Chapter 105 Speech at the Enlarged Meeting of the Political Bureau of the Central Committee

(July 29, 1953) 1. During the transitional period, our transformation of private capitalist industry and commerce must gradually transition to socialism through state capitalism.The nature of our state capitalism is the same as that of the Soviet Union. The Soviet Union was a country under the dictatorship of the proletariat led by the Communist Party, and we are also a country led by the Communist Party, but the methods of implementation are quite different.We have followed the path pointed out by Lenin in 1918.The bourgeoisie does not accept state capitalism and has no other way to go. The general trend is that it must take this way.We do not apply state capitalism to the bourgeoisie, and there is no other way, because their property cannot be confiscated now, and they are needed.Turning independent private capitalist enterprises into restricted state capitalism is a big offensive. Only with the five conditions of resisting U.S. aggression and aiding Korea, land reform, suppressing counter-revolutionaries, "three evils" and "five evils" and ideological remolding, Coupled with the development of socialist industry and economy, this can be done.

Second, state capitalism is offensive in nature, but in the overall offensive there are some retreats, such as the "three powers" [1] and profit distribution for capitalists.Now the "three powers" of the capitalists are incomplete. Although the ownership has not been cancelled, the public party with management rights has been inserted, and their "three powers" have been restricted.Now it is necessary to make concessions, especially in terms of dividends, to make concessions to the capitalists so that they can get something. This is a partial retreat in the offensive.If the income is too little, they will not come.This again involves the question of the laws of capitalist economy.I said to them: "You should not only seek profits, but seek two interests. Labor and capital benefit both, and one profit does not work." The "five evils" attacked too far, and the capitalists lay down. It is called to give him certain benefits. He got up, this is a 25% bonus.The workers must be persuaded to make this concession in exchange for state capitalism; if this step is not conceded, the capitalists will have nothing to gain, nothing to gain, and state capitalism cannot be obtained.After we adjusted the business, the business problem was solved, and we also retreated, retreating to three to seven [2].The industry has to make some concessions before it can be resolved.Comrade Li Lisan [3] said that it is correct to flexibly use the economic laws of capitalism, but it is not complete.In our society, the economic law of capitalism is a restricted economic law. The so-called capitalist economic law is the exploitation of surplus value.But now some factories allow too little exploitation by capitalists, and this cannot be exchanged for state capitalism.

3. The transformation we are talking about now does not refer to the final transformation step of abolishing capitalist private ownership and turning it into a socialist enterprise, but refers to the gradual transformation of capitalist enterprises under the condition of acknowledging the limited and incomplete private ownership of capitalists. Transformation into state capitalist enterprises, i.e. state capitalist enterprises under the management of the people's government, linked and co-operating with the state socialist economy in various ways, and subject to workers' control.This kind of capitalist enterprise is no longer the kind of capitalist enterprise before liberation. They mainly produce for the needs of the country and the people, and capitalists can no longer seek profit.Of course, the workers still have to produce part of the profits for the capitalists, but this part of the profits accounts for at most 25% of the total profits; and more than 75% of the profits are for the state (income tax) and for the workers. (welfare payments) and production for the expansion of enterprise equipment (provided funds - which contains a small part for the production of profits for capitalists).Therefore, this kind of capitalism is no longer capitalism in the ordinary sense, but a special and new type of capitalism, that is, capitalism under the leadership of the working class, which has certain socialist characteristics and different degrees. Case.It must be pointed out that not all or most capitalist enterprises have achieved this step at present, and it will take several years of hard work to achieve this step, but this step can definitely be achieved.In state capitalism, public-private partnerships have socialist elements and are semi-socialist in nature.But it is inappropriate to call all state capitalism, such as accepting processing orders, semi-socialist. It should be said that it has some socialist characteristics.

What are the conditions for the transformation of state capitalism into socialism? First, thousands of large socialist factories; The conditions inside the state capitalist enterprises, including the party organizations and trade unions, together with our leadership, can ensure that the enterprises are transferred to socialism, canceling the ownership of capitalists, and at the same time arrange them well.Here, the first step is to change capitalism into state capitalism, from independent, unrestricted capitalism with a free market to non-independent, restricted capitalism without a free market, that is, state capitalism.The second step is to change from state capitalism to socialism and eliminate classes.

Fourth, the issue of "different but equal treatment" for private enterprises.There is no discrimination in terms of ownership, workers can freely dispose of income, and capitalists can also freely dispose of dividends.In terms of raw material supply, loans, transportation, etc., "don't look at the monk's face and see the Buddha's face." The "Buddha's face" is the working class. For the sake of the workers, the capitalists also need to be given necessary care.The general principle of salary and treatment is also "equal treatment", generally not lowered for high ones, and not necessarily raised for low ones, it depends on the specific conditions and technical level. "Equal treatment" also includes that capitalists have the right to vote and be elected.In this regard, formally, each person has one vote, but because of the large number of workers, in practice the workers have the upper hand.

5. The state focuses on heavy industry, but it must also develop local state-owned industries (not blindly), engage in state capitalism, and engage in cooperative handicrafts.The handicraft industry is the ocean, not the sea.The handicraft industry generally needs to be developed, and some parts need to be phased out.It is even more difficult to carry out handicraft cooperatives than agricultural cooperatives, and both are more difficult than state capitalism. The method of expropriation cannot be adopted for individual handicrafts and individual agriculture, because they are down-to-earth laborers who are neither capitalists nor subordinates. There are no workers.For them, it can only be achieved step by step through persuasion, inspiration and willingness, and how many years of persuasion they are going to do.Without local state-owned industries, state capitalism, and cooperative handicrafts, key construction cannot be completed.

6. Some people in our party have reflected the opinion of the capitalists that the state specializes in heavy industry and that light industry is left to private individuals.We can't take this line, the state can't do the raw materials, and the capitalists can't do the manufacturing.There are a large number of private light industrial factories that want to follow the road of state capitalism, and at the same time they must develop local state-owned industries, such as light industries such as cotton mills and gold pen factories.The increased purchasing power of the people must be met by state-owned enterprises, mainly local state-owned enterprises, and private enterprises can only take up a small part.State capitalism is also one of the sources of accumulated funds, such as taxation, and can also train cadres, technicians and managers. Even so, we still need to develop local state-owned industries.The profits of 9 trillion yuan [4] handed over by local industries are too high and should be lowered to facilitate the development of local industries.Local industry turned over too much profits, and too little investment in expanding reproduction, which is not conducive to exerting local enthusiasm.

7. Criticism of the policy of "three highs", that is, high prices, high interest rates, and high profits, should not be overstated, but must be analyzed.Lowering the price of industrial products is the fundamental line of industry, but it must be lowered step by step.Prices are still governed by supply and demand.The current problem is that what should have been lowered has not been lowered, and what should have been raised has not been raised, such as grain prices.After the price of sugar was reduced, it was out of stock again, and the price had to be raised.We must be cautious when lowering prices, and use analytical methods to solve problems according to the situation.Private businessmen often take advantage of price loopholes, and it is more difficult to raise prices after they have been lowered, and the masses will be dissatisfied.Therefore, do not criticize the "three highs" policy in general.We must see that prices are high and low, some are high today and should be lowered tomorrow, and some should be raised tomorrow.Wages should not be raised too high, it is easy to raise but difficult to lower.

8. You must be prepared to engage in state capitalism, and if you are unprepared, do not engage in it.To engage in state capitalism, there must be conditions, including political work and economic work conditions.Just like fighting wars in the past, don't fight unprepared battles.Cadres should use local materials to train and train trade union chairmen and branch secretaries in factories.It takes three to five years to complete the transformation of private capitalism into state capitalism in a planned, step-by-step, and prepared manner. Nine, the use of capitalist economic laws.Under the domination of the socialist economic laws, the proper use of the capitalist economic laws, the capitalist economic laws are restricted.The socialist economic law is to develop production and ensure demand. This is the main and basic economic law that plays a leading role.But the economic laws of capitalism exist objectively.When things exist, laws exist and cannot be destroyed; when things are restricted, laws are also restricted.If you do not implement the two interests of labor and capital, but turn it into one, you do not understand this law.

10. Private retailers who wholesale goods from state trading enterprises and sell them at prices set by the state can and should be counted under state capitalism.It is the hands and feet of state-run trade. Although the property is still yours now, it can be changed to be paid by the state-owned trade enterprise in the future.Is it state capitalism that a private business that wholesales goods from international trade companies and then resells them to others? I don't make a conclusion, and you can discuss it.Other private businesses, which have no connection with state-owned enterprises, operate in the free market, and freely overflow, cannot be regarded as state capitalism.

11. Discuss the question of the law of value again.If you can't read the book, it's better to discuss it according to the problem.In September, the materials were sorted out and sent to various places. Published based on the transcript of the speech kept by the Central Archives. -------------------------------------------------- ------------------------------ note [1] Refers to the ownership, employment and management rights of capitalists to their enterprises. [2] This refers to the general proportion of the total commodity circulation in retail sales of public and private commerce in the country. [3] Li Lisan, then Minister of Labor of the Central People's Government and Vice Chairman of the All-China Federation of Trade Unions. [4] The calculation here is based on the RMB in circulation at that time.The People's Bank of China has issued new Renminbi since March 1, 1955 to replace the old Renminbi in circulation.According to regulations, one yuan of new currency is equal to ten thousand yuan of old currency.