State-monopoly capitalism: concept, main theses, methods, goals

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:54

In our article we will try to tell as much as possible about state-monopoly capitalism. This is a type of monopoly capitalism, which is characterized by a combination of two great forces - the entire state and monopolies. But this is in general terms. Over the years, this form of capitalism has changed for many reasons. There was not enough production of workers, raw materials, gold. But we will tell about everything in more detail in our article.

Features of capitalism in the early twentieth century

The First World War is a huge blow to the industry of Europe and the world as a whole. Resources were plundered with great speed, monopoly capital increased. Most of the industries switched to the production of weapons (this particular product was needed). The development of capitalism was also influenced by other factors (alsocaused by wartime).

Production focused on the largest and most technically equipped enterprises. But the organizational structure also had a huge impact. During the war, big capitalists got huge profits. Unfortunately, at the same time, the working masses were impoverished, many small industrialists and entrepreneurs were ruined. To whom is the war, but to someone really dear mother.

But it was thanks to the First World War that an unprecedented intensification and acceleration of the processes of concentration and centralization of capital took place. It was she who allowed to increase the power and number of monopoly organizations. It was during the war that the monopolists took over the state and used it for their own enrichment.

Becoming

State-monopoly capitalism in Russia differs little from its foreign counterparts. But let's first understand what a monopoly is. This, if literally translated, is the exclusive right to sell or produce a product (service). At the beginning of the 20th century, capitalism was strengthened by war.

It was she who made it possible to speed up and intensify the process of transforming monopoly capitalism into state-monopoly capitalism. In one year of the First World War, so many transformations took place, as there were not in a quarter of a century. The whole industry was dominated by state administration. And it happened in most countries - Germany, Britain, USA.

Special attention should be paid to state-monopoly capitalism in the US. This state was dominated until the First World Monopoly. And already during and after the war, they firmly crushed the state apparatus.

Early monopoly

The apparatus of state administration was subordinated in the capitalist countries through the formation of military-economic bodies. They were managed by representatives of monopoly organizations. And thanks to state regulation, there was a dispersal of the working masses, raw materials, and fuel. Moreover, all this happened solely in the interests of monopoly enterprises.

These enterprises were financed and subsidized by the state and various mixed organizations. The monopolies made extensive use of the state apparatus of oppression and propaganda. It was only thanks to these structures that it was possible to achieve cosmic profits, and most importantly, to increase the exploitation of the working population.

Early stages of development

When forming state-monopoly capitalism, one main goal was set - to strengthen capitalism, to provide large industrialists with profit through the oppression and exploitation of the working population. It is possible to single out forms of monopoly capitalism that are characteristic of the early stages of development:

• cartels;
• trusts;
• syndicates.

Modern forms are very different from the early ones:

• conglomerates;
• multinational companies;
• concerns.

These forms are typical for countries such as Germany, Great Britain, France.

A little about Germany

If you look at the era of state-monopoly capitalism, you can see that Germany during this period was very far from the world market. And waged war only at the expense of resources located within the state. It is for this reason that Germany was the first to get in the way of state intervention and monopolies in the country's economy. During this period, maximum centralization and bureaucracy can be observed.

Intervention in the country's economy was due to the fact that the state was completely separated from the world market. And the needs that arose due to martial law only increased. The needs of the armed forces were enormous, they could only be satisfied if the consumption of the working population of the country was sharply reduced. The consumption of raw materials and food reserves must be reduced to a minimum. Only then would the country be able to wage war.

German economic development

But it should be noted that some industries were superficially influenced by state-monopoly capitalism. So, such spheres as financial, transport, raw material supply, foreign trade, labor force, food supply of the population fell under the control of the monopolies.

The focus of the monopolies was the distributionraw materials and foodstuffs. Reasons why the economy began to develop faster:

1. A single internal market has been formed.
2. Two regions joined - Lorraine and Alsace.
3. France gave out considerable indemnities (more precisely, 5 billion francs).
4. Modesty, sense of duty, respect for work, moderation - these are the main features of the "Prussian style". It was they who characterized German society and the state.
5. The positive experience of advanced countries was used.
6. Militarization (preparation for war).

Military orders were quite expensive. All raw materials and scarce materials were distributed among several bourgeois groups.

UK

The state apparatus of England began to interfere in the economy much later than in Germany. At the very beginning of the First World War, the majority of the government was a supporter of state non-intervention in the economy. But the difficulties that arose regarding the import and export of goods, along with a decrease in fuel production and a significant increase in the needs of the troops, forced the government to influence foreign trade, production, circulation of goods and their consumption.

In short, state-monopoly capitalism in England was very different from that which prevailed in Germany. Military economic control had a different form of connection between the state and industry. There were no complex institutions of state representatives in industrial bodies. This is the main difference from the German device. Observation althe committees were bodies from the bourgeoisie, they supported the ties between industry and state structures.

Tasks of the "regulator" of the military industry

The "Regulator" of the military industry since 1915 was the Ministry of Army Supply. His tasks included:

1. Keep in contact with industrialists.
2. Separation of military orders.
3. Control over the execution of military orders.

The Minister of Army Supply (according to the law issued on January 27, 1916) had the right to personally declare under the control of the government absolutely any enterprise involved in supplying the military.

And these are such enterprises:

1. Engaged in the repair (construction) of buildings for the military or naval departments.
2. Factory equipment enterprises.
3. Enterprises engaged in the repair and equipping of ports, docks.
4. Power plants.
5. Factory manufacturing fire fighting equipment.

France

Signs of state-monopoly capitalism could be observed in France. That's just the development happened spontaneously, there was no pre-thought-out program for holding events in France. This is the main difference from such states as Germany and Great Britain. It cannot be said that the state got into economic life as hard as it was in Germany. But still regulation was applied because of the shortcomings of food, metals, fuel andworkforce.

Organizations took under regulation factories working for the defense industry, as well as enterprises that procure raw materials. In France, all imports of scarce goods were completely monopolized. But let's talk about the pros and cons of state-monopoly capitalism. Among the arguments "for" one can single out that in some industries the monopoly turns out to be more effective, there are more incentives and funds for the development of the industry.

But there are also disadvantages - society's resources are irrationally distributed, income inequality among the population is very noticeably increasing. In addition, the possibility of slowing down and stagnation of scientific and technological progress is increasing. Increased control over the economy caused the growth of the state apparatus. Officials both in France and in Germany, Great Britain, have become many times more.

Monopolies in Russia

And now it's time to talk in more detail about Russia. Yes, during the First World War, state-monopoly capitalism began to develop in our country. Lenin interrupted this development with an unprecedented revolution. If all over the world the working class was oppressed and enslaved, then in Russia it was able to conquer the entire state apparatus.

In the pre-war period, imperialism in Russia was not very strong, unlike the dominant one in England or Germany. But the preconditions for monopoly capitalism to state-monopoly were obvious. Concentration of production capacitiesalong with the centralization of capital, as well as the formation of industrial and banking monopolies, caused the state apparatus to become subordinate to monopolies.

Transition to state monopolies

For the transition to the European type, Russia lacked the prerequisites for a political orientation. At that time, there was an autocracy that did not transform into a bourgeois-type monarchy (as was the case in England or Germany). Therefore, state-monopoly capitalism in Russia was very different from Western European capitalism.

The landlords were of great importance for the economy, as they held all power in their hands. The bourgeoisie had much less influence, in fact, was removed from power. Lenin argued that tsarist Russia was dominated by military and feudal imperialism. He also drew attention to the fact that the monopoly of autocracy and military force partially replenishes (and sometimes replaces) the monopoly of finance capital.

The First World War allowed Russia to create an environment that turned out to be favorable for the rise of large capitals. But due to the fact that the bourgeois elements were weak, capitalism could not reach the stage it reached in Europe.

The government under the tsar led the fight against devastation, tried to provide for all the needs of the troops, regulating the country's economy in a bureaucratic way. This gradually (but inevitably) brought the state and the monopolists closer together.

But the problem is that all the activities werespontaneous (as in France). They were scattered and chaotic in nature, so they could not improve the economic life of the country. Moreover, economic devastation only increased in scale.

The Great October Revolution

It is worth noting that state-monopoly capitalism in our time is developed quite strongly. But still not the same as in Europe or the USA. And the reason for this is the coming to power of the working people. Until 1915, in Russia, the government had very little influence on the country's economy. The rather unsuccessful attempts to estimate the cost of food and conduct public procurement of certain groups of products can be called an exception. As a result, by the end of 1917, the general state of the national economy could be called deplorable.

B. I. Lenin was able to reveal the causes of economic ruin and show the way out of the crisis. It was this man who in his writings described the path that must be followed in order to prevent the death of the Empire. And the path was simple - workers and peasants win power and together move towards socialism. And what came of it - only the lazy do not know. The indestructible union collapsed, Russia turned towards capitalism. And who knows if this direction will not turn out to be wrong in 70 years?

In the autumn of 1917, the working class of Russia won power in the country. The leader of the uprising was the Bolshevik Party, it was in her hands that power passed. It is from the October Revolution that one can begin the countdown of a new time - the era of the development of socialism. Russia lost the First World Warmillions of lives and destinies were broken. But the war would still go on, blood would flow. It was the revolution that made it possible to stop the first imperialist war.