they cast their spell over the confused and scared masses of Soviet Russia,
is repeated even by some people who recognize the exploitation practiced
by the Soviet masters on the laboring population of Russia.
But they who find in the apparent absence of competition within
Russia a sign of the abolition of capitalism forget that what makes capitalist economy capitalist is precisely its mode of production.
Russia we are told is economically like Ford's general enterprise.
The various component plants deal with one another, — not on the commercial exchange basis, but as different departments of one concern.
However, the internal social organization they recognize as non-capitalist is that which is found within every capitalist factory, within every
The U.S.S.R. is a badly, loosely run trust of trusts, competing on the
world market against all other capitalists and carrying on a relation of
exchange—under the monopolist conditions dictated by the masters of
Soviet production—with the peasant millions of Russia. The Soviet State
representing the privileged interests of the non-productive social strata of
Russia (the officials, managers, army, police, writers, actors, publicists,
Party functionaries, etc.), is the single national capitalist. ("Capitalist" is
an economic unit.) "The category 'capitalist' has itself become a social
category. It has become 'socialized'—within the framework of capitalist
society." The Soviet State runs the national enterprise in the interests of
all the parasites—the non-producers —who, in Russia and abroad, live, in
small part or largely, on the surplus value (officials' salaries, "wages of
superintendence," royalties, etc., etc.) produced by the wage-slaves laboring in the all-inclusive national enterprise.
The national capitalist carries on a class struggle:
1. Against its own wage slaves. As in Nazi Germany, the State employer forbids the worker to change a job without permission. It dictates
wage tariffs to the workers. It contravenes any attempt at opposition on
the part of the workers by forcing them into its State ^'company" unions
and by holding over their heads the threat of the armed forces and its
"company" police. It drives and sweats the workers by means of the system
of piece work and bonus premiums.
2. Against the precapitalist producers of Russia: the peasants and
artisans. The State capitalist expropriates.the latter through arbitrary
monopolistic exchange of goods, in which it—the sole manufacturer, with
the machinery of State at its disposal—sets prices, "selling dear and buying cheap", It expropriates them through heavy taxation, as was and is
done by the capitalist State everywhere else, but not in such a high-handed,
brutal manner. When the peasants attempt to combat the monopolist capitalist by calling a "farmers' holiday", the State capitalist "collectivizes"
them. That is, it puts them into a situation where the peasants must depend
entirely on the State capitalist for their seed, implements and soil to be