The capitalist is not driven by the desire to provide his fellow-men with the necessities of life; he is driven by the necessity of making money. - Anton Pannekoek

The system of production developed in Russia is State socialism. It is organized production, with the State as universal employer, master of the entire production apparatus. The workers are master of the means of production no more than under Western capitalism. They receive their wages and are exploited by the State as the only mammoth capitalist. So the name State capitalism can be applied with precisely the same meaning. The entirety of the ruling and leading bureaucracy of officials is the actual owner of the factories, the possessing class.

So the light darkened that had illuminated the world; the masses that had hailed it were left in blacker night, either in discouragement turning away from the fight, or struggling along to find new and better ways. The Russian revolution first had given a mighty impulse to the fight of the working class, by its mass direct actions and by its new council forms of organization—this was expressed in the widespread rise of the communist movement all over the world. But when then the revolution settled into a new order, a new class rule, a new form of government, State capitalism under dictatorship of a new exploiting class, the Communist Party needs must assume an ambiguous character. Thus in the course of ensuing events it became most ruinous to the working class fight, that can only live and grow in the purity of clear thought, plain deeds and fair dealings. By its idle talk of world revolution it hampered the badly needed new orientation of means and aims. By fostering and teaching under the name of discipline the vice of submissiveness, the chief vice the workers must shake off, by suppressing each trace of independent critical thought, it prevented the growth of any real power of the working class. By usurping the name communism for its system of workers' exploitation and its policy of often cruel persecution of adversaries, it made this name, till then expression of lofty ideals, a byword, an object of aversion and hatred even among workers. In Germany, where the political and economic crises had brought the class antagonisms to the highest pitch, it reduced the hard class fight to a puerile skirmish of armed youths against similar nationalist bands. And when then the tide of nationalism ran high and proved strongest, large parts of them, only educated to beat down their leaders' adversaries, simply changed colours. Thus the Communist Party by its theory and practice largely contributed to prepare the victory of fascism.

As an instrument of fight for the working class against capital the trade unions are losing their importance. But the fight itself cannot cease. The depressing tendencies grow stronger under big capitalism and so the resistance of the workers must grow stronger, too. Economic crises grow more and more destructive and undermine apparently secured progress. The exploitation is intensified to retard the lowering of the profit rate for the rapidly increasing capital. So again and again the workers are provoked to resistance. But against the strongly increased power of capital the old methods of fight no longer can serve. New methods are needed, and before long their beginnings present themselves. They spring up spontaneously in the wild [outlaw] strike, in the direct action.