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p As the general crisis of capitalism deepens its ideologists and politicians make every effort to embellish capitalist society, camouflage its misanthropic nature and present the processes in it in a false light. They seek to prove that the nature of capitalism has changed, that it is synthesising with socialism into a single “industrial society" with a high level of consumption. To back up this theory they allege that, like socialism, contemporary capitalist society has become completely governable and that the aim of 81 capitalist production is to ensure the masses the highest possible level of consumption.

p Capitalism is governed by the capitalist market, by capitalist competition. Once this was the only regulator of capitalist economy. However, the growth of pre-monopoly into monopoly capitalism, and the outbreak of the general crisis made this regulator inadequate for the functioning, let alone the further development of capitalism. The monopolies were forced to invest the bourgeois state with the function of direct intervention in the process of capitalist reproduction, in the process of social life. This is one of the cardinal reasons, dictated by economic pressure, for the rise of state-monopoly capitalism, in which the economic might of the monopolies has merged with the political power of the state. This, it goes without saying, is not the only reason, in the same way as interference in production is not the only aim behind the linking up of the power of the monopolies with that of the stale. The purpose behind this process is to enrich the monopolies, crush the working-class movement and the national liberation struggle, save the capitalist system and unleash wars of aggrandisement. However, these aims cannot be realised without preserving what is basic in capitalism—its economy, founded on private ownership.

p The bourgeois state accomplishes its regulating ( programming) role chiefly in the sphere of state ownership, “state economy”, emanating from capitalist nationalisation and representing nothing more than collective ownership by the monopolies. The state directly manages the enterprises and entire industries, transport, banks, insurance agencies and other establishments belonging to it.

p However, the programming role of the bourgeois state is not confined to its property and manifests itself in one way or another in the entire economy and social life of capitalism. One of its primary concerns is at least partially to remove indications of the general crisis of capitalism, particularly the crises of overproduction. To counter crises the bourgeois state places ever larger orders, especially orders of a military nature, with the monopolies; artificially holds up the production of consumer goods and thereby reduces the supply; extends economic aid to the 82 monopolies, granting, in particular, non-repayable subsidies to monopolies finding themselves in financial difficulties; creates extra-norm state reserves by purchasing surplus goods from the monopolies, arid so forth. The brunt of this burden is borne by the working masses, through taxes from which, in the main, is formed the state budget used to finance anti-crisis measures. At the same time, the monopolies are ensured with fabulous profits.

p Under capitalism, state-monopoly regulation of the economy is no longer reduced to anti-crisis measures. It is also exercised at the ascendant stage of the economic cycle with the purpose of securing economic development for a more or less long period.

p The state co-ordinates the government and private investment programmes, distributes orders and critical raw materials, regulates prices (in favour of the monopolies), redistributes the national income (also in favour of the monopolies) through its tax policy, and allocates credits and subsidies for the modernisation of plant. More and more frequently, the bourgeois state plays the role of founder of new branches of production and technology, undertakes the risk of investing capital in branches which at the early stages of development hold out no promise of a profit large enough to satisfy the monopolies, and controls military production and basic scientific research.

p It would be wrong, however, to regard state-monopoly programming as something artificial, as a result of the subjective desire of the monopolists. It is dictated by the course of events, by the requirements of modern production, technology and science. The contemporary scientific and technical revolution demands a greater concentration of production, greater integration of material, financial and manpower resources, and a larger scale of research and experimentation, which the monopolies frequently cannot achieve without support and aid from the state. An extremely important factor stimulating state-monopoly regulation is the economic challenge from the socialist system. In order to meet this challenge the bourgeois state seeks to activise production and increase its rate of development.

p Yet, no matter how great the role state regulation plays under capitalism, it has nothing in common with scientific 83 regulation of the economy as a whole, with planning, which is incompatible with private capitalist ownership. It neither changes the essence of imperialism nor removes exploitation, chaotic market conditions, competition and anarchy of production.

p An eloquent indication of this arc the post-war crises of overproduction in the U.S.A., the currency crises in Britain, the inflation in a number of capitalist countries, the unfavourable trade and payments balances, the stockmarket crashes, the numerous bankruptcies, the flow of gold from the U.S.A., and so on. Regulation has proved to be unable to eradicate the chronic idleness of part of the production capacities and unemployment or to secure stable rates of production growth.

p State-monopoly capitalism supplements economic regulation with social regulation. In itself, economic regulation implies social regulation, inasmuch as its purpose is not only to ensure the monopolies with enormous profits but also to safeguard capitalism against political and social shocks, in which a far from unimportant role is played by economic crises, unemployment and other ulcers of capitalist economy. The bourgeois state attaches special significance to the regulation of relations between labour and capital, naturally, in favour of the capitalists. Here the bourgeois state seeks to reconcile something that is irreconcilable within the framework of capitalism, namely, labour and capital, and thereby preserve the capitalist system of exploitation. Now and then it is compelled somewhat to curb the excessive claims of the monopolists, forcing them to make some concession to the workers and thereby either ease or extinguish the conflicts between labour and capital. It frequently manoeuvres and resorts to social demagogy, but this does not prevent it from fleecing the working class economically and non-economically, by sheer force.

p Of course, state-monopoly capitalism complicates and impedes the revolutionary struggle of the working class, for now it has to deal with the combined power of the monopolies and the state. Yet one cannot fail to appreciate that nationalisation, the setting up of a state sector in capitalist economy, and economic and other programming reflecting the long-term interests of the monopolies, and 84 their economic and political strategy convincingly reveal the economic and political bankruptcy of capitalism. Socialism is insistently knocking on the door of the capitalist world; the course of events and the development of modern economy are forcing the bourgeoisie to beat a retreat from the “sacred” right to private ownership, to set up a programmable state economy. Although this remains a capitalist economy, the very fact of its emergence indicates that capitalists are not needed as organisers of production, that they are parasites on the body of society. Moreover, “state economy" prepares the material soil for socialism inasmuch as it can be turned into socialist property most easily and painlessly, as a result of a socialist revolution. For that reason, while opposing the monopolies, the working class champions the nationalisation programme on a democratic foundation, seeks to secure economic regulation in the interests of the people and claims the right to direct the economic and social life of society.

Economic and social regulation does not solve the contradictions of contemporary capitalism, particularly the contradiction between labour and capital. On the contrary, these contradictions grow ever more acute.