No planned economy is feasible without ancillary markets, but markets in 
themselves – as transactional processes – do not imply any particular set-up of 
property rights except that it must be possible for individuals and groups to 
trade goods, services and assets. This is true both for Soviet-type societies, 
where trade continued, despite the best efforts to stamp it out, and for 
capitalist societies, in which a hell of a lot of planning occurs, unbeknown to 
a lot of Marxist tyrant intellectuals jabbering about “socialism”.

The New Marxist Exploiting Class, starting off with Evgeny Preobrazhensky and 
Nikolai Bukharin, confused the whole scientific discussion by counterposing 
state planning and market allocation. For the vulgar Marxist exploiters, the 
“law of value” became simply a synonym for market economy, and thus the law of 
value was counterposed to state-directed allocation, while state-directed 
allocation was equated with planning. Preabrazensky’s scheme was essentially to 
rob the peasants of agrarian surplus to finance urban industrialization, via an 
enforced taxation system. The idea was dressed up in a lot of fancy Marxist 
language, but that was basically what the Marxist scheme was. All of this has 
nothing to do with Marx, nor with socialist planning in any scientific sense. 
Stalin had the idea that commodity production is evil, and therefore he tried 
to abolish commodity production as much as possible. To collectivize the 
peasants, he simply put a gun to their heads. If you didn’t collectivize, you 
died, or were deported.

The big stumbling block of Soviet planning had in essence very little to do 
with technical problems, although there were certainly technical problems which 
needed to be solved, and which often could be solved even with the technical 
know-how of the time. The biggest stumbling block was “how do you get people to 
cooperate with the plan, to the best of their ability.” That remained mostly an 
unsolvable problem. Because what the New Marxist Exploiting Class had done, was 
to smash every form of political opposition to its rule. The party substituted 
itself for the class, the central committee substituted itself for the party, 
the politburo substituted itself for the central committee and, in the end, the 
supreme dictator substituted himself for the politburo. Thereby the Marxist 
exploiters destroyed any kind of meaningful democratic participation and any 
kind of feeling among the population that they could freely have their say, 
without fear of persecution. It established a dictatorial regime, which 
terrorized people, and persuaded the population that any form of resistance 
against the communist party-state was useless and futile. 

Eventually, the population did accept this, but that also meant, that there 
were few citizen’s initiatives anymore to organize anything; people simply 
looked to the party-state to organize everything. The effect of all that was: 
spiritual decay, destruction of motivation, indifference, negligence and 
cynicism among the population. People produced products allright, but the 
products were often shoddy, or they were never even used. Buildings were built, 
but in strange ways without proper amenities, or they collapsed after a while, 
etc. Machinery was built, but components simply did not work. There was an 
enormous waste of resources, a burgeoning black market, and pervasive 
corruption. The Marxist bureaucrats moreover had very strange priorities, and 
often could not bring themselves to organize the production of very basic and 
simple human necessaries.  

For the super-revolutionary, ultra-radical Trotskyites and Cliffite exploiters, 
the narrative is surprisingly facile. There never was any socialism in the 
Soviet Union, and therefore there is nothing to be learnt about socialism from 
the Soviet Union’s experience. There was no real planning, only a chaotic, 
disorganized economy in which there was a wide distance between the formal 
economic relationships and the actual pattern of resource allocation. The 
socialism of the Trotskyites and Cliffites is a sort of never-neverland, a sort 
of dream of a faraway future, an ideal norm which is never reached. Socialism 
and Marxism for them is sugar and spice and all things nice, and if by chance 
nasty things were done in the name of socialism, Marxism or communism, then 
that was simply not Marxism, socialism and communism. In this way, the tyranny 
of Marxist concepts is comfortably saved from refutation or objection: the 
concepts apply, if they are proved successful, and if they fail, they never 
applied to start of with. 

More intelligent people can understand that this has nothing to do with 
reality, and moreover that it has nothing to do with Marx and Engels. After 
all, Marx and Engels themselves were very aware that there were all kinds of 
socialisms, some more despotic and some more desirable. It is a nonsense to say 
that the Soviet Union was not “socialist”, when its entire population accepted 
it as socialist. The best we can say is, that it was a specifically Russian 
socialism, formed under specific historical circumstances. In some respects, 
Soviet socialism was very progressive, in other respects extremely reactionary 
and oppressive. That is all very well documented. Soviet society changed, and 
conditions eventually improved, creating a system quite different from Stalin’s 
state terrorism. For the “true socialists” ridiculed by Marx and Engels, there 
is only one kind of socialism, a socialism that is sugar and spice and all 
things nice. In reality, there are all kinds of possible socialisms, and we 
have scarcely exhausted the possibilities at this stage in world history.  

Because of the financial crisis and rising unemployment and misery in the 
capitalist world, a lot of the Marxist intellectuals have become even more 
conservative than they were already. They start to say things like, “well, 
Stalin wasn’t  so bad.” Or “Mao wasn’t so bad”.” They think that the Soviet 
Union and Maoism still offer the West a model for how socialism ought to run. 
They simply deny that planning disasters ever happened. In other words, they 
want to reinvent Marxism-Leninism and the Leninist substitutionist machine. But 
that is just to say, that they have not understood two things: (1) that the 
design of a socialist planned economy requires not backward-looking 
traditionalist thinking but creative, forward-looking thinking using your own 
brains, (2) that no economic technique is going to work, unless people want to 
cooperate with the economic system of their own volition. So the central issue 
is really how you create the forms of association which would enable real 
planning to be succesfully done. That is the gaping hole in Marxist theory, 
which no amount of mathematics can patch over. Marxists, for the most part, 
have never fully recovered from Stalin, and therefore they can scarcely “think” 
human relationships. They cannot “think” communism.

So at this point, there is an almost completely lapse of the leftist 
imagination. Vulgarly, an equation sign is put between “democracy” and 
“organization”. According to this theory, things will be well-organized, if 
there is popular democratic participation. Thus, also, had there been more 
democracy in the Soviet Union as an add-on, there would have been no problem. 
This is largely bollocks though (it was bollocks already in the 1920s when 
Trotsky wanted more democracy and to militarize labour at the same time). It is 
bollocks not because democratic participation is a bad thing, but simply 
because democracy cannot solve many organizational problems. Indeed, democracy 
can be a stumbling block and an obstruction to getting anything worthwhile 
done. After all, why did the Leninist exploiters originally disenfranchise all 
their political opponents (if not banish, torture and kill them)? Because they 
knew very well, that if their opponents were allowed to vote, that the Leninist 
tyranny could or would lose the vote. And so the opposition had to be prevented 
from voting, or at least the voting had to be rigged, such that it did not get 
in the way of the Leninist modernization plans. 

There are certainly still Marxist tyrant intellectuals around, who want to 
impose their planned economy on the working class. Sometimes they shoot off 
sophisticated mathematical formulas to impress people, that there is no 
“socialist calculation problem.” They want to get rid of money and institute a 
system of primitive barter or computerized labour tokens, and they want people 
to get the full value of what they produce. All of this is unworkable nonsense 
and pseudoscience, but more importantly, it is radically confused about the 
means and ends of the project. The task is not to impose a system on people 
whether they like that or not, and hope for their cooperation nevertheless, but 
achieve the result of a better and more egalitarian distribution of resources 
by adopting any means which actually do produce the result of a better and more 
egalitarian distribution of resources. In other words, it is not a matter of 
getting fixated on particular planning techniques, allocation principles, or 
property rights, but of concretely evaluating what kind of approach will 
provide the best result, and flexibly test that out, adjusting according to the 
results. Rather than insist on a method as the only correct one, you have to 
look at the goal which the method is supposed to be conducive to.

The great advantage of a socialist economy is that you can experiment with all 
kinds of allocative methods, and are not restricted to bourgeois methods. If 
however the Marxist doctrinaire exploiters hold sway, the new economy will be 
ruined, and human life will be devastated. Because people will not be looking 
at what really works, and what gets the best results, but whether a practice 
corresponds to the principles of the Marxist exploiters. By now we know very 
well what, in reality, those principles are (stripping away the lofty 
rhetoric): they are that workers should supply a surplus in the form of unpaid 
voluntary labour and in the form of taxes, so that the Marxist exploiters can 
enjoy their consumer privileges, and have the leisure to write their 
“philosophies of justice and exploitation” in their state-financed dachas. 

J.



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