,EA/]N ,EUROPE ?AT WAS /ATE CAPITALI/ BUT ALSO ! ,U,S,S,R1 ,TONY ,CLIFF WAS DET]M9$ NOT TO FOLL[ 9 ! FOOT/EPS ( SO MANY =M] ,TROTSKYI/S :O1 HAV+ REJECT$ ,TROTSKY'S !ORY ( ,RUSSIA AS A DEG5]AT$ WORK]S' /ATE1 HAD COME TO REJECT ,TROTSKY & EV5 ,M>XISM ITSELF4 ,9/EAD1 ,CLIFF WAS COMMITT$ TO DEVELOP+ A /ATE CAPITALI/ !ORY ( ! ,U,S,S,R :I* REMA9$ FIRMLY )9 BO? ! ,TROTSKYI/ & OR?ODOX ,M>XI/ TRADITION4 ,AGA9/ ?OSE :O >GU$ ?AT ! !ORY ( ! ,U,S,S,R AS A DEG5]AT$ WORK]S' /ATE WAS C5TRAL TO ,TROTSKY'S ,M>XISM1 ,CLIFF REPLI$ BY >GU+ ?AT NOT ONLY W]E !RE NUM]\S EXAMPLES 9 ,TROTSKY'S [N WRIT+S :]E HE 9DICAT$ S]I\S D\BTS CONC]N+ HIS CONCLUSION ?AT ! ,U,S,S,R WAS A DEG5]AT$ WORK]S' /ATE BUT ?AT T[>DS ! 5D ( HIS LIFE ,TROTSKY HAD %[N SIGNS ( MOV+ AWAY FROM SU* CONCLUSIONS ALTOGE!R4 ,9DE$1 ,CLIFF S\<T TO CLAIM ?AT HAD ,TROTSKY LIV$ !N HE TOO W\LD HAVE EV5TUALLY COME R\ND TO ! CONCLUSION ?AT ! ,U,S,S,R HAD BECOME /ATE CAPITALI/1 & C]TA9LY W\LD NOT HAVE DOGMATICALLY DEF5D$ A POSITION ?AT FLEW 9 ! FACE ( ALL ! EVID5CE AS HIS LOYAL FOLL[]S 9 ! LEAD]%IP ( ! ,F\R? ,9T]NATIONAL HAD DONE4 

,CLIFF ORIG9ALLY PRES5T$ HIS RA!R H]ETICAL IDEAS 9 #aidh 9 ! =M ( A DUPLICAT$ DISCUSSION DOCUM5T 5TITL$ ,! ,NATURE ( ,/AL9I/ ,RUSSIA4 ,AFT] SEV]AL $ITIONS & ACCOMPANY+ AM5DM5TS & ADDITIONS1 ?IS TEXT N[ TAKES ! =M ( A BOOK 5TITL$ ,/ATE ,CAPITALISM 9 ,RUSSIA :I* PROVIDES US ) A DEF9ITIVE /ATEM5T ( ,CLIFF'S POSITION4 

,CLIFF DEVOT$ MU* ( ! FIR/ ?IRD ( ,/ATE ,CAPITALISM 9 ,RUSSIA TO PRES5T+ A MASS ( EVID5CE ) :I* HE S\<T TO %[ BO? ! EXPLOITATIVE & REPRESSIVE NATURE ( ! ,U,S,S,R4 ,YET1 AS P[]FUL AN 9DICTM5T ( ! ,/AL9I/ REGIME AS ?IS MAY HAVE BE51 ! EVID5CE ,CLIFF PRES5T$ WAS F> FROM SUFFICI5T TO CONV9CE HIS OPPON5TS )9 EI!R ! ,REVOLUTION>Y ,COMMUNI/ ,P>TY OR ! BROAD] ,F\R? ,9T]NATIONAL4 ,= OR?ODOX ,TROTSKYI/S SU* EVID5CE C\LD SIMPLY BE TAK5 TO CONFIRM ! EXT5T ( ! DEG5]ATION ( ! ,SOVIET ,UNION & DID LITTLE TO REFUTE ! P]SI/5CE ( ,RUSSIA AS ESS5TIALLY A WORK]S' /ATE4 ,AS ,CLIFF HIMSELF RECOGNIZ$1 IT WAS NECESS>Y TO DEMON/RATE ?AT ! APP>5T EXPLOITATIVE & REPRESSIVE *>ACT] ( ! ,SOVIET ,UNION NECESS>ILY >OSE1 NOT FROM ! DEG5]ATION ( ! ,SOVIET ,UNION AS A WORK]S' /ATE BUT RA!R FROM ! FACT ?AT UND] ,/AL9 ! ,U,S,S,R HAD CEAS$ TO BE A WORK]S' /ATE & HAD BECOME /ATE CAPITALI/4 ,YET TO DO ?IS ,CLIFF HAD FIR/ ( ALL TO CL>IFY :AT HE MEANT BY '/ATE CAPITALISM' & H[ SU* A CONCEPTION WAS NOT ONLY COMPATIBLE )1 BUT ROOT$ )9 ! OR?ODOX ,M>XI/ TRADITION4 

,= OR?ODOX ,M>XISM1 CAPITALISM HAD BE5 DEF9$ AS A CLASS SOCIETY DOM9AT$ BY G5]ALIZ$ COMMODITY EX*ANGE :I* >ISES FROM ! PRIVATE [N]%IP ( ! MEANS ( PRODUCTION4 ,ON ! BASIS ( SU* A DEF9ITION IT W\LD APPE>1 AT LEA/ AT FIR/ SI<T1 ?AT ! NOTION ( /ATE CAPITALISM 9 ! ABSOLUTE S5SE WAS A CONTRADICTION 9 T]MS4 ,IF ALL ( ! MEANS ( PRODUCTION >E NATIONALIZ$1 ! CAPITALI/ CLASS EXPROPRIAT$ & ! LAW ( VALUE & ! M>KET REPLAC$ BY /ATE ALLOCATION & PLANN+1 !N IT W\LD APPE> ?AT CAPITALISM MU/ HAVE BE51 BY DEF9ITION1 ABOLI%$4 ,IF IT WAS ACCEPT$ ?AT1 = ! MO/ P>T1 ! ,RUSSIAN ,REVOLUTION HAD L$ TO ! ABOLITION ( ! PRIVATE [N]%IP ( ! MEANS ( PRODUCTION1 !N IT W\LD SEEM CLE> ?AT1 FROM A ,M>XI/ PO9T ( VIEW1 CAPITALISM 9 ANY =M C\LD NOT EXI/ 9 ! ,U,S,S,R4 7,& ( C\RSE ?IS IS ! COMMON OBJECTION WE F9D ADVANC$ AGA9/ ALL !ORIES ( /ATE CAPITALISM 9 ! ,U,S,S,R47 

,H[EV]1 AS ,CLIFF WAS KE5 TO PO9T \T1 IT HAD ALSO BE5 C5TRAL TO OR?ODOX ,M>XISM ?AT ! CAPITALI/ MODE ( PRODUCTION WAS TRANSITORY4 ,CAPITALISM WAS M]ELY A PHASE 9 HUMAN HI/ORY :OSE V]Y DEVELOPM5T W\LD EV5TUALLY UND]M9E ITS [N BASIS4 ,AS CAPITALISM REPEAT$LY REVOLUTIONIZ$ ME?ODS ( PRODUCTION IT ADVANC$ ! =CES ( PRODUCTION TO AN UNPREC$5T$ DEGREE4 ,YET 9 ADVANC+ ! =CES ( PRODUCTION CAPITALISM WAS OBLIG$ TO 9CREAS+LY SOCIALIZE PRODUCTION AS PRODUCTION WAS C>RI$ \T ON AN EV] L>G] & MORE COMPLEX SCALE4 ,! MORE SOCIAL ! PRODUCTION PROCESS BECAME ! MORE IT CAME 9TO CONFLICT ) ! PRIVATE APPROPRIATION ( ! WEAL? ?AT IT PRODUC$4 ,AS A RESULT CAPITALISM WAS OBLIG$ TO NEGATE ITS V]Y [N BASIS 9 ! PRIVATE [N]%IP ( PRODUCTION & 9 DO+ SO IT PREP>$ ! WAY = SOCIALISM4 

,AS WE HAVE NOT$ BE=E1 ALREADY BY ! 5D ( ! N9ETE5? C5TURY MO/ ,M>XI/S HAD COME TO ! VIEW ?AT ! CLASSICAL /AGE ( FREE COMPETITIVE CAPITALISM1 ?AT HAD BE5 DESCRIB$ & ANALYZ$ BY ,M>X 9 ! #a#h#fS1 HAD GIV5 WAY TO ! F9AL /AGES ( ! CAPITALI/ ]A4 ,! GR[? ( HUGE C>TELS & MONOPOLIES & ! 9CREAS+ ECONOMIC ROLE ( ! /ATE WAS SE5 AS NEGAT+ ! M>KET & ! OP]ATION ( ! LAW ( VALUE4 ,AT ! SAME TIME ! EM]G5CE ( JO9T /OCK COMPANIES & ! NATIONALIZATION ( KEY 9DU/RIES MEANT ! REPLACEM5T ( 9DIVIDUAL CAPITALI/ [N]%IP ( ! MEANS ( PRODUCTION BY COLLECTIVE =MS ( [N]%IP :I* IMPLI$ ! FUR!R NEGATION ( PRIVATE PROP]TY4 ,9DE$1 AS ,5GELS >GU$1 ! DEVELOPM5T ( BO? MONOPOLY & /ATE CAPITALISM WAS LEAD+ TO ! PO9T ?AT ! CAPITALI/ CLASS WAS SUP]FLU\S TO ! PRODUCTION PROCESS ITSELF4 ,CAPITAL NO LONG] NE$$ ! CAPITALI/4 ,AS ,5GELS HIMSELF /ATES3 

.<,T.>HE CONV]SION ( ! GREAT ORGANIZATIONS = PRODUCTION & COMMUNICATION 9TO JO9T-/OCK COMPANIES & /ATE PROP]TY %[ ?AT = ?IS PURPOSE ! B\RGEOISIE CAN BE DISP5S$ )4 ,ALL ! SOCIAL FUNCTIONS ( ! CAPITALI/S >E N[ C>RI$ \T BY SAL>I$ EMPLOYES4 ,! CAPITALI/ HAS NO LONG] ANY SOCIAL ACTIVITY SAVE ! POCKET+ ( REV5UES1 ! CLIPP+ ( C\PONS & GAMBL+ ON ! /OCK EX*ANGE1 :]E DIFF]5T CAPITALI/S FLEECE EA* O!R ( !IR CAPITAL4 ,JU/ AS AT FIR/ ! CAPITALI/ MODE ( PRODUCTION DISPLAC$ ! WORK]S1 SO N[ IT DISPLACES ! CAPITALI/S1 RELEGAT+ !M1 JU/ AS IT DID ! WORK]S1 TO ! SUP]FLU\S POPULATION1 EV5 IF 9 ! FIR/ 9/ANCE NOT TO ! 9DU/RIAL RES]VE >MY4 

,BUT NEI!R ! CONV]SION 9TO JO9T /OCK COMPANIES NOR 9TO /ATE PROP]TY DEPRIVES ! PRODUCTIVE =CES ( !IR *>ACT] AS CAPITAL4 ,9 ! CASE ( JO9T /OCK COMPANIES ?IS IS OBVI\S4 ,& ! MOD]N /ATE1 TOO1 IS ONLY ! ORGANIZATION ) :I* B\RGEOIS SOCIETY PROVIDES ITSELF 9 ORD] TO MA9TA9 ! G5]AL EXT]NAL CONDITIONS ( ! CAPITALI/ MODE ( PRODUCTION AGA9/ 5CROA*M5TS EI!R BY WORK]S OR BY 9DIVIDUAL CAPITALI/S4 ,! MOD]N /ATE1 :ATEV] ITS =M1 IS AN ESS5TIALLY CAPITALI/ MA*9E2 IT IS ! /ATE ( CAPITALI/S1 ! IDEAL COLLECTIVE BODY ( ALL CAPITALI/S4 ,! MORE PRODUCTIVE =CES IT TAKES OV] AS ITS PROP]TY1 ! MORE IT BECOMES ! REAL COLLECTIVE BODY ( ALL CAPITALI/S1 ! MORE CITIZ5S IT EXPLOITS4 ,! WORK]S REMA9 WAGE E>N]S1 PROLET>IANS4 ,! CAPITALI/ RELATION%IP IS NOT ABOLI%$2 IT IS RA!R PU%$ TO AN EXTREME4 ,BUT AT ?IS EXTREME IT IS TRANS=M$ 9TO ITS OPPOSITE4 ,/ATE [N]%IP ( ! PRODUCTIVE =CES IS NOT ! SOLUTION ( ! CONFLICT1 BUT IT CONTA9S )9 ITSELF ! =MAL MEANS1 ! KEY TO ! SOLUTION4 7,5GELS1 ,ANTI-,DUHR+1 P4 #c#c7 

,SO = ! OLD OR?ODOXY ( ! ,SECOND ,9T]NATIONAL IT WAS UND\BT$LY ACCEPT$ ?AT !RE WAS AN 9H]5T T5D5CY T[>DS /ATE CAPITALISM4 ,9DE$ IT WAS ?IS T5D5CY :I* WAS SE5 AS LAY+ ! BASIS = SOCIALISM4 ,YET IT HAD ALSO BE5 C5TRAL = BO? ,L59 & ! NEW ,BOL%EVIK OR?ODOXY4 ,NOT ONLY DID ! 9CREAS+ NEGATION ( PRIVATE PROP]TY & ! LAW ( VALUE 9DICATE ! RIP5ESS = SOCIALISM1 BUT ! FUSION ( ! /ATE & CAPITAL )9 /ATE CAPITALISM EXPLA9$ ! 9CREAS+ IMP]IALI/ RIVALRIES ?AT HAD L$ TO ! ,FIR/ ,WORLD ,W>4 ,AS ! COMPETITIVE /RUGGLE BETWE5 CAPITAL & CAPITAL BECAME AT ! SAME TIME A /RUGGLE BETWE5 IMP]IALI/ /ATES1 IMP]IALI/ W> BECAME 9EVITABLE4 ,AS ,BUKH>9 REM>KS 9 ,IMP]IALISM & ! ,WORLD ,ECONOMY1 :I* PROVID$ ! !ORETICAL BASIS = ,L59'S !ORY ( IMP]IALISM3 

,:5 COMPETITION HAS F9ALLY REA*$ ITS HI<E/ /AGE1 :5 IT HAS BECOME COMPETITION BETWE5 /ATE CAPITALI/ TRU/S1 !N ! USE ( /ATE P[]1 & ! POSSIBILITIES CONNECT$ ) IT PLAY A V]Y L>GE P>T4 ,! /ATE APP>ATUS HAS ALWAYS S]V$ AS A TOOL 9 ! H&S ( ! RUL+ CLASSES ( ITS C\NTRY1 & IT HAS ALWAYS ACT$ AS ! !IR 0DEF5D] & PROTECTOR0 9 ! WORLD M>KET2 AT NO TIME1 H[EV]1 DID IT HAVE ! COLOSSAL IMPORTANCE ?AT IT HAS 9 ! EPO* ( F9ANCE CAPITAL & IMP]IALI/ POLITICS4 ,) ! =MATION ( /ATE CAPITALI/ TRU/S COMPETITION IS BE+ ALMO/ 5TIRELY %IFT$ ONTO =EIGN C\NTRIES2 OBVI\SLY ! ORGANS ( ! /RUGGLE ?AT IS TO BE WAG$ ABROAD1 PRIM>ILY /ATE P[]1 MU/ !RE=E GR[ TREM5D\SLY444 ,IF /ATE P[] IS G5]ALLY GR[+ 9 SIGNIFICANCE ! GR[? ( ITS MILIT>Y ORGANIZATION1 ! >MY & ! NAVY1 IS P>TICUL>LY /RIK+4 ,! /RUGGLE BETWE5 /ATE CAPITALI/ TRU/S IS DECID$ 9 ! FIR/ PLACE BY ! RELATION BETWE5 !IR MILIT>Y =CES1 = MILIT>Y P[] ( ! C\NTRY IS ! LA/ RESORT ( ! /RUGGL+ 0NATIONAL0 GR\PS ( CAPITALI/S4 7,BUKH>91 P4 #a#b#d7 

,SO IT C\LD NOT BE D\BT$ ?AT ! NOTION ?AT CAPITALISM WAS DEVELOP+ T[>DS /ATE CAPITALISM1 SU* ?AT ITS V]Y BASIS )9 BO? ! LAW ( VALUE & PRIVATE PROP]TY WAS 9CREAS+LY BECOM+ NEGAT$1 WAS CLE>LY ROOT$ )9 OR?ODOX ,M>XISM4 ,! QUE/ION !N WAS :E!R /ATE CAPITALISM 9 AN ABSOLUTE S5SE WAS POSSIBLE4 ,C\LD IT NOT BE ! CASE ?AT AFT] A C]TA9 PO9T QUANTITY W\LD BE TRANS=M$ 9TO QUALITY8 ,WAS IT NOT ! CASE ?AT ONCE ! PR9CIPLE MEANS ( PRODUCTION HAD BE5 NATIONALIZ$ & ! LA/ MAJOR CAPITALI/ EXPROPRIAT$ CAPITALISM HAD NECESS>ILY BE5 OBJECTIVELY ABOLI%$8 ,& WAS ?IS NOT ! CASE = ,RUSSIA FOLL[+ ! ,OCTOB] REVOLUTION8 

,TO C\NT] ?IS CONT5TION1 ?AT C\LD ALL TOO EASILY BE ADVANC$ BY HIS ,TROTSKYI/ CRITICS1 ,CLIFF >GU$ ?AT ! QUALITATIVE %IFT FROM CAPITALISM TO ! TRANSITION TO SOCIALISM C\LD NOT BE SIMPLY CALCULAT$ FROM ! 'P]C5TAGE' ( /ATE [N]%IP ( ! MEANS ( PRODUCTION4 ,IT WAS A TRANSITION ?AT WAS NECESS>ILY POLITICALLY DET]M9$4 ,AS WE HAVE SE51 ! T5D5CY T[>DS /ATE CAPITALISM WAS A RESULT ( ! GR[+ CONTRADICTION BETWE5 ! 9CREAS+LY SOCIAL =MS ( PRODUCTION & ! PRIVATE APPROPRIATION ( WEAL?4 ,COLLECTIVE1 & ULTIMATELY /ATE [N]%IP ( ! MEANS ( PRODUCTION W]E A MEANS TO RECONCILE ?IS CONTRADICTION :ILE AT ! SAME TIME PRES]V+ PRIVATE APPROPRIATION ( WEAL? & ) IT PRIVATE PROP]TY4 ,?US ! T5D5CY T[>DS /ATE CAPITALISM 9VOLV$ ! P>TIAL NEGATION ( PRIVATE PROP]TY ON ! BASIS ( PRIVATE PROP]TY ITSELF4 

,SO AT ! LIMIT1 /ATE CAPITALISM C\LD BE SE5 AS ! 'P>TIAL NEGATION ( CAPITALISM ON ! BASIS ( CAPITALISM ITSELF'4 ,SO LONG AS ! /ATE ECONOMY WAS RUN TO EXPLOIT ! WORK+ CLASS 9 ! 9T]E/S ( AN EXPLOITATIVE CLASS !N ! ECONOMY REMA9$ /ATE CAPITALI/4 ,H[EV]1 IF ! WORK+ CLASS SEIZ$ P[] & RAN ! /ATE ECONOMY 9 ! 9T]E/S ( ! PEOPLE AS :OLE !N /ATE CAPITALISM W\LD GIVE WAY TO A WORK]S' /ATE & ! TRANSITION TO SOCIALISM C\LD BEG94 ,?US /ATE CAPITALISM WAS A TURN+ PO9T1 IT WAS ! F9AL SWAN SONG ( CAPITALISM1 BUT ONCE ! WORK+ CLASS SEIZ$ ! /ATE IT W\LD BE ! BASIS = ! TRANSITION TO SOCIALISM4 

,H[EV]1 IT C\LD BE OBJECT$ ?AT MANY REVOLUTION>Y ,M>XI/S1 9CLUD+ ,TROTSKY HIMSELF1 HAD EXPLICITLY D5I$ ?AT CAPITALISM C\LD REA* ! LIMIT ( /ATE CAPITALISM4 ,9DE$1 AGA9/ ! RE=MI/S 9 ! ,SECOND ,9T]NATIONAL1 :O HAD >GU$ ?AT CAPITALISM W\LD NATURALLY EVOLVE 9TO /ATE CAPITALISM :I* C\LD !N BE SIMPLY TAK5 OV] BY DEMOCRATICALLY CAPTUR+ ! /ATE1 REVOLUTION>Y ,M>XI/S HAD >GU$ ?AT1 :ILE !RE WAS A T5D5CY T[>DS /ATE CAPITALISM1 IT C\LD NEV] BE FULLY REALIZ$ 9 PRACTICE DUE TO ! RIVALRIES BETWE5 CAPITALI/S & BY ! V]Y ?REAT ( EXPROPRIATION ( ! /ATE BY ! WORK+ CLASS4 

,CLIFF C\NT]$ ?IS BY >GU+ ?AT SU* >GUM5TS HAD ONLY APPLI$ TO ! CASE ( ! EVOLUTION ( TRADITIONAL CAPITALISM 9TO /ATE CAPITALISM4 ,9 ,RUSSIA !RE HAD BE5 A REVOLUTION1 ?AT HAD EXPROPRIAT$ ! CAPITALI/ CLASS & 9TRODUC$ A WORK]S' /ATE1 & !N A C\NT]-REVOLUTION1 :I* HAD RE/OR$ CAPITALISM 9 ! =M ( /ATE CAPITALISM RUN 9 ! 9T]E/S ( A NEW BUREAUCRATIC CLASS4 ,= ,CLIFF1 ! ,RUSSIAN ,REVOLUTION HAD CREAT$ A WORK]S' /ATE1 BUT1 ISOLAT$ BY ! FAILURE ( SOCIALI/ REVOLUTIONS ELSE:]E 9 ,EUROPE1 ! WORK]S' /ATE HAD DEG5]AT$4 ,) ! DEG5]ATION ( ! WORK]S' /ATE ! BUREAUCRACY 9CREAS+LY BECAME SEP>AT$ FROM ! WORK+ CLASS UNTIL1 ) ,/AL9'S ASC5DANCY1 IT WAS ABLE TO CON/ITUTE ITSELF AS A NEW EXPLOITATIVE CLASS & SEIZE /ATE P[]4 ,) ! BUREAUCRACY'S SEIZURE ( P[] ! WORK]S' /ATE WAS OV]-TURN$ & /ATE CAPITALISM WAS RE/OR$ TO ,RUSSIA4 

,?IS P]IODIZATION ( PO/-REVOLUTION>Y ]A 9 ,RUSSIA NOT ONLY ALL[$ ,CLIFF TO OV]COME ! OBJECTION ?AT ,TROTSKY HAD D5I$ ! POSSIBILITY ( B\RGEOIS SOCIETY FULLY REALIZ+ ! T5D5CY T[>DS /ATE CAPITALISM1 BUT ALSO ALL[$ HIM TO ACCEPT MO/ ( ,TROTSKY'S ANALYSIS ( ! ,RUSSIAN ,REVOLUTION & ITS AFT]MA?4 ,CLIFF ONLY HAD TO P>T WAYS ) ,TROTSKY = ! ANALYSIS ( ! T5 YE>S FOLL[+ #a#i#b#h1 :]E ,TROTSKY MA9TA9$ ?AT ! ,U,S,S,R HAS REMA9$ A DEG5]AT$ WORK]S' /ATE :ILE ,CLIFF >GU$ ?AT IT HAD BECOME /ATE CAPITALI/4 ,YET1 AS WE %ALL SEE1 ?IS P]IODIZATION1 DESPITE ALL ITS ADVANTAGES = ,CLIFF'S CR$IBILITY AS A ,TROTSKYI/1 WAS TO PROVE AN IMPORTANT WEAK PO9T 9 HIS !ORY4 ,BUT BE=E LOOK+ AT ! WEAK PO9TS ( ,CLIFF'S !ORY ( /ATE CAPITALISM WE MU/ FIR/ EXAM9E MORE CLOSELY :AT ,CLIFF SAW AS ! NATURE ( /ATE CAPITALISM 9 ,/AL9'S ,RUSSIA4 

,AS WE HAVE SE51 AL?\< ,CLIFF UNCRITICALLY DEF5D$ ! OR?ODOX ,M>XI/ DEF9ITION ( CAPITALISM1 HE WAS ABLE TO C\NT] ! OBJECTIONS ?AT ! ,U,S,S,R C\LD NOT BE 9 ANY S5SE CAPITALI/ BECAUSE !RE WAS NEI!R ! LAW ( VALUE NOR PRIVATE PROP]TY1 BY >GU+ ?AT /ATE CAPITALISM WAS ! 'P>TIAL NEGATION ( CAPITALISM ON ! BASIS ( CAPITALISM ITSELF'4 ,SO :AT DID HE MEAN BY '! P>TIAL NEGATION ( CAPITALISM'8 ,CLE>LY CAPITALISM C\LD NOT BE COMPLETELY NEGAT$ O!RWISE IT W\LD NOT BE CAPITALISM2 SO 9 :AT S5SE IS ! NEGATION ( CAPITALISM P>TIAL8 ,) ,CLIFF ! MEAN+ ( ! P>TIAL NEGATION ( CAPITALISM BECOMES MO/ EVID5T 9 T]MS ( ! LAW ( VALUE4 

,FOLL[+ ,M>X1 ,CLIFF >GU$ ?AT UND] CAPITALISM !RE IS A TWO-FOLD DIVISION ( LABOR4 ,FIR/ ( ALL !RE IS ! DIVISION ( LABOR ?AT >ISES BETWE5 CAPITALI/ 5T]PRISES :I* IS REGULAT$ BY ! LAW ( VALUE ?AT OP]ATES ?R\< ! 'AN>*Y ( ! M>KET'4 ,SECONDLY !RE IS ! DIVISION ( LABOR ?AT >ISES )9 EA* CAPITALI/ 5T]PRISE :I* IS DIRECTLY DET]M9$ BY ! RATIONAL & CONSCI\S DICTATES ( ! CAPITALI/S OR !IR MANAG]S4 ,( C\RSE ! SECOND DIVISION ( LABOR IS SUBORD9AT$ TO ! LAW ( VALUE 9S(> AS ! CAPITALI/ 5T]PRISE HAS TO COMPETE ON ! M>KET4 ,H[EV]1 ! LAW ( VALUE APPE>S AS EXT]NAL TO IT4 

,= ,CLIFF ! ,U,S,S,R ACT$ AS IF IT WAS SIMPLY ONE HUGE CAPITALI/ 5T]PRISE4 ,AS SU* ! LAW ( VALUE NO LONG] OP]AT$ )9 ! ,U,S,S,R1 IT HAD BE5 NEGAT$ ) ! NATIONALIZATION ( PRODUCTION & ! 9TRODUCTION ( COMPREH5SIVE /ATE PLANN+4 ,BUT1 9S(> AS ! ,U,S,S,R WAS OBLIG$ TO COMPETE BO? ECONOMICALLY & POLITICALLY )9 ! CAPITALI/ WORLD SY/EM IT BECAME SUBORD9AT$ TO ! LAW ( VALUE LIKE ANY CAPITALI/ 5T]PRISE4 ,9 ?IS S5SE1 = ,CLIFF1 ! LAW ( VALUE WAS ONLY 'P>TIALLY NEGAT$ ON ! BASIS ( ! LAW ( VALUE ITSELF'4 

,YET1 IF NEI!R M>KET NOR ! LAW ( VALUE OP]AT$ )9 ! ,U,S,S,R ?IS IMPLI$ ?AT PRODUCTS W]E NOT REALLY B\<T & SOLD )9 ! ,U,S,S,R AS COMMODITIES1 !Y W]E SIMPLY ALLOCAT$ & TRANSF]R$ 9 ACCORDANCE ) ADM9I/RATIVE PRICES4 ,IF ?IS WAS TRUE !N IT ALSO IMPLI$ ?AT LABOR-P[] WAS NOT REALLY A COMMODITY2 A CONCLUSION ?AT ,CLIFF WAS =C$ TO ACCEPT4 ,9DE$1 AS ,CLIFF >GU$1 IF LABOR-P[] WAS TO BE A COMMODITY !N ! WORK] HAD TO BE FREE TO SELL IT P]IODICALLY TO ! HI<E/ BIDD]4 ,IF ! WORK] C\LD ONLY SELL HIS ABILITY TO WORK ONCE & = ALL !N HE WAS LITTLE DIFF]5T FROM A SLAVE S9CE 9 EFFECT HE SOLD HIMSELF NOT HIS LABOR-P[]4 ,YET 9 ! ,U,S,S,R ! WORK] C\LD ONLY SELL HIS LABOR-P[] TO ONE EMPLOY]1 ! /ATE4 ,H5CE ! WORK] WAS NOT FREE TO SELL TO ! HI<E/ BIDD] & LABOR-P[] WAS NOT REALLY A COMMODITY4 

,! FLAWS 9 ,CLIFF'S !ORY ( /ATE CAPITALISM 

,AT FIR/ SI<T ,CLIFF PROVIDES A CONV9C+ !ORY ( /ATE CAPITALISM 9 ! ,U,S,S,R :I* NOT ONLY REMA9S FIRMLY )9 ! BROAD OR?ODOX ,M>XI/ TRADITION1 BUT ALSO PRES]VES MU* ( ,TROTSKY'S CONTRIBUTION TO ?IS TRADITION4 ,AS ! PO/W> ]A UNFOLD$ LEAV+ ! ,/AL9I/ BUREAUCRACY MORE FIRMLY 5TR5*$ ?AN EV]1 ,CLIFF'S ANALYSIS ( ! ,U,S,S,R BECAME 9CREAS+LY ATTRACTIVE4 ,)\T ! PROBLEMS FAC+ OR?ODOX ,TROTSKYI/ GR\P+S FOLL[+ ! APP>5T FAILURE ( ,TROTSKY'S PR$ICTIONS ( ! FALL ( ! ,/AL9I/ BUREAUCRACY1 ,CLIFF1 UND] ! SLOGAN ( 'NEI!R ,WA%+TON NOR ,MOSC['1 WAS 9 A P]FECT POSITION TO ATTRACT SUPPORT]S ) ! REVIVAL ( 9T]E/ 9 ,L59ISM & ,TROTSKYISM ( ! #a#i#fS & #a#i#gS4 ,9DE$1 ) ! ,9T]NATIONAL ,SOCIALI/S ,GR\P1 :I* !N BECAME ! ,SOCIALI/ ,WORK]S' ,P>TY1 ,CLIFF HAS BE5 ABLE TO BUILD ONE ( ! L>GE/ ,L59I/ GR\P+S 9 ,BRITA9 :OSE MO/ DI/9CTIVE FEATURE HAS BE5 ITS REFUSAL TO TAKES SIDES 9 ! ,COLD ,W>4.<#c#f.> 

,H[EV]1 DESPITE ! ATTRACTIV5ESS ( ,CLIFF'S !ORY ( /ATE CAPITALISM 9 ! ,U,S,S,R1 ON CLOSE 9SPECTION WE F9D HIS !ORY HAS VITAL WEAKNESSES :I* HAVE BE5 SEIZ$ ON BY MORE OR?ODOX ,TROTSKYI/S4 ,9DE$1 !SE WEAKNESSES >E SO S]I\S ?AT MANY HAVE CONCLUD$ ?AT ,CLIFF'S !ORY IS FATALLY FLAW$4 ,?IS OP9ION HAS EV5 BE5 RECOGNIZ$ )9 ! ,S,W,P ITSELF & HAS RESULT$ 9 V>I\S ATTEMPTS TO RECON/RUCT ,CLIFF'S ORIG9AL !ORY4.<#c#g.> ,AS WE %ALL >GUE1 !SE FLAWS 9 ,CLIFF'S !ORY >ISE TO A L>GE EXT5T FROM HIS DET]M9ATION TO AVOID CRITICAL CONFRONTATION ) BO? ,TROTSKY & ! BROAD] OR?ODOX ,M>XI/ TRADITION4 

,!RE >E ?REE MA9 FLAWS )9 ,CLIFF'S !ORY ( /ATE CAPITALISM 9 ! ,U,S,S,R4 ,! FIR/ CONC]NS ,CLIFF'S 9SI/5CE ?AT ! F9AL ASC5DANCY ( ,/AL91 & ) ?IS ! 9TRODUCTION ( ! FIR/ FIVE YE> PLAN1 M>K$ A C\NT]-REVOLUTION :I* OV]?REW ! WORK]S' /ATE E/ABLI%$ BY ! ,OCTOB] REVOLUTION & TURN$ ,RUSSIA OV] TO /ATE CAPITALISM4 ,! ISSUE ( :5 ! ,U,S,S,R BECAME /ATE CAPITALI/ IS CLE>LY A S5SITIVE ONE = ,TROTSKYI/S S9CE1 IF ,CLIFF IS UNABLE TO HOLD ! L9E AT #a#i#b#h1 !N :AT IS TO /OP ! DATE ( ! DEFEAT ( ! REVOLUTION BE+ PU%$ RI<T BACK TO #a#i#a#g8 ,L59 & ,TROTSKY W\LD !N BE SE5 AS LEAD+ A REVOLUTION ?AT SIMPLY 9TRODUC$ /ATE CAPITALISM 9TO ,RUSSIA6 ,SU* FE>S W]E CLE> EXPRESS$ BY ,T$ ,GRANT 9 HIS RESPONSE TO ,CLIFF'S ORIG9AL PRES5TATION ( HIS !ORY 9 ,! ,NATURE ( ,/AL9I/ ,RUSSIA4 ,!N ,T$ ,GRANT W>N$3 

,IF COMRADE ,CLIFF'S !SIS IS CORRECT1 ?AT /ATE CAPITALISM EXI/S 9 ,RUSSIA TODAY1 !N HE CANNOT AVOID ! CONCLUSION ?AT /ATE CAPITALISM HAS BE5 9 EXI/5CE S9CE ! ,RUSSIAN ,REVOLUTION & ! FUNCTION ( ! ,REVOLUTION ITSELF WAS TO 9TRODUCE ?IS /ATE CAPITALI/ SY/EM ( SOCIETY4 ,= DESPITE HIS TORTU\S EF=TS TO DRAW A L9E BETWE5 ! ECONOMIC BASIS ( ,RUSSIAN SOCIETY BE=E ! YE> #aibh & AFT]1 ! ECONOMIC BASIS ( ,RUSSIAN SOCIETY HAS 9 FACT REMA9$ UN*ANG$4 7,T$ ,GRANT1 ,! ,UNBROK5 ,?READ1 P4 #a#i#i7 

,! FIR/ L9E ( ATTACK ?AT HAS BE5 TAK5 BY OR?ODOX ,TROTSKYI/S HAS BE5 TO >GUE ?AT IF !RE HAD BE5 A C\NT]-REVOLUTION AGA9/1 RA!R ?AN FROM )91 ! REVOLUTION ITSELF1 :I* RE/OR$ ,RUSSIA TO CAPITALISM1 !N ! WORK]S' /ATE W\LD HAVE TO HAVE BE5 VIOL5TLY SMA%$4 ,ANY ATTEMPT TO >GUE = A GRADUAL & PEACEFUL RE/ORATION ( CAPITALISM W\LD1 AS ,TROTSKY HIMSELF HAD SAID1 SIMPLY BE 'RUNN+ BACKW>DS ! FILM ( REVISIONISM'4.<#c#h.> ,YET1 DESPITE ! EXPULSIONS ( ,TROTSKY & ! ,UNIT$ & ,LEFT ,OPPOSITIONS 9 #a#i#b#h1 ! LEAD]%IP ( ! ,P>TY & ! /ATE REMA9$ L>GELY 9TACT4 ,9DE$ !RE SEEMS MORE ( A CONT9UITY )9 ! /ATE BE=E #aibh & AFT]W>DS RA!R ?AN ANY %>P BREAK ?AT W\LD 9DICATE A C\NT]-REVOLUTION1 LET ALONE ANY VIOL5T C\P D'ETAT OR VIOL5T C\NT]-REVOLUTION>Y ACTION4 

,CLIFF ATTEMPT$ TO C\NT] ?IS L9E ( ATTACK BY >GU+ ?AT :ILE IT IS NECESS>Y = A PROLET>IAN REVOLUTION TO SMA% ! B\RGEOIS /ATE 9 ORD] TO CON/RUCT A NEW REVOLUTION>Y PROLET>IAN /ATE1 IT IS NOT NECESS>ILY ! CASE ?AT A C\NT]-REVOLUTION HAS TO SMA% AN EXI/+ WORK]S' /ATE4.<#c#i.> ,! EXAMPLE ,CLIFF US$ WAS ?AT ( ! >MY4 ,9 ORD] TO CREATE A WORK]S' /ATE ! B\RGEOIS /&+ >MY HAS TO BE TRANS=M$ 9TO A WORK]S' MILITIA4 ,BUT ANY SU* TRANS=MATION 9EVITABLY W\LD BE RESI/$ BY ! (FIC] CORP4 ,SU* RESI/ANCE W\LD HAVE TO BE VIOL5TLY CRU%$4 ,9 CONTRA/1 ! (FIC]S ( A WORK]S' MILITIA MAY BECOME 9CREAS+LY 9DEP5D5T TO ! PO9T AT :I* !Y BECOME P>T ( ! BUREAUCRACY !REBY TRANS=M+ ! WORK]S' MILITIA 9TO A B\RGEOIS /&+ >MY4 ,SU* A PROCESS1 9 :I* A WORK]S' MILITIA BECOMES TRANS=M$ 9TO A /&+ >MY1 DOES NOT NECESS>ILY MEET ANY CONC]T$ RESI/ANCE1 & AS A CONSEQU5CE MAY OCCUR GRADUALLY4 

,YET SU* AN >GUM5T BY ITSELF FAILS TO P9 ! C\NT]-REVOLUTION>Y BREAK ON #a#i#b#h4 ,9DE$1 ,CLIFF'S EXAMPLE W\LD SEEM TO IMPLY ?AT ! C\NT]-REVOLUTION WAS BR\<T AB\T BY ,TROTSKY HIMSELF :5 HE TOOK *>GE ( RE-ORGANIZ+ ! ,R$ ,>MY 9 #aiah ON ! L9ES ( A CONV5TIONAL /&+ >MY6 ,! ONLY OV]T POLITICAL 9DICATION ,CLIFF IS ABLE TO PRES5T = ! BUREAUCRATIC C\NT]-REVOLUTION IS ! ,MOSC[ %[ TRIALS & PURGES1 :I* HE CLAIMS W]E3 

! CIVIL W> ( ! BUREAUCRACY AGA9/ ! MASSES1 A W> 9 :I* ONLY ONE SIDE WAS >M$ & ORGANIZ$4 ,!Y WITNESS$ ! CONSUMMATION ( ! BUREAUCRACY'S TOTAL LIB]ATION FROM POPUL> CONTROL4 7,/ATE ,CAPITALISM 9 ,RUSSIA1 P4 #a#i#e7 

,YET ! ,MOSC[ %[ TRIALS OCCURR$ 9 ! #a#i#cS1 NOT 9 #a#i#b#h4 

,:AT WAS CRUCIAL AB\T #aibh WAS ?AT IT WAS ! YE> ?AT M>K$ ! BEG9N+ ( ! FIR/ FIVE YE> PLAN & ! BUREAUCRACY'S COMMITM5T TO ! RAPID 9DU/RIALIZATION ( ,RUSSIA4 ,= ,CLIFF1 BY ADOPT+ ! OV]RID+ IMP]ATIVE ( 9DU/RIALIZ+ ,RUSSIA1 REG>DLESS ( ! HUMAN CO/ ?IS W\LD 9VOLVE1 ! ,SOVIET BUREAUCRACY HAD TAK5 ON ! HI/ORIC ROLE ( ! B\RGEOISIE4 ,9 ADOPT+ BO? ! ECONOMIC & HI/ORIC FUNCTIONS ( ! B\RGEOISIE ! BUREAUCRACY HAD TRANS=M$ ITSELF 9TO AN EXPLOITATIVE CLASS4 ,:]EAS BE=E #aibh ! BUREAUCRACY HAD SIMPLY BE5 A PRIVILEG$ LAY] )9 A DEG5]AT$ WORK]S' /ATE ?AT WAS ABLE TO GA9 MORE ?AN ITS FAIR %>E ( ! NATION'S WEAL?1 AFT] #aibh ! BUREAUCRACY BECAME ! /ATE CAPITALI/S :O COLLECTIVELY EXPLOIT$ ! WORK+ CLASS4 

,( C\RSE1 IT WAS NOT DIFFICULT = ,CLIFF TO %[ ?AT !RE HAD BE5 A %>P DECREASE 9 ! MAT]IAL CONDITIONS ( ! WORK+ CLASS FOLL[+ ! 9TRODUCTION ( ! FIR/ FIVE YE> PLAN AS ! BUREAUCRACY S\<T TO MAKE ! PROLET>IAT PAY ! HUGE CO/S ( ! POLICY ( RAPID 9DU/RIALIZATION4 ,H[EV]1 ,CLIFF'S >GUM5T ?AT ?IS %>P DECREASE 9 MAT]IAL CONDITIONS ( ! WORK+ CLASS REPRES5T$ A QUALITATIVE %IFT T[>DS ! EXPLOITATION ( ! WORK+ CLASS BY ! BUREAUCRACY WAS F> FROM CONV9C+4 ,IF ANY?+ ,CLIFF'S ATTEMPTS TO %[ A QUALITATIVE %IFT 9 SOCIAL RELATIONS ( PRODUCTION ONLY S]VE TO 9DICATE ?AT BUREAUCRATIC EXPLOITATION ( ! WORK+ CLASS HAD EXI/$ BE=E #a#i#b#h4 

,YET P]HAPS MORE DEVA/AT+ TO ! CR$IBILITY ( ,CLIFF'S L9E ( >GUM5T AMONG ,TROTSKYI/S WAS ?AT BY SUGGE/+ ?AT ) ! IMPOSITION ( ! POLICY ( RAPID 9DU/RIALIZATION ! BUREAUCRACY HAD F9ALLY TRANS=M$ ITSELF 9TO AN EXPLOITATIVE CLASS1 & 9 DO+ SO TRANS=M$ ,RUSSIA FROM A DEG5]AT$ WORK]S' /ATE 9TO /ATE CAPITALISM1 ,CLIFF WAS 9 EFFECT ATTACK+ ,TROTSKY6 ,HAD IT NOT BE5 ! MA9 CRITICISM ADVANC$ BY ,TROTSKY & ! ,LEFT ,OPPOSITION AGA9/ ,/AL9 ?AT HE HAD NOT 9DU/RIALIZ$ SOON 5\<86 ,WAS NOT ! C5TRAL PLANK ( ,TROTSKY'S UND]/&+ ( ! ,RUSSIAN ,REVOLUTION ?AT ! PRODUCTIVE =CES HAD TO BE ADVANC$ AS FA/ AS POSSIBLE IF !RE WAS TO BE ANY HOPE ( SOCIALISM8 ,IF ?IS WAS SO1 WAS NOT ,CLIFF ACCUS+ ,TROTSKY ( ADVOCAT+ /ATE CAPITALISM86 ,ULTIMATELY ,CLIFF IS UNABLE TO CIRCUMV5T ,TROTSKY'S 9TR9SIC COMPLICITY ) ,/AL94 ,AS A CONSEQU5CE1 ! FAILURE TO BREAK ) ,TROTSKYISM L$ TO ?IS VITAL FLAW 9 ,CLIFF'S !ORY ( /ATE CAPITALISM 9 ,RUSSIA4 

,YET ?IS IS NOT ALL4 ,CLIFF'S FAILURE TO CRITICALLY CONFRONT OR?ODOX ,M>XISM OP5$ UP ANO!R EV5 MORE IMPORTANT WEAKNESS 9 HIS !ORY ( /ATE CAPITALISM :I* HAS BE5 SEIZ$ UPON BY HIS MORE OR?ODOX ,TROTSKYI/ CRITICS4 ,?IS WEAKNESS /EMM$ FROM ,CLIFF'S D5IAL ( ! OP]ATION ( ! LAW ( VALUE )9 ! ,U,S,S,R4 

,AS WE HAVE SE51 = ,CLIFF ! ,U,S,S,R WAS CON/ITUT$ AS IF IT WAS ONE HUGE CAPITALI/ 5T]PRISE4 ,AS SU* !RE C\LD BE NO OP]ATION ( ! LAW ( VALUE 9T]NAL TO ! ,U,S,S,R4 ,H[EV]1 AS ,M>X PO9T$ \T1 IT IS ONLY ?R\< ! OP]ATION ( ! LAW ( VALUE ?AT ANY CAPITALI/ 5T]PRISE IS CON/RA9$ TO ACT AS CAPITAL4 ,IF !RE WAS NO LAW ( VALUE 9T]NAL TO ! /ATE ECONOMY ( ! ,U,S,S,R :AT MADE IT ACT AS IF IT WAS A CAPITALI/ 5T]PRISE8 ,! ANSW] WAS ! ,SOVIET ,UNION'S RELATION TO WORLD CAPITALISM4 ,IT WAS ?R\< ! COMPETITIVE POLITICAL & ECONOMIC RELATION TO ! RE/ ( ! CAPITALI/ WORLD ?AT ! ,SOVIET ,UNION WAS SUBORD9AT$ TO ! LAW ( VALUE1 & IT WAS ?R\< ?IS SUBORD9ATION TO ! LAW ( VALUE ?AT ! CAPITALI/ NATURE ( ! ,U,S,S,R BECAME EXPRESS$4 

,H[EV]1 AS ,CLIFF RECOGNIZ$1 ! ,SOVIET ,UNION1 ) ITS HUGE NATURAL RES\RCES1 HAD BECOME L>GELY SELF-SUFFICI5T4 ,=EIGN TRADE ) ! RE/ ( ! WORLD WAS M9IMAL COMP>$ ) ! AM\NT PRODUC$ & CONSUM$ )9 ,RUSSIA ITSELF4 ,AS A RESULT ,CLIFF C\LD NOT >GUE ?AT ! 9T]NATIONAL LAW ( VALUE IMPOS$ ITSELF ON ! ,RUSSIAN ECONOMY ?R\< ! NECESSITY TO COMPETE ON ! WORLD M>KET4 ,9/EAD1 ,CLIFF HAD TO >GUE ?AT ! LAW ( VALUE IMPOS$ ITSELF 9DIRECTLY ON ! ,U,S,S,R ?R\< ! NECESSITY TO COMPETE POLITICALLY ) ! MAJOR CAPITALI/ & IMP]IALI/ P[]S4 ,9 ORD] TO KEEP UP ) ! >MS RACE1 P>TICUL>LY ) ! EM]G5CE ( ! ,COLD ,W> ) ! ,U,S,A1 ! ,U,S,S,R HAD TO ACCUMULATE HUGE AM\NTS ( MILIT>Y H>DW>E4 ,?IS DRIVE = MILIT>Y ACCUMULATION L$ ! DRIVE = ACCUMULATION ELSE:]E 9 ! ,RUSSIAN ECONOMY4 ,9DE$1 ?IS MILIT>Y COMPETITION C\LD BE SE5 TO SPUR CAPITAL ACCUMULATION1 & ) IT ! EXPLOITATION ( ! WORK+ CLASS1 JU/ AS MU*1 IF NOT MORE SO1 ?AN ANY ECONOMIC COMPETITION FROM ! WORLD M>KET C\LD HAVE DONE4.<#d.> 

,H[EV]1 AS ,CLIFF'S ,TROTSKYI/ CRITICS PO9T \T1 = ,M>X ! LAW ( VALUE DOES NOT IMPOSE ITSELF ?R\< 'COMPETITION' AS SU*1 BUT ?R\< ! COMPETITIVE EX*ANGE ( COMMODITIES4 ,9DE$1 IT IS ONLY ?R\< ! EX*ANGE ( COMMODITIES ?AT VALUE IS =M$1 & H5CE IT IS ONLY ?R\< SU* EX*ANGE ?AT ! LAW ( VALUE CAN COME TO IMPOSE ITSELF4 ,MILIT>Y ACCUMULATION IS NOT DIRECTLY AN ACCUMULATION ( VALUES BUT AN ACCUMULATION ( USE-VALUES4 ,9 A CAPITALI/ ECONOMY SU* AN ACCUMULATION CAN BECOME P>T ( ! OV]ALL PROCESS ( ! ACCUMULATION ( VALUE1 & H5CE ( CAPITAL1 9S(> AS IT GU>ANTEES ! ACCUMULATION ( CAPITAL 9 ! FUTURE BY PROTECT+ OR ELSE EXT5D+ =EIGN M>KETS4 ,H[EV]1 9 ITSELF MILIT>Y ACCUMULATION IS SIMPLY AN ACCUMULATION ( ?+S1 NOT CAPITAL4 ,SO 9 CAPITALI/ C\NTRIES MILIT>Y SP5D+ SUPPRESSES VALUE & ! LAW ( VALUE TEMPOR>ILY 9 ORD] TO EXT5D IT LAT]4 ,GIV5 ?AT ! ,SOVIET ,UNION DID NOT SEEK TO EXP& VALUE PRODUCTION ?R\< ! CONQUE/ ( NEW M>KETS1 MILIT>Y PRODUCTION MEANT ! P]MAN5T SUPPRESSION ( VALUE & ! LAW ( VALUE 9 ?AT IT WAS SIMPLY ! PRODUCTION ( USE-VALUES REQUIR$ TO DEF5D A SY/EM BAS$ ON ! PRODUCTION ( USE-VALUES4 

,= ! MORE SOPHI/ICAT$ ,TROTSKYI/S1 ,CLIFF'S ATTEMPT TO 9VOKE MILIT>Y COMPETITION AS ! MEANS ?R\< :I* ! ,U,S,S,R WAS SUBORD9AT$ TO ! LAW ( VALUE EXPOS$ ! FUNDAM5TAL !ORETICAL WEAKNESS ( ,CLIFF'S !ORY ( /ATE CAPITALISM 9 ,RUSSIA4 ,! >GUM5T PUT =W>D BY ,CLIFF ?AT UND] /ATE CAPITALISM '! ACCUMULATION ( VALUE TURNS 9TO ITS OPPOSITE ! ACCUMULATION ( USE-VALUES' IS NO?+ BUT A SOPHI/RY :I* /RIPS AWAY ! SPECIFIC SOCIAL =MS ?AT >E ESS5TIAL TO DEF9E A P>TICUL> MODE ( PRODUCTION SU* AS CAPITALISM4 ,AS !Y CORRECTLY PO9T \T1 CAPITAL IS NOT A ?+ BUT A SOCIAL RELATION ?AT GIVES RISE TO SPECIFIC SOCIAL =MS4 ,! FACT ?AT MILIT>Y H>DW>E IS ACCUMULAT$ IS 9 NO WAY ! SAME ?+ AS ! ACCUMULATION ( CAPITAL4 ,)\T ! PRODUCTION ( COMMODITIES !RE CAN BE NO VALUE & )\T VALUE !RE CAN BE NO ACCUMULATION ( CAPITAL4 ,BUT ,CLIFF >GUES !RE IS NO PRODUCTION ( COMMODITIES 9 ! ,U,S,S,R1 P>TICUL>LY NOT 9 ! MILIT>Y 9DU/RIES1 S9CE NO?+ IS PRODUC$ = A M>KET1 ?US !RE CAN BE NEI!R VALUE NOR CAPITAL4 

,?IS PO9T CAN BE FUR!R PRESS$ HOME ONCE ,CLIFF'S CRITICS TURN TO ! QUE/ION ( LABOR-P[]4 ,= ,M>X ! SPECIFIC NATURE ( ANY MODE ( PRODUCTION WAS DET]M9$ BY BO? ! MANN] & =MS ?R\< :I* ! DOM9ANT CLASS >E ABLE TO EXTRACT SURPLUS-LABOR FROM ! DIRECT PRODUC]S4 ,)9 ! CAPITALI/ MODE ( PRODUCTION SURPLUS-LABOR IS EXTRACT$ FROM ! DIRECT PRODUC]S BY ! PUR*ASE ( ! WORK]'S LABOR-P[] AS A COMMODITY4 ,AS A CONSEQU5CE1 SURPLUS-LABOR IS EXPROPRIAT$ 9 ! =M ( SURPLUS-VALUE :I* IS ! DIFF]5CE BETWE5 ! VALUE ( LABOR-P[] 7I4E4 ! CO/S ( REPRODUC+ ! WORK]'S ABILITY TO WORK7 & ! VALUE ! WORK] CREATES ?R\< WORK+4 ,H[EV]1 = ,CLIFF1 LABOR-P[] WAS NOT A COMMODITY 9 ! ,U,S,S,R & WAS NOT !RE=E REALLY SOLD4 ,BUT IF LABOR-P[] WAS NOT A COMMODITY IT C\LD NOT HAVE A VALUE1 & H5CE ANY SURPLUS-LABOR EXTRACT$ C\LD NOT TAKE ! =M ( SURPLUS-VALUE4 ,IF SURPLUS-LABOR DID NOT TAKE ! =M ( SURPLUS-VALUE H[ C\LD ! ,U,S,S,R BE 9 ANY S5SE CAPITALI/ 9 /RICT ,M>XI/ T]MS86 

,! ?IRD FATAL FLAW 9 ,CLIFF'S !ORY ( /ATE CAPITALISM 9 ,RUSSIA1 & ONE ?AT >ISES FROM HIS COMMITM5T TO OR?ODOX ,M>XISM1 IS ! VIEW ?AT /ATE CAPITALISM IS ! HI<E/ /AGE ( CAPITALISM4 ,AS WE HAVE SE51 IT IS C5TRAL = ,CLIFF ?AT /ATE CAPITALISM WAS ! HI<E/ /AGE ( CAPITALISM S9CE IT WAS FROM ?IS PREMISE ?AT HE C\LD CLAIM ?AT /ATE CAPITALISM WAS AT ! PO9T ( TRANSITION FROM CAPITALISM TO SOCIALISM4 ,BUT IF /ATE CAPITALISM IS ! HI<E/ /AGE ( CAPITALISM1 & IF IT IS ACCEPT$ ?AT ! ,U,S,S,R IS /ATE CAPITALI/1 !N ?IS W\LD SEEM TO IMPLY ?AT1 9 SOME FUNDAM5TAL S5SE1 ! ,U,S,S,R %\LD BE 9 ADVANCE ( ,WE/]N CAPITALISM4 ,( C\RSE1 ?IS MAY HAVE SEEM$ REASONABLE 9 ! LATE #a#i#dS4 ,AFT] ALL1 UND] ,/AL9 ! ,U,S,S,R HAD MADE AN UNPREC$5T$ LEAP =W>D ) ! RAPID 9DU/RIALIZATION ( ,RUSSIA1 & IT SEEM$ ?AT ! ,SOVIET ,UNION WAS SET TO \T-P]=M MO/ ( CAPITALI/ ECONOMIES 9 ! ,WE/ 9 ! PO/W> ]A4 ,H[EV]1 9 ! FOLL[+ DECADES ! ECONOMIC /AGNATION & ECONOMIC WA/E ( ! ',SOVIET SY/EM' BECAME 9CREAS+LY APP>5T1 CULM9AT+ ) ! COLLAPSE ( ! ,U,S,S,R 9 #a#i#i4 ,?IS1 COMB9$ ) ! GLOBALIZATION ( CAPITAL1 :I* HAS S]I\SLY UND]M9$ ! EFFICACY ( /ATE 9T]V5TION 9 ,WE/]N CAPITALISM1 HAS MEANT ?AT ! NOTION ?AT CAPITALISM IS T5D+ T[>DS /ATE CAPITALISM IS N[ F> LESS CONV9C+ ?AN IT WAS FIFTY YE>S AGO4 ,AS WE %ALL SEE 9 ! NEXT ISSUE1 AL?\< ,CLIFF DID DEVELOP A !ORY TO EXPLA9 ! ECONOMIC /AGNATION 9 ! ,SOVIET ,UNION IT PROV$ 9SUFFICI5T TO EXPLA9 ! F9AL CRISIS & COLLAPSE ( ! ,U,S,S,R4 ,?IS PO9T HAS BE5 TAK5 UP ) RELI% BY ,CLIFF'S MORE OR?ODOX CRITICS1 :O N[ FEEL V9DICAT$ ?AT ! ,/AL9I/ SY/EM HAS PROV$ EPHEM]AL &1 AS ,TROTSKY PR$ICT$1 CAPITALISM HAS BE5 RE/OR$1 ALBEIT AFT] SOME DELAY4 

,SO1 DESPITE ITS PRACTICAL APPEAL DUR+ ! PO/W> ]A1 ,CLIFF'S !ORY ( /ATE CAPITALISM 9 ,RUSSIA WAS !ORETICALLY1 AT LEA/ = OR?ODOX ,TROTSKYI/S1 FATALLY FLAW$4 ,9DE$1 = ! MORE SOPHI/ICAT$ ,TROTSKYI/S ,CLIFF'S !ORY IS USUALLY DISMISS$ ) LITTLE MORE ADO1 & !N PRES5T$ AS AN EXAMPLE ( ! WEAKNESS ( ALL !ORIES ( /ATE CAPITALISM4 ,BUT ,CLIFF'S !ORY ( /ATE CAPITALISM 9 ! ,U,S,S,R IS BY NO MEANS ! ORIG9AL OR =EMO/ ONE1 AL?\< IT IS P]HAPS ! MO/ WELL KN[N4 ,9 ! NEXT ISSUE WE %ALL BEG9 BY CONSID]+ O!R !ORIES ( /ATE CAPITALISM 9 ! ,U,S,S,R ?AT HAVE >IS5 AMONG ! LEFT COMMUNI/S BE=E TURN+ TO EXAM9E ,TICKT9'S EF=TS TO GO BEYOND BO? ! !ORY ( ,RUSSIA AS A DEG5]AT$ WORK]S' /ATE & /ATE CAPITALI/ !ORIES4 

,FROM 3 ,!,AN>*I/,LIBR>Y4ORG4 

,*RONOLOGY 3 
,FEBRU>Y #a1 #bba 3 ,P>T #a1 ,*APT] #c -- ,ADD$4 

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