Discussion with Economists on Political Economy Textbook

Record of the Discussion of 24 April 1950

at 23.30 hours

I wanted to make a few critical observations about the new model of the textbook on political economy.

I have read about a 100 pages relating to pre-capitalist formations and to capitalism. I also looked at a little of the section on socialism. About socialism I will talk another time. Today I want to talk about the shortcomings relating to the section on capitalist and pre-capitalist formations. The Commission's work has proceeded along the wrong track. I have said that the first variant of the textbook model should be accepted as the basis. And this, evidently, was understood to mean that the textbook does not need any particular corrections. This is wrong. Substantial corrections are needed.

First and the main shortcoming of the textbook, which shows a complete ignorance of Marxism, is regarding the periods of manufacture and machine production under capitalism. The section on the period of manufacture capitalism is bloated, it has been allotted 10 pages and is more prominent than the period of machine production. In fact, the period of capitalist machine production is absent. It has simply vanished. The period of machine production has not been given a separate chapter, it has been allotted a few pages in the chapter on 'Capital and Surplus Value'. Take Marx's Capital. In Capital, the manufacture period of capitalism occupies 28 pages, and the period of machine production -- 110 pages. Also, in other chapters, Marx talks a lot about the period of machine production. Such a Marxist as Lenin in the work The Development of Capitalism in Russia paid especial attention to the machine period. Without machines there is no capitalism. Machines are the main revolutionising force which have transformed society. It has not been demonstrated in the textbook what actually comprises a system of machines. About the system of machines, literally only one word has been said. Therefore, the whole picture of the development of capitalism has been distorted.

Manufacture is based on the hand labour of artisans. The machine sweeps aside hand labour. Machine production is large-scale production and is based on the machine system.

We have to take into account that our cadres, our youth -- our people have had 7-10 years of education. They are interested in everything. They can look up Marx's Capital, and Lenin's works. They can ask: why is it that the exposition of the question has not been done in the manner of Marx and Lenin? This is the main shortcoming. We must elaborate the history of capitalism according to Marx and Lenin. In the textbook a special chapter on the period of machine production is needed, and the one on manufacture needs to be shortened.

The second serious shortcoming of the textbook is that there is no analysis of wages. The main problem has not been elucidated. Wages are considered in the section on pre-monopoly capitalism as Marx has done. There is nothing about wages under conditions of monopoly capitalism. A lot of time has passed after Marx.

What are wages? Wages are a minimum for livelihood plus some savings. It is necessary to show what is the livelihood minimum, nominal and real wages, and to demonstrate it vividly and convincingly. We are fighting capitalism on the grounds of wages. Take the vivid facts of contemporary life. In France, where you have a falling currency, one receives millions, but you cannot buy anything. The English shout that they have the highest level of wages and cheap commodities. And they all the time hide the fact that though nominal wages may be high , they are still not enough to provide the livelihood minimum, not to talk about savings. In England the prices for certain products, bread and meat, are low, but the workers get them on ration in small quantities. Other products are bought in the market at inflated prices. They have a multiplicity of prices. And the Americans are very bumptious about their high living standards, but according to their own data two-thirds of their workers are not provided with the minimum livelihood. All these tricks of the capitalists have to be exposed. We have to show, on the basis of concrete facts, to these English workers, who have been for long living off the super-profits and the colonies, that the fall in real wages under capitalism is an axiom.

We could tell them that during the civil war with us everybody was a millionaire. During this war the prices were at their lowest, bread was sold for one ruble per kilogramme but the products were rationed.

With us the calculations of wages are done differently. It is necessary to show on the basis of concrete facts the situation regarding the real wages in the country. This has a great revolutionary and propaganda importance.

It would be correct to deal with the question of wages in the section on monopoly capitalism and to return to it in contemporary terms.

In the model of the textbook a large chapter is devoted to primary accumulation. You may talk about it in a few words in two pages. It is mentioned here how a certain duchess drove peasants away from their lands. Who are you going to impress today by all this? And more important things have been left out. The epoch of imperialism provides much more vivid examples.

Regarding the plan of the structure of the textbook. The section on capitalism must be divided into two parts.: under A -- pre-monopoly capitalism and under B -- monopoly capitalism.

Now about the object of political economy. In the textbook what you get is not establishing the object of political economy but rather an introduction to it. There is a distinction between determining the object of political economy and its introduction. In this context the second variant is closer to the topic, though, here too, you end up with an introduction. Some economic terms used by Marx are explained here. This helps the reader to move towards an understanding of the economic works of Marx and Lenin.

It is written that political economy analyses the relations of production. But this is not comprehensible for every one. You say that political economy examines relations of production and exchange. This is wrong. Take exchange. There was no exchange in primitive society. It was not developed in slave society either. The term circulation will not do either. All this is not very useful for socialism too. It should be stated: Political economy examines the production and distribution of material goods. This is applicable to all periods. Production constitutes man's relation to nature, and distribution shows where the goods produced go. This is the purely economic side.

In the textbook there is no transition from the object of political economy to primitive society. Marx begins Capital with the commodity and why is it that you begin with primitive society? This needs to be explained.

There are two methods of exposition: one is the analytical and abstract method. This method begins with expounding the general and abstract concepts along with the usage of historical material. Such a method of exposition (it was used by Marx in Capital) is meant for people who are more prepared. The other method is historical. This method gives an exposition of the historical development of different economic systems and reveals the general concepts on the basis of historical material. If you want people to understand the theory of surplus value -- expound the problem from the moment surplus value arises. The historical method is meant for people who are less prepared. It is more accessible because it subtly leads the reader to an understanding of the laws of economic development. (He reads out the definition of the analytical and historical method).

In the textbook Engels' model of savagery and barbarism is used. This does not lead anywhere. It is rubbish. Engels in his work did not want to have any differences with Morgan, who at that time was moving towards materialism. That was Engels' business. But how does it concern us? People would say that we are bad Marxists once we do not adhere to the exposition according to Engels. Nothing of the sort. What we get here is a huge heap: stone age, bronze age, kinship system, matriarchy, patriarchy and to top it all savagery and barbarism. All this only confuses the reader. Savagery and barbarism were contemptuous expressions used by 'civilised' people.

There is a lot of gibberish in the textbook, unnecessary words and a lot of historical excursuses. I have read 100 pages and have crossed out 10 and could have crossed out more. In a textbook there should not be even a single superfluous word, the exposition must be sculpted exactly. And here at the end of the section you have these antics: you imperialists are scoundrels, you have slavery, bonded labour, etc. All these are like Komsomol antics and posters. This wastes time and creates confusion. We need to influence people's minds.

About Thomas More and Campanella you say that they were isolated and that they had no relations with the masses. This only evokes laughter. Is this relevant? So what ? Even if they had been close to the masses, what would that closeness have given us? That level of development of productive forces demanded inequality which arose out of the property relations. It was absolutely impossible to overcome this inequality. The utopians did not know the laws of social development. Here we have an idealist interpretation.

It is necessary that our cadres have a thorough knowledge of Marxist economic theory.

The first, old generation of Bolsheviks were very solid theoretically. We learnt Capital by heart, made conspectuses, held discussions and tested each others' understanding. This was our strength and it helped us a lot.

The second generation was less prepared. They were busy with practical matters and construction. They studied Marxism from booklets.

The third generation is being brought up on satirical and newspaper articles. They do not have any deep understanding . They need to be provided with food that is easily digestible. The majority has been brought up not by studying Marx and Lenin but on quotations.

If matters continue further in this way people would soon degenerate. In America people argue: We need dollars, why do we need theory? Why do we need science? With us people may think similarly: 'when we are building socialism why do we need Capital?' This is a threat for us -- it is degradation, it is death. In order not to have such a situation even partially we have to improve the level of economic understanding.

The present number of pages are not needed – it has been bloated to 766 pages. It is necessary to have no more than 500 pages, and half of these must be devoted to pre-socialist systems and half to socialism.

The authors of the first variant have shown no concern about explaining Marx's terminology which is used in Capital. The most frequently used terms by Marx and Lenin must be introduced from the very beginning so as to enable the reader to understand Capital and other works of Marx and Lenin.

It is bad that there are no arguments and no fights in the commission over theoretical questions. Remember that your work is of historical importance. Everybody will be reading the textbook. It is now 33 years that Soviet power exists yet we do not have a book on political economy. Everyone is waiting for it.

In literary terms the textbook suffers from bad editing. There is a lot of gibberish, and excursuses into civil and cultural history. It is not a textbook on cultural history. It needs fewer historical excursuses. They need be there only when necessary for the illustration of theoretical propositions.

Get hold of Marx's Capital and Development of Capitalism by Lenin and use them as a guide for your work.

When the textbook is ready we will put it before the court of public opinion.

One more observation. In the textbook capitalism is examined only in the industrial sector. It is necessary that the whole of the economy must be taken into account. In Capital Marx is also predominantly dealing with industry. But his objective was different. He had to expose capitalism and its ills. Marx understood the importance of the economy as a whole. This is evident from the importance he accorded to the Tableau Économique of Quesnay. We must not limit ourselves only to elucidating the problems of agriculture in the chapter on land rent.

We have not only exposed capitalism, we have overthrown it and now we are in power. We know what is the share and importance of agriculture for the national economy.

As with Marx, in our programme too, insufficient attention is paid to agriculture. This must be corrected.

We must study the economic laws in their entirety. We must not neglect agrarian relations under capitalism and socialism.

According to the notes of:

[L.A.] Leontyev, [K.V.] Ostrovityanov, [D.T.] Shepilov, [P.F.] Yudin.