The term “state capitalism” confounds more than it illuminates.
The capitalist mode of production is founded on the M-C-M’ circuit. The state, by contrast, is not, because as the sovereign, it is the issuer of money. It doesn’t need to make a profit from its commodities or services because it creates money by fiat[1]. Therefore the capitalist mode of production is exclusive to the private sector.
The term “state capitalism” confounds more than it illuminates.
The capitalist mode of production is founded on the M-C-M’ circuit. The state, by contrast, is not, because as the sovereign, it is the issuer of money. It doesn’t need to make a profit from its commodities or services because it creates money by fiat[1]. Therefore the capitalist mode of production is exclusive to the private sector.