“The system of production developed in Russia is State socialism. It is organized production, with the State as universal employer, master of the entire production apparatus. The workers are master of the means of production no more than under Western capitalism. They receive their wages and are exploited by the State as the only mammoth capitalist. So the name State capitalism can be applied with precisely the same meaning. The entirety of the ruling and leading bureaucracy of officials is the actual owner of the factories, the possessing class.”

— Antonie Pannekoek

Workers Councils (1947), Section 2.5

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Antonie Pannekoek 17

Dutch astronomer and Marxist theorist 1873–1960

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“The Russian economic system is state capitalism, there called state-socialism or even communism, with production directed by a state bureaucracy under the leadership of the Communist Party. The state officials, forming the new ruling class, have the disposal over the product, hence over the surplus-value, whereas the workers receive wages only, thus forming an exploited class.”

Antonie Pannekoek (1873–1960) Dutch astronomer and Marxist theorist

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“Let me examine the alleged "distinction from capitalism" characteristic of the Soviet Union and see whether it isn't a distinction from a certain stage of capitalism rather than from capitalism as a whole. The determining factor in analyzing the class nature of a society is not whether the means of production are the private property of the capitalist class or are state-owned, but whether the means of production … are monopolized and alienated from the direct producers. The Soviet Government occupies in relation to the whole economic system the position which a capitalist occupies in relation to a single enterprise. … "Bureaucratic state socialism" is an irrational expression behind which there exists the real economic relation of state-capitalist-exploiter to the propertyless exploited.”

Raya Dunayevskaya (1910–1987) American philosopher

"The Union of Soviet Socialist Republics is a Capitalist Society" (1941), in Russia: From Proletarian Revolution to State-Capitalist Counter-Revolution (2017), p. 210

“What economists call over-production is but a production that is above the purchasing power of the worker, who is reduced to poverty by Capital and State.”

Peter Kropotkin (1842–1921) Russian zoologist, evolutionary theorist, philosopher, scientist, revolutionary, economist, activist, geogr…

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Context: What economists call over-production is but a production that is above the purchasing power of the worker, who is reduced to poverty by Capital and State. Now, this sort of over-production remains fatally characteristic of the present capitalist production, because — Proudhon has already shown it — workers cannot buy with their salaries what they have produced and at the same time copiously nourish the swarm of idlers who live upon their work.
The very essence of the present economic system is, that the worker can never enjoy the well-being he has produced, and that the number of those who live at his expense will always augment. The more a country is advanced in industry, the more this number grows. Inevitably, industry is directed, and will have to be directed, not towards what is needed to satisfy the needs of all, but towards that which, at a given moment, brings in the greatest temporary profit to a few. Of necessity, the abundance of some will be based on the poverty of others, and the straitened circumstances of the greater number will have to be maintained at all costs, that there may be hands to sell themselves for a part only of that which they are capable of producing; without which, private accumulation of capital is impossible!
These characteristics of our economical system are its very essence. Without them, it cannot exist; for, who would sell his labor power for less than it is capable of bringing in, if he were not forced thereto by the threat of hunger?
And those essential traits of the system are also its most crushing condemnation.

“An increase in the productivity of labour means nothing more than that the same capital creates the same value with less labour, or that less labour creates the same product with more capital.”

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Grundrisse (1857-1858)
Source: Notebook IV, The Chapter on Capital, p. 308.

“By bourgeoisie is meant the class of modern capitalists, owners of the means of social production and employers of wage labor. By proletariat, the class of modern wage laborers who, having no means of production of their own, are reduced to selling their labor power in order to live.”

Friedrich Engels book The Communist Manifesto

The Communist Manifesto, footnote (1888 edition)

“The first act by virtue of which the State really constitutes itself the representative of the whole of society—the taking possession of the means of production in the name of society—this is, at the same time, its last independent act as a State. State interference in social relations becomes, in one domain after another, superfluous, and then dies out of itself; the government of persons is replaced by the administration of things, and by the conduct of processes of production. The State is not “abolished.””

Friedrich Engels (1820–1895) German social scientist, author, political theorist, and philosopher

It dies out.
Socialism, Utopian and Scientific (1901)

“Now, state socialism, by objecting to one form of ownership, mainly the right of individual ownership over the means of production, in effect, placed the lives and liberty of all its citizens in the hands of a government clique and does this very simply because no liberty could be achieved in society. If the state apparatus alone has control over means of production like printing presses and the broadcast medium of the airwaves, this control of the means of production is a control over the ends that people in society can seek.”

Roy A. Childs, Jr. (1949–1992) American libertarian essayist and critic

Roy A. Childs, Jr. “Property Rights/Civil Liberties: Two Sides of One Coin,” lecture presented at Stanford University for Cato Institute’s Summer Seminars on Political Economy (August 6, 1978). Reprinted in Liberty Against Power, San Francisco: CA, Fox & Wilkes (1994) p. 210

“If "socialism" is defined as "ownership of the means of production"--and this is both the orthodox and the only rigorous definition--then the United States is the first truly Socialist country.”

Peter F. Drucker (1909–2005) American business consultant

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“By stating that the analysis of the laws of motion governing the capitalist mode of production necessarily includes at least some essential elements of an analysis of economic phenomena valid for the whole historical epoch encompassing economic organizations in which commodity production exists, one extends the validity of parts of Marx’s Capital not only into the past but also into the future.”

Ernest Mandel (1923–1995) Belgian economist and Marxist philosopher

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“Once the means of production have become capital, a certain quantity of value is augmented through the exploitation of labor. And this valorizing value is capital.”

Itsurō Sakisaka (1897–1985) Japanese economist

Exploitation of Labor (1967)

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Antonie Pannekoek 17

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