A lot of people get hung up on the term “state capitalism” when discussing transitional phases. The key point they miss is that while the form might resemble capitalism (wage labor, state as the employer), the content and purpose are fundamentally different.
Under bourgeois capitalism, the entire purpose is the private accumulation of capital. Social good is an incidental byproduct, at best. In a socialist transition, the state uses these same economic forms as a tool for social development by building infrastructure, providing healthcare, ensuring food security, and directing the entire economic surplus back into society. It’s the difference between a machine designed to enrich a class of owners, and one designed to uplift the entire working class.
A lot of people get hung up on the term “state capitalism” when discussing transitional phases. The key point they miss is that while the form might resemble capitalism (wage labor, state as the employer), the content and purpose are fundamentally different.
Under bourgeois capitalism, the entire purpose is the private accumulation of capital. Social good is an incidental byproduct, at best. In a socialist transition, the state uses these same economic forms as a tool for social development by building infrastructure, providing healthcare, ensuring food security, and directing the entire economic surplus back into society. It’s the difference between a machine designed to enrich a class of owners, and one designed to uplift the entire working class.