Let us … take the most concrete example of state capitalism. Everybody knows this example. It is Germany. Here we have the “last word” in modern large-scale capitalist engineering and planned organization,
Socialism is inconceivable without large-scale capitalist technology based on the latest discoveries of modern science. It is inconceivable without planned state organization, which makes tens of millions of people strictly observe a unified standard in production and distribution of products.22
What is state capitalism under Soviet power? To achieve state capitalism at the present time means putting into practice the accounting and control carried out by the capitalist classes. We have an example of state capitalism in Germany. We know that Germany has proven superior to us. But if you reflect even slightly on what it would mean if the foundations of such state capitalism were established in Russia, Soviet Russia, everyone who has not taken leave of his senses and has not stuffed his head with bits and pieces of book learning would have to say that state capitalism would be our salvation.
The economic program that Lenin favored was thus much more moderate than the one that the Bolsheviks would actually adopt. Had he had his way, the “capitalist” sector would have been left essentially intact and placed under state supervision. The resulting cooperation, which posited the inflow of foreign (mainly German and American) capital, was meant to bring the Bolshevik economy all the benefits of advanced “capitalism” without its political side effects. The proposal had many features in common with the New Economic Policy introduced three years later.
But this was not to be. Lenin and Trotsky ran into fanatical opposition from a number of groups, of which the Left Communists were the most vociferous. Led by Bukharin, and comprising an important segment of the party’s elite, the Left Communists had suffered a humiliating defeat over Brest-Litovsk, but they continued to operate as a faction within the Bolshevik Party and to argue their case in the pages of their organ,