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CHAPTER I PARTICULAR FORMS OF SOCIALISM

§ 1 the Nature of Socialism

Socialism essentially means that all means of production are controlled by the community as a whole. Some believe that Socialism can only occur under specific political or cultural conditions, which restricts its definition. Marxian socialists often argue that their version of Socialism is the only true form and dismiss other socialist ideals. This stance has helped them gather support by positioning themselves as distinctly different from other political groups. They claim their Socialism is democratic and aims to abolish the State, though these views have evolved over time. Marxians see themselves as revolutionary, believing they play a crucial role in bringing about Socialism, which they equate with humanity's ultimate purpose. However, this revolutionary claim may not clearly separate their goals from those of other groups.

§ 2 State Socialism

State Socialism is a form of socialism that originated in Germany, particularly in Prussia. In this system, the government plays a major role in the economy. This idea is different from what Marx proposed, as he made a distinction between nationalization (where the government takes control of businesses) and socialization (where the community owns and runs them). Marx believed that simply nationalizing businesses wouldn’t lead to true socialism, and many of his followers were critical of the state due to its past failures.

Marx's followers observed that government-run businesses often did not succeed well. They believed that the state should eventually lose power as society moves towards socialism. However, some Marxist thinkers, such as Kautsky and Engels, stated that not all forms of nationalization equate to real socialism. They argued that genuine socialization requires significant changes in society, especially transferring political power to workers and changing who controls production.

There is a clear difference between the nationalization of specific businesses while still retaining some private ownership, compared to complete socialization, which eliminates private ownership entirely. In a mixed economy, even government-run businesses must operate under market principles, allowing for some level of financial planning that wouldn’t be possible in a fully socialist system.

In the early 20th century in Germany, the term “socialization” started to replace nationalization in discussions. Social democrats suggested various reforms that were essentially about the government taking control of industries but used different terminology. There were plans to socialize certain industries, like coal, but critics pointed out that these proposals often meant just switching from one state employer to another, without achieving true community ownership.

State Socialism accepts a social structure where income and power are assigned based on perceived merit. This is different from many other socialist movements that typically aim for more equality. Supporters of State Socialism, called etatists, often honor traditional classes such as aristocrats, clergy, and military officials, while considering lower classes as less important. However, they try to create a fairer income distribution while still maintaining private ownership in agriculture and small businesses, under strict government supervision.

In a State Socialism framework, even if large enterprises are nationalized, smaller businesses can still be privately owned but are heavily regulated by the government. This means that the state controls what is produced and at what prices, effectively limiting the independence of smaller business owners, who may operate as agents of the government.

The ideal vision of State Socialism attracts many people, including civil servants, landowners, farmers, and workers. This version of socialism often aligns with more conservative beliefs and aims to preserve existing social orders rather than push for major economic changes.

State Socialism tends to be seen as more conservative because it seeks to maintain traditional social hierarchies and avoid radical transformations. Instead of revolutionary change, it focuses on gradual reform, often relying on the existing authorities and law enforcement to maintain order and drive reforms.

In summary, State Socialism advocates for government intervention and regulation in the economy while trying to keep traditional social structures in place. Unlike full communism, which seeks to replace all private ownership, State Socialism allows for some private ownership but under heavy government control. Municipal Socialism focuses on local government ownership of services without altering the overall state-led socialist approach.

§ 3 Military Socialism

Military Socialism is a type of socialism focused on war, where a state's structures are solely oriented towards military goals. In this system, social status and income are largely determined by one's rank in the military, with higher ranks receiving more value and resources from the nation. Private ownership of production means complicates a military state’s goals because having civilian interests can weaken the readiness for war. Historically, as military figures gained land ownership or engaged in economic activities, their martial spirit diminished, as seen in the transition from feudal lords to more economically inclined classes.

In a military state, wealth is often sourced from plunder rather than economic activity, meaning that any wealth obtained must be distributed according to military rank. Without a shared focus on war, a divide between soldiers and civilians could lead to social unrest, often resulting in one group overpowering the other. Therefore, maintaining communistic principles is essential for keeping a military focus.

The dynamics of a military state became evident in World War I, where unequal burdens between soldiers and those at home led to tensions. The shift toward Socialism in military states like Germany was a recognition of the need to equalize conditions. However, these communistic methods often resulted in decreased productivity, weakening the state militarily. If a ruling military class becomes involved in land ownership, they risk losing their warrior identity and, consequently, the essence of their state.

§ 4 Christian Socialism

Christian Socialism is a mix of Christian beliefs with socialist ideas. It argues that a religious state should either focus on self-sufficient families or organize industries socially, instead of letting individuals freely control their economic activities. Supporters believe that without the drive for profit, the economy could run smoothly, viewing modern large-scale industries as disruptive and harmful. They prefer simpler jobs in agriculture and crafts, seeing trade and speculation as unnecessary evils.

The core idea of Christian Socialism is that there should be no entrepreneurs or excess profits, with fair wages and prices for everyone. They think society worked better in the past, particularly in medieval times, when people lived according to divine laws. Although they claim not to support radical socialism, their wish to keep the current property system leads them toward a form of State Socialism, meaning they want more government control over the economy.

Christian Socialists value a fair distribution of income similar to ancient economic ideas. Even though they say they want to keep private property, their approach usually ends with more control by the state, making ownership mostly symbolic. Attempts to create a purely socialist economy struggle because of the nature of economic systems and human behavior. While the Church can help develop the moral qualities needed for a socialist community, real socialism would require changes in human nature that cannot easily be achieved.

§ 5 the Planned Economy

Planned economy is a form of socialism that has had many problems in practice. Past efforts, like Prussian State Socialism, showed that government-owned businesses often did not work well. To improve this, some proposed 'mixed' enterprises, where the government and private business owners share control. Although this was meant to combine government interests with private efficiency, having government officials involved usually limited the ability of entrepreneurs to be innovative, which hurt the success of these mixed businesses.

During World War I, Germany and Austria tried to let business owners manage nationalized companies under government supervision. This included regulating prices and heavily taxing profits, making business owners feel more like employees than true leaders. Even though the wartime system performed poorly, it was seen as the only option for socialism at the time.

The planned economy aims to solve the problem of who is responsible for managing the economy, but its methods often fall short. It tries to reorganize the economy while keeping strict government control, sharing responsibility between government officials and business leaders. However, this approach does not really change the fundamental issues with socialism, which remains the same, even if new names like State Capitalism are used.

§ 6 Guild Socialism

Guild Socialism emerged in England after World War I as a response to the perceived failures of state socialism. It sought to replace capitalism with a socialist system and presented a unique model for how this could be achieved through worker-controlled production. Workers in specific industries would elect their leaders and directly manage their work environments. The Guilds, representing these workers, would interact with the State, which acted as the consumer's organization and had the power to tax and regulate the Guilds.

However, Guild Socialism still placed significant control in the hands of the State, which determined production goals and conditions of labor, often undermining the independence of the Guilds. The State’s involvement meant that society could not simply allow workers to manage their own work without oversight. Efficient production requires coordination, and the State needed to oversee compliance with its objectives to maintain productivity.

While Guild Socialism aimed to adapt socialism to English sensibilities by avoiding terms like “nationalization,” it faced similar challenges as Continental socialism. The appeal of Guild Socialism was partly due to its syndicalistic ideas, which could lead to greater control by worker committees, blurring the lines between socialism and syndicalism. Ultimately, it did not resolve the fundamental issues associated with establishing a socialist society.