Markets are the coordination mechanism, while the ownership structure is clearly capitalist in nature, because a huge amount of capital in China is privately owned. And yes, I am aware many prefer to call their brand of state capitalism “socialist market economy” instead.
That the state owns significant amounts (and the majority in key sectors) is a good thing.
Not a goal? Economic equality does seem to be a goal of China’s socialism… Common prosperity, with a reduction of extreme inequality as one of the key tenets.
I did. The fact that private capital exists in China does not make it capitalist. Capitalism, as a mode of production, refers to a broad system, not private ownership in general. Public ownership is the principle aspect of the economy, you cannot slice out private ownership as a static, disconnected thing and call it capitalism, it must be judged within the context of its existence. It isn’t just that the state owns a significant amount, but that the state owns the commanding heights of industry, the large firms and key industries, finance sector, and more, with the working class in control of said state.
State capitalism refers to capitalist states, run by capitalists with private ownership as the principle aspect, but with large degrees of state control. Nazi Germany is another good example of state capitalism, a strong bourgeois state is not the same as a socialist market economy.
Marx railed against equalitarians. Equality isn’t the goal, but reducing disparity while focusing on improving the lives of the working classes. If that means billionaires existing as a tactical contradiction, then this isn’t a mark against socialism, but instead a contradiction that requires solving down the line. As China remains integrated into the world market, billionaires do exist, but they hold no political power.
Capitalism can and does exist outside of capitalist states (China being an example of this)…this is obviously a matter of differing definitions. That’s OK, but I’d suggest some links to formal definitions. Perhaps there’s a wiki somewhere?
edit: I think nazi germany’s economy fits the term command capitalism better than state capitalism.
You’re fundamentally treating capitalism differently from socialism, which is your error. Socialism isn’t when the government does stuff, just like capitalism isn’t when private property. As for definitions, here’s Prolewiki on State Capitalism and on Socialist Market Economy.
I don’t care much for the opinions of liberals on what they think constitutes socialism or capitalism, which is what you mean by “traditional.” There’s no reason to take liberal words any more seriously than socialists, especially on socialism.
The term “state capitalism” has existed for a long time (originally by one of Karl Marx’s buddies, I think I read), and is used by economists the world over.
Trying to rewrite its definition without acknowledging its well established existing meaning is disingenous and dishonest (on the part of whoever started it or refuses to acknowledge the oversight).
It’s perfectly fine to say “I/we prefer term X because …” though.
The link you provided makes it clear that it ultimately agrees with me, down in the history section:
The term state capitalism was first used in the 1880s, and the concept was described in detail in 1896 by Wilhelm Liebknecht, a close associate of Karl Marx, to differentiate state takeover of private enterprises from the socialist state. Liebknecht described socialism as the removal of capitalism, leading to total state control, which he considered different from state capitalism. State takeovers increased during and in the immediate aftermath of World War I in Europe as private firms failed or were taken over to prevent layoffs. France nationalized its railways, airlines, and several other industries. Italy used a state-owned holding company to control a multitude of nationalized companies. In the United States, state and local governments have owned most major airports since the 1920s, and the country’s postal service is part of the federal government. The interwar period also saw the rise of several totalitarian states, with Nazi Germany exercising high control over investment and production.
It’s clearly talking about capitalist states nationalizing industry, which circles back to the fact that the capitalists control the state and private ownership is the principle aspect of the economy. This is why socialism isn’t simply “when the government does stuff,” and why China is better described as a socialist market economy.
You got me digging… Liebknecht (and others) discussed it at the 1891 SPD Reichsparteitag (available at the internet archive in hard to read German)
Liebknecht warned that state capitalism was the worst form, and not true socialism … ie. don’t equate the expansion of state corporate power with socialism.
His opinion was that even when the state owns or controls industries, the capitalist mode of production (markets, wage labour, accumulation) remains intact rather than being replaced with genuine social ownership. It was apparently a rebuttal to “state socialism as reformist ideology”, asserting that merely placing capital in state hands does not abolish exploitation, and could even be a harsher form of it.
That was at a time when there were no socialist states.
Lenin apparently turned it on its head, declaring that the state can be proletarian and not bourgeois, and that state capitalism under a proletarian state is a step forward, not backwards.
By Liebknechts criteria, china has state capitalism (and not socialism, which he treated as mutually exclusive)
And China would probably fail Lenin’s own conditions for socialist transition, because China presents state capitalism as a stable system and not a transitional one (ie. as a means, not a mode).
China calls itself socialist anyway, but it’s definitely with chinese characteristics like party control and private capital making millionaires. Healthy & peaceful criticism/discussion should be welcomed, along with recognising what they are doing well.
Overall, I think times change and capital ownership is an extremely practical concept that we probably won’t break away from anytime soon. Leibknechts warnings should still be heeded.
You might have to provide your definitions…
Markets are the coordination mechanism, while the ownership structure is clearly capitalist in nature, because a huge amount of capital in China is privately owned. And yes, I am aware many prefer to call their brand of state capitalism “socialist market economy” instead.
That the state owns significant amounts (and the majority in key sectors) is a good thing.
Not a goal? Economic equality does seem to be a goal of China’s socialism… Common prosperity, with a reduction of extreme inequality as one of the key tenets.
I did. The fact that private capital exists in China does not make it capitalist. Capitalism, as a mode of production, refers to a broad system, not private ownership in general. Public ownership is the principle aspect of the economy, you cannot slice out private ownership as a static, disconnected thing and call it capitalism, it must be judged within the context of its existence. It isn’t just that the state owns a significant amount, but that the state owns the commanding heights of industry, the large firms and key industries, finance sector, and more, with the working class in control of said state.
State capitalism refers to capitalist states, run by capitalists with private ownership as the principle aspect, but with large degrees of state control. Nazi Germany is another good example of state capitalism, a strong bourgeois state is not the same as a socialist market economy.
Marx railed against equalitarians. Equality isn’t the goal, but reducing disparity while focusing on improving the lives of the working classes. If that means billionaires existing as a tactical contradiction, then this isn’t a mark against socialism, but instead a contradiction that requires solving down the line. As China remains integrated into the world market, billionaires do exist, but they hold no political power.
Capitalism can and does exist outside of capitalist states (China being an example of this)…this is obviously a matter of differing definitions. That’s OK, but I’d suggest some links to formal definitions. Perhaps there’s a wiki somewhere?
edit: I think nazi germany’s economy fits the term command capitalism better than state capitalism.
You’re fundamentally treating capitalism differently from socialism, which is your error. Socialism isn’t when the government does stuff, just like capitalism isn’t when private property. As for definitions, here’s Prolewiki on State Capitalism and on Socialist Market Economy.
https://www.britannica.com/topic/state-capitalism is the traditional definition, which I think fits pretty well.
I don’t care much for the opinions of liberals on what they think constitutes socialism or capitalism, which is what you mean by “traditional.” There’s no reason to take liberal words any more seriously than socialists, especially on socialism.
Don’t be rude, Cowbee.
The term “state capitalism” has existed for a long time (originally by one of Karl Marx’s buddies, I think I read), and is used by economists the world over.
Trying to rewrite its definition without acknowledging its well established existing meaning is disingenous and dishonest (on the part of whoever started it or refuses to acknowledge the oversight).
It’s perfectly fine to say “I/we prefer term X because …” though.
The link you provided makes it clear that it ultimately agrees with me, down in the history section:
It’s clearly talking about capitalist states nationalizing industry, which circles back to the fact that the capitalists control the state and private ownership is the principle aspect of the economy. This is why socialism isn’t simply “when the government does stuff,” and why China is better described as a socialist market economy.
You got me digging… Liebknecht (and others) discussed it at the 1891 SPD Reichsparteitag (available at the internet archive in hard to read German) Liebknecht warned that state capitalism was the worst form, and not true socialism … ie. don’t equate the expansion of state corporate power with socialism.
His opinion was that even when the state owns or controls industries, the capitalist mode of production (markets, wage labour, accumulation) remains intact rather than being replaced with genuine social ownership. It was apparently a rebuttal to “state socialism as reformist ideology”, asserting that merely placing capital in state hands does not abolish exploitation, and could even be a harsher form of it.
That was at a time when there were no socialist states.
Lenin apparently turned it on its head, declaring that the state can be proletarian and not bourgeois, and that state capitalism under a proletarian state is a step forward, not backwards.
By Liebknechts criteria, china has state capitalism (and not socialism, which he treated as mutually exclusive)
And China would probably fail Lenin’s own conditions for socialist transition, because China presents state capitalism as a stable system and not a transitional one (ie. as a means, not a mode).
China calls itself socialist anyway, but it’s definitely with chinese characteristics like party control and private capital making millionaires. Healthy & peaceful criticism/discussion should be welcomed, along with recognising what they are doing well.
Overall, I think times change and capital ownership is an extremely practical concept that we probably won’t break away from anytime soon. Leibknechts warnings should still be heeded.