Is there a "Road" to Socialism? (1988)

Book Review from issue 5 of the World Socialist Review

State Capitalism: The Wages System Under New Management by Adam Buick & John Crump (The MacMillan Press Ltd, 1986)

You have only to attend a meeting of any of numerous groups identifying themselves as "socialist" or ’'communist” to find out one thing: with few exceptions, they do not define their immediate goal as being worldwide in scope. They regard replacing the buying and selling of necessary goods and services with free access to the same as a very long-term aspiration (though the notion enjoys wide acceptance as an abstraction). Between the cup of communism and the lip of capitalism, they claim, there lies a wide gap, and that gap can only be bridged by a complicated and unpredictable series of short-term objectives. Eventually society will be transformed, it is true, but not starting from the present reality as we currently understand it.

Those groups organized as formal political parties seeking to attract the support and/or the votes of workers and other sectors of the population thus find themselves nailed fairly tightly to a framework of nationalism which has to justify itself through an appeal to "proletarian internationalism" or something similar. Followers of Lenin and Trotsky. for example, advocate setting up a "workers’ state" which will liquidate the institutions and mechanisms by which private owners of the means of production perpetuated their legal monopoly over the output of goods and services. According to this scenario, the exploiting (capitalist) class continues in existence for a while but is sternly regimented by the party in control of the machinery of state and enjoying the well-informed support of the majority.

In State Capitalism Adam Buick and John Crump carefully dissect the concept of state ownership of the means of wealth production and lay bare the mass of rationalizations leading up to it. First they establish the general boundaries of discussion by defining what the term capitalism means, then they distinguish between two models of capitalism: the one traditionally accepted as such (private capitalism, the earliest form) and the other representing a number of historic adaptations or variants of capitalist monopoly over social production (in response to some structural failure on the part of the "private" model). Since this second type is characterized by the nationalization of enterprises--with or without a thoroughgoing state management of the system of production—it is of course best described as "state” capitalism.

This result can be accomplished in two ways. Either the state can bail out individual capitalists by taking over the legal proprietorship and control of their businesses without a major political upheaval occurring (as has become common in western Europe); or a revolutionary opposition can develop within the bosom of capitalist society and, with varying degrees of majority support, raze the preceding regime to the ground, totally reorganizing the system of exploitation (as in eastern Europe, Russia and China). In the second case, a new capitalist minority replaces the old, leaving the same or equivalent relations of production intact. Though from a narrowly legal angle the new minority renounces all private title to the system of production, they nevertheless retain monopoly control over it.

"Socialist” Profits?

In the fourth chapter, the authors deal with a question which everyone has sooner or later asked: What makes a state-capitalist economy different from a "classical" one? They tackle a couple of familiar old fallacies: namely, the belief that

"Socialist" profit is not capitalist profit because "all profits belong to the people" or, to put it another way, because "the state distributes profit for the benefit of the people. "Socialist" wages are not the mark of an exploited working class, but are the means by which social wealth is distributed according to each individual's contribution to production.

(Ch. 4, "The Capitalist Dynamic of State Capitalist Economies")

In the end, however, no matter on what ideological grounds wage exploitation is put into effect, the leopard cannot avoid keeping its spots. 

"Profit is pursued because, due to the competition which is inherent in world capitalism, state capital continually has to invest newly acquired surplus value in a compulsive effort to accumulate and hence expand itself." (p 101)

Before going on to socialism as the alternative to either state or private capitalism, they briefly outline some of the ideological underpinnings on which the justification for state capitalism rests, showing how the thinking of its advocates evolved out of "classical" socialist theory (as found in the writings of Marx or Engels) into its Leninist and post-Leninist forms.

Basic Features of Socialism

Having comprehensively sapped out the state-capitalist terrain, Buick and Crump have no difficulty elucidating the basic features of a socialist society: It must be worldwide; all goods and services will be produced for use only and distributed free; it will have no classes, states or national frontiers; no exchange of goods and services will take place—since there will no longer be any market to regulate consumption.

The disappearance of economic value would mean the end of "economic calculation" in the sense of calculation in units of "value" whether measured by money or directly in some unit of labour time. (Ch. 6, "The Alternative to Capitalism")

The need for planning will be met by establishing "a rationalized network of planned links" occupying the successive phases through which the cycle of production/consumption passes. "Planning" in that context will mean only the coordinating of "a direct interaction between hunan beings and nature." (The authority of economists rests partly in fact on the working class’s uncritical acceptance of their doctrine of an inherent natural scarcity. )

If the language in the last chapter makes heavy use of the conditional tense, this does not imply any prediction of utopia. It only acknowledges that workers have so far failed to shake themselves out of the slumber of poverty. This is a process which necessarily must take place on a world scale (if not everywhere at precisely the sane time); for a whole society to make the changeover to production for use requires a conscious understanding of the stakes by enough of the world's population to constitute a political force greater than any that capital can muster in its own defense.

Such an intense concentration of well-informed opinion has not yet occurred nor will it ever—if workers (including both highly paid professionals and exploited agriculturalists) continue to limit their thought horizons to those of the national state into which their destiny as wage slaves has thrust then. The admirable thing about State Capitalism is that it provides a sorely needed theoretical framework for tearing loose of the deadly embrace of nationalism This framework (as noted in the book) has been slowly emerging within the world socialist movement in the decades since the Bolshevik revolution, most significantly in the propaganda of our companion party, the Socialist Party of Great Britain. The book itself makes a highly readable contribution to this ongoing effort to create a class-conscious, socialist majority—one that will finally get capitalism's funeral cortege rolling toward the cemetery.

Blogger's Note:

Buick and Crump's book was also reviewed in the April 1987 issue of the Socialist Standard.