State and liberal capitalism.
What is the difference between liberal and state capitalism? When capitalism is not regulated by the state, this can lead to an oversupply and lost demand. We observed unregulated capitalism in the USA in the 1920s. The oversupply caused the crisis we know as the Great Depression. The oversupply, of course, was the result of overcompetition and the eternal struggle for the market. It was then that the idea of the economist John Keynes arose that the state should actively help the economy – give people money, reduce taxes, finance large projects that provide employment. That was, in my opinion, the first idea of state capitalism in the United States. Under liberal capitalism, the working class is the most exploited, and power usually passes to the oligarchs. With such an economic system, we have low wages and pensions. Social benefits are also unworthy.
Russian Federation: from the strict planned economy of the USSR to free oligarchic capitalism.
Russia, unlike China, made a big mistake. First, the idea of transition to capitalism was imposed on the people, which was not a good solution. Secondly, unlike China, which was moving to capitalism under the rule of the CCP, while having a detailed and understandable plan for further development, Russia has moved to state-oligarchic capitalism. Economic power was in the hands of some oligarchs who “legally” plundered the country.
Under Putin, we see a smooth transition from the liberal economy of the 2000s to state capitalism, which is by far the only viable economic system.
Under economic liberalism, there is an oversupply and we see the frenzied exploitation of the workers. Non-intervention in the state’s economy can lead to inflation and a crisis, while the economic elites continue to grow rich.
Under economic socialism, there is a shortage of supply, this caused a shortage of goods in the USSR. It cannot exist for a long time, because such an economic system is difficult to keep on its feet, because it needs centralization and strict control. Thus, the planned economy also leads to a crisis.
It is important to note which superstructure must remain in society. Regardless of the economy, the superstructure must be socialist. An example of this is the same China: the Chinese receive free apartments and more or less decent wages. After all, no matter what the country was, there are always more workers. And their discontent can lead to irreversible consequences.
