Red Reviews: “Economic Problems of Socialism in the USSR”

In 1951 the principal leader of the Soviet Union, Joseph Stalin, published Economic Problems of Socialism in the USSR. While it is a rather small book, its importance in the Marxist-Leninist understanding of socialism is quite large, and it deserves to be studied carefully. The book itself is a product of the discussions and debates in preparation of the excellent textbook, Political Economy, published by the Economics Institute of the Academy of Sciences of the U.S.S.R. Preparation of this textbook under Stalin’s guidance began as early as the late 1930s and was nearing completion in 1941 before it was delayed by the outbreak of World War II. As a result, it wasn’t finally published until 1954, shortly after Stalin’s death. 

Stalin’s Economic Problems of Socialism in the USSR came out of this process, specifically from a 1951 conference concerning the Political Economy textbook. The Foreword to the First Edition of the Political Economy textbook makes note of this conference. It says, “Of very great importance for the work on this textbook was the economic discussion organized in November 1951 by the Central Committee of the Communist Party of the Soviet Union. In the course of this discussion, in which hundreds of Soviet economists took an active part, the draft for a textbook of political economy submitted by the authors was subjected to a thorough critical examination.”

Stalin’s Economic Problems of Socialism in the USSR is a summation of his views from this conference. It was printed in the party journal, Bolshevik, just prior to the 19th Congress of the Communist Party of the Soviet Union. It presented Stalin’s thoughts on the issues raised by the conference and answered questions. It deals with a number of important questions or problems dealing with the laws governing political economy, particularly as it relates to socialist construction in light of the experiences of the Soviet Union up to that point. 

Stalin’s arguments

From the very beginning, Stalin drives home that when we are talking about socialist construction, we are talking about a law-governed process. He writes, “Marxism regards laws of science – whether they be laws of natural science or laws of political economy – as the reflection of objective processes which take place independently of the will of man. Man may discover these laws, get to know them, study them, reckon with them in his activities and utilize them in the interests of society, but he cannot change or abolish them.” In other words, we can’t just do whatever we want. We are bound by the laws of social and historical development. It is important to keep this point in mind.

Stalin addresses several dogmatic misconceptions regarding socialism. First, he discusses the question of commodity production under socialism. Stalin writes, 

“Certain comrades affirm that the Party acted wrongly in preserving commodity production after it had assumed power and nationalized the means of production in our country. They consider that the Party should have banished commodity production there and then. In this connection they cite Engels, who says: ‘With the seizing of the means of production by society, production of commodities is done away with, and, simultaneously, the mastery of the product over the producer.’ These comrades are profoundly mistaken.”

Stalin is addressing a common dogmatic mistake. He points out that “Engels has in mind countries where capitalism and the concentration of production have advanced far enough both in industry and in agriculture to permit the expropriation of all the means of production in the country and their conversion into public property.” Stalin notes that the Bolshevik Revolution took place under different conditions and thus has to face the question differently. “And so, what is to be done if not all, but only part of the means of production have been socialized, yet the conditions are favourable for the assumption of power by the proletariat – should the proletariat assume power and should commodity production be abolished immediately thereafter?” These are the different conditions in which the USSR found itself. 

Stalin makes a very important point regarding commodity production under socialism: 

“It is said that commodity production must lead, is bound to lead, to capitalism all the same, under all conditions. That is not true. Not always and not under all conditions! Commodity production must not be identified with capitalist production. They are two different things. Capitalist production is the highest form of commodity production. Commodity production leads to capitalism only if there is private owner-ship of the means of production, if labour power appears in the market as a commodity which can be bought by the capitalist and exploited in the process of production, and if, consequently, the system of exploitation of wage workers by capitalists exists in the country. Capitalist production begins when the means of production are concentrated in private hands, and when the workers are bereft of means of production and are compelled to sell their labor power as a commodity. Without this there is no such thing as capitalist production.”

Stalin notes that there are two different production sectors in the USSR, “state, or publicly-owned production, and collective-farm production, which cannot be said to be publicly owned.” He notes that the collective farms are not ready to move beyond commodity relations. “At present the collective farms will not recognize any other economic relation with the town except the commodity relation – exchange through purchase and sale,” Stalin writes. “Because of this, commodity production and trade are as much a necessity with us today as they were, say, thirty years ago, when Lenin spoke of the necessity of developing trade to the utmost.” Thus Stalin explains that this is a “special kind of commodity production” which is a “commodity production without capitalists … concerned mainly with the goods of associated socialist producers.” 

Stalin further points out that some other conceptions, drawn from the Marxist analysis of capitalism, also cannot be artificially applied to the conditions of socialism. “Talk of labor power being a commodity, and of ‘hiring’ of workers sounds rather absurd now, under our system: as though the working class, which possesses means of production, hires itself and sells its labor power to itself,” Stalin explains. He goes on to say, “It is just as strange to speak now of ‘necessary’ and ‘surplus’ labor: as though, under our conditions, the labor contributed by the workers to society for the extension of production, the promotion of education and public health, the organization of defence, etc., is not just as necessary to the working class, now in power, as the labor expended to supply the personal needs of the worker and his family.” 

Related to this is the question of the Law of Value, and whether it continues to exist under socialism. The Marxist conception of the Law of Value under capitalism can be summed up like this: The value of any commodity is equal to the socially necessary labor time required to produce that commodity. In capitalist society the Law of Value causes the price of commodities to gravitate towards their value. In this way it regulates the distribution of labor-power and the means of production within the society and motivates technical progress. Stalin notes, “Value, like the law of value, is a historical category connected with the existence of commodity production.” Nevertheless, “the law of value can be a regulator of production only under capitalism, with private ownership of the means of production, and competition, anarchy of production, and crises of overproduction.” The function of the law of value under socialism is thus restricted primarily to the circulation and exchange of commodities, namely consumer goods. 

Stalin also discusses the necessity of abolishing the contradictions between town and country, and between mental and manual labor. This means, primarily, further developing the productive forces, raising agriculture to the level of industry, and raising manual labor to the level of technical work through cultural and scientific education. These are essential tasks of the period of socialist construction. 

Stalin goes on to further address questions regarding the world market and the deepening crisis of capitalism, and the continuing inevitability of inter-imperialist wars after the peace of the second World War. 

Stalin also goes on to explain the difference between the basic laws of capitalism and socialism. He says the basic law of capitalism can be put like this: “the securing of the maximum capitalist profit through the exploitation, ruin and impoverishment of the majority of the population of the given country, through the enslavement and systematic robbery of the peoples of other countries, especially backward countries, and, lastly, through wars and militarization of the national economy, which are utilized for the obtaining of the highest profits.” In contrast, Stalin says that the basic law of socialism is “the securing of the maximum satisfaction of the constantly rising material and cultural requirements of the whole of society through the continuous expansion and perfection of socialist production on the basis of higher techniques.”

The rest of the book goes into more particular aspects of the discussion around the Soviet Political Economy textbook. This is also worth careful attention, especially where Stalin answers particular questions and misconceptions, but unfortunately it’s beyond our scope to get into all of that in this short review. 

Relevance of Economic Problems of Socialism in the USSR for today

Stalin’s book sums up the lessons of socialist construction in the world’s first socialist state up to that point based on the principles of Marxist-Leninist science. For that reason alone, it is invaluable. Marx and Engels, the founders of modern scientific socialism, were rightfully hesitant to try to predict what socialist society would look like, though they were able to draw upon the experience of the Paris Commune of 1871, and from the basic laws of historical materialism, some fundamental points that have held true. This is most apparent in Marx’s Critique of the Gotha Program. But until the Bolshevik Revolution in 1917, it wasn’t possible to concretely sum up the sustained experience of socialism in practice. Stalin’s book does just that, drawing on 34 years of socialist construction.

These lessons are important for Marxists to grasp. It is essential for those who aspire to a socialist future to understand what socialism is, and Stalin’s work lays the foundation for just such an understanding. From here, we can also look at the experiences of socialism in practice over the past 74 years since Stalin’s book was written and draw further lessons. Notably, many countries have built socialism in conditions different from those of the Soviet Union, and we can draw positive and negative lessons from their experiences. For example, we see that after the rise of Khrushchev, revisionism took hold in the USSR. The revolutionary principles of Marxism-Leninism were “revised” to accommodate a lengthy process of “economic reforms” that accelerated ideological degeneration and finally to capitalist restoration in 1991. The people’s democracies of Eastern Europe fell earlier, in 1989. But some socialist countries were able to survive and thrive. Today, the People’s Republic of China, Vietnam, Laos, Cuba and Democratic Korea still follow the socialist road, and have built socialism based on their own particular conditions. We have a lot to learn from studying their experiences as well. 

China in particular stands out. Looking at People’s China today is like looking into the future. By creatively applying Marxist-Leninist principles to Chinese conditions, the Communist Party of China has modernized their country, wiped out extreme poverty, and set out well on the way towards building prosperous and harmonious socialist society.

As General Secretary Xi Jinping said at the 20th Congress of the Communist Party of China, “To uphold and develop Marxism, we must integrate it with China’s specific realities. Taking Marxism as our guide means applying its worldview and methodology to solving problems in China.” Xi also says in this same report that “We have identified the principal contradiction facing Chinese society as that between unbalanced and inadequate development and the people’s ever-growing needs for a better life, and we have made it clear that closing this gap should be the focus of all our initiatives.” This is perfectly in line with Stalin’s basic law of socialism discussed above, applied to the contemporary Chinese situation. 

The United States is an advanced imperialist country, the most powerful monopoly capitalist power in world history. While the U.S. is, of course, very different from Tsarist Russia or pre-revolutionary China, with its own history and problems, it too is governed by the laws of capitalist development, and likewise, the process of building socialism in this country will also proceed according to objective laws. Understanding the experiences of the socialist countries helps us to understand those laws and learn from those rich experiences. 

Revolutionaries today would do well to study Stalin’s Economic Problems of Socialism in the USSR as well as the 1954 Political Economy textbook to which it contributed.

#RevolutionaryTheory #RedReviews #MarxismLeninism #Stalin

Source: https://fightbacknews.org/red-reviews-economic-problems-of-socialism-in-the-ussr?pk_campaign=rss-feed