Long before the rise of fascism, competitive capitalism was replaced in each capitalist nation by monopoly capitalism. The markets were controlled by trusts and cartels. The development from laissez faire to monopoly capitalism led to the creation of the world market, the international division of labor, the concentration of capital, and the increase of the productivity of labor. They are all interdependent; one is unthinkable without the others.

Russian state capitalism has become the example for other nations as indicated in the rise of fascism and the growth of governmental control in all countries. However, this trend is no sign of ‘progress,’ as many people believe. It does not correspond to a ‘higher stage’ of capitalism, but indicates the decline of world capitalism. The trend toward bolshevization and fascization is only the political expression of the stagnation and decline of the capitalist system; it is barbarism.

There is no longer any need to point to the many ‘misdeeds’ of Bolshevism in Germany and in the world at large. In theory and in practice the Stalinist regime declares itself a capitalistic, imperialistic power, opposing not only the proletarian revolution, but even the fascist reforms of capitalism. And it actually does favour the maintenance of bourgeois democracy in order to utilise more fully its own fascistic structure. Just as Germany was very little interested in spreading fascism over her borders and the borders of her allies since she had no intention of strengthening her imperialistic competitors, so Russia concerns herself with safeguarding democracy everywhere save within her own territory. Her friendship with bourgeois-democracy is a true friendship; fascism is no article for export, for it ceases to be an advantage as soon as it is generalised. Despite the Stalin-Hitler pact, there are no greater ‘anti-fascists’ than the Bolsheviks on behalf of their own native fascism. Only so far as their imperialistic expansion, if any, will reach, will they be guilty of consciously supporting the general fascistic trend.

To be sure Rühle had no doubt that totalitarianism was worse for the workers than bourgeois democracy. He had fought against Russian totalitarianism since its inception. He was fighting German fascism, but he could not fight in the name of bourgeois democracy because he knew that the peculiar developmental laws of capitalist production would change bourgeois democracy sooner or later into fascism and state-capitalism.

In order that some may lead, others must be powerless. To be the vanguard of the workers, the elite has to usurp all social key positions. Like the bourgeoisie of old, the new leaders had to seize and control all means of production and destruction. To hold their control and keep it effective, the leaders must constantly strengthen themselves by bureaucratic expansion, and continually divide the ruled. Only masters can be leaders. Trotsky was such a master.

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To make clear the fascist character of the Russian system, Rühle turned once more to Lenin’s Left Wing Communism – An Infantile Disorder, for ‘of all programmatic declarations of Bolshevism it was the most revealing of its real character.’ When in 1933 Hitler suppressed all socialist literature in Germany, Rühle related, Lenin’s pamphlet was allowed publication and distribution. In this work Lenin insists that the party must be a sort of war academy of professional revolutionists. Its chief requirements were unconditional leader authority, rigid centralism, iron discipline, conformity, militancy, and the sacrifice of personality for party interests - And Lenin actually developed an elite of intellectuals, a centre which, when thrown into the revolution, was to capture leadership and assume power.

While the capitalist mode of production grew up historically on the basis of individual ownership of the means of production, the Russian revolution has shown that under certain conditions the capitalist mode of production can continue to exist even though the individual proprietors are eliminated and replaced by a collective exploiting apparatus where factories are not owned by capitalist ‘X’ or ‘Y’ but are ‘controlled’ (i. e. owned) by the State (i. e. the controlling classes).

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Today, great men are no longer necessary. Modern propaganda instruments can transform any fraud into a hero, any mediocre personality into an all-comprehending genius. Propaganda actually transforms through its collective efforts any average, if not stupid, leader, like Hitler and Stalin, into a great man. The leaders become symbols of an organized, collective, and really intelligent will to maintain given social institutions. Outside of Russia, Trotsky was soon reduced to the master of a small sect of professional revolutionists and their providers. He was ‘the Old Man,’ the indisputable authority of an artificial growth upon the political scene, destined to end in absurdity.

Coming to power with the help of a russified Marxian ideology, Trotsky, after he lost power, had no choice but to maintain the revolutionary ideology in its original form against the degeneration of Marxism indulged in by the Stalinists.

Not long before his death, Rühle, in summing up his findings with regard to Bolshevism, did not hesitate to place Russia first among the totalitarian stares. ‘It has served as the model for other capitalistic dictatorships. Ideological divergences do not really differentiate socioeconomic systems. The abolition of private property in the means of production (combined with) the control of workers over the products of their labour and the end of the wages system.’

It is now quite clear that only those in the traditional labour movement who opposed its undemocratic organisations and their tactics can properly be called socialists. The labour leaders of yesterday and today did not and do not represent a workers' movement but only a capitalistic movement of workers.

Thus, to mention just a few facts, not the social democracy but Hitler fulfilled the long desire of the socialists, the Anschluss of Austria; not social democracy but fascism established the wished — for state control of industry and banking; not social democracy but Hitler declared the first of May a legal holiday. A careful analysis of what the socialists actually wanted to do and never did, compared with actual policies since 1933, will reveal to any objective observer that Hitler realised no more than the programme of social democracy, but without the socialists.

By fighting as true social-democrats for predominance in the socialist world movement, by identifying the narrow nationalistic interests of state-capitalistic Russia with the interests of the world proletariat, and by attempting to maintain at all cost the power position they had won in 1917, they were merely preparing their own downfall, which was dramatised in numerous factional struggles, reached its climax in the Moscow trials, and ended in the Stalinist Russia of today – one imperialist nation among others.

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Rather, the war, and even the period preceding the war, will be marked by a general and complete military dictatorship in fascist and anti-fascist countries alike. The war will wipe out the last distinction between the democratic and the anti-democratic nations. And workers will serve Hitler as they served the Kaiser; they will serve Roosevelt as they served Wilson; they will die for Stalin as they died for the Tsar.

People love today to speak disdainfully about the liberalistic economy,' [Kautsky] wrote in his last work; 'however, the theories founded by Quesnay, Adam Smith and Ricardo are not at all obsolete. In their essentials Marxhad accepted their theories and developed them further, and he has never denied that the liberal freedom of commodity production constituted the best basis for its development.