Unlike Groucho I am mainly interested in the abstract academic economic discussion. However, I cannot claim to be the most learned of people, and so here is my simplistic rendition of an explanation of why I believe the Soviet bloc China and Cuba etc, and the Western bloc, were fundamentally opposites side of the same coin. Yes there were degrees of difference, but these were not different modes of production, deformed or otherwise, they merely represented to extremes of the same system, capitalism.
I have to say that I absolutely agree with neprimerimye. The quote from Marx is absolutely crucial;
neprimerimye said:
Curious that you argue that you regard profits as the central essence of capitalism. Marx was of the opinion that the essence of bourgeois society was the accumulation of capital by means of exploiting the proletariat. "Accumulate, accumulate that is their Moses and their prophets".
this was a phrase I was thinking of when I asked a question about surplus value. I think if somebody asked me to define capitalism in a sentence, I don't think you can pick a better sentence than this.
Somebody was saying above how primitive accumulation in feudal society was limited to what the king/rulers could consume. The king/rulers may have an awful big capacity to consume, but nevertheless production was really production for consumption. What distinguished capitalism from feudalism is that the accumulation takes place to fund accumulation.. "Accumulate, accumulate that is their Moses and their prophets".
Now as neprimerimye says, what distinguishes Russia in the early part of the revolution from Russia in 1928 onwards is not who controls the surplus value, but what the surplus value was used for. (I wasn't trying to suggest that surplus value will not be produced in a workers society. It is highly possible that surplus value will be created in a communist society, because it is communally controlled this is rechristened "social surplus".) All the Russian leaders from Stalin and his 10 years plans through to Khrushchev in his famous speech and the others all make it absolutely clear what they are doing, accumulating accumulating in order to compete with the West.
None of this means that Russian capitalism and American capitalism had to be exactly the same. It is true that apparently in Russia the price mechanism in work. You can print to all kinds of industries where production wasn't for profit, it often ran at any economic loss, production was for "need", but the need to? The need of the Russian ruling class to compete with the west, not the need of workers.
In a communist society there could possibly be surplus value. If en masse people decided to live and more frugal lifestyle, less materialistic and consumptive, then the potential for producing surplus value/social value would be massively higher. But because in that society we would not be competing with anybody (militarily AND SO economically, more of that later) we could simply reduce the amount of surplus value produced by working less hours. I can see no reason why not, people could be working just a couple of hours a day in communist society (if that's what they choose). This is what distinguishes a workers society from what existed in Russia.
The price mechanism and military competition.
It is not true that the obvious price mechanism is omnipresent in western capitalist society. Yes health workers produce surplus value by producing healthy workers, but they only do so after being funded from taxes on the surplus value created by commodity value creating workers. Not only that, many private companies who can run one section at a loss. I suppose most people will have heard of the "loss leader", the commodities sold at a loss in order to break into markets. What is important is not that one section is making a loss, what is important is the overall production of surplus value within the private enterprise. The same is true for the Russian empire.
Secondly, isolation does not make any economy a workers state. But even if it did, Russia was not isolated from economic competition. What becomes quite easily recognisable when you study world-class war two that modern war is not a military competition so much as a economic competition. It is that the economy which is most able to satisfy the voracious needs of the one machine which wins the war, not the one with the most wizardry in military strategy. And THAT's what tied/integrated Russia into the global economy was its military competition. I hate to quote Reagan as any sort of an economist, but they were quite right that what broke the Russian economy was its military/economic competition with America.
And so in my opinion, it is this production of surplus value for accumulation and competition, rather than the accumulation of social service for human need as in a workers state, that makes Russia a capitalist state.