Wednesday, February 23, 2011

Socialism is a Form of Capitalism

Socialism and communism are generally held as rival economic systems to capitalism, and more often than not, in the creation of economic spectra, are placed in complete opposition to capitalism.  However, as far as socialism and communism have existed historically, this is not the case.

First, remember that in order for capitalism to succeed, some sort of regulation/manipulation of the market is necessary.  The state has been, for the most part, the most important tool in achieving these ends.  However, the way in which a particular such "tool" may be utilized in a given situation (i.e. the degree of state organization of production, types of market regulations pursued, state spending patterns, etc.) is determined by its relation to the world market as a whole.  Thus, the level of state involvement in the market is an attribute of global relations and not a means by which to categorize isolated economic systems.

In socialist and communist nations, the state essentially acts as a large capitalist firm.  Production is still rooted in wage labor and generalized commodity production.  Participation in the world market still occurs, though certainly a different set of regional constraints are put in place via the state.

Take, for example, Russia.  Prior to the Revolution, the economy of the Russian Empire rested primarily on a feudal-type system of labor and production.  Industrialization was quite nascent and weak compared to its development within other imperial powers. The primary objective of the communist leadership after consolidating its power was to heavily increase its industrial base and "catch up" with the other powers.  As the sort of industrialization pursued by the communist leadership is precisely the sort which constitutes the basis of capitalism, Russia, under communist rule, became more capitalist (in other words, expanded capitalist relations of production at the expense of non-capitalist ones).

Thus, the types of socialism and communism that have existed throughout the last century are not alternatives to capitalism, but part of the capitalist system.

1 comment:

  1. "In socialist and communist nations, the state essentially acts as a large capitalist firm."
    This is highly inaccurate, the basis of socialism is worker ownership of the means of production and worker self management, AKA social ownership of the means of production. The idea of the state managing the firms within a socialist system is inherently authoritarian and antithetical to socialism (even more so to communism as a communist system would be a stateless one). What you're describing is not socialism but already exists in China (the biggest fascist country in the world) as state capitalism, AKA state ownership and management of the means of production.

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