State socialism

State socialism is a political and economic ideology within the socialist movement that advocates state ownership of the means of production. This is intended either as a temporary measure, or as a characteristic of socialism in the transition from the capitalist to the socialist mode of production or to a communist society. State socialism was first theorised by Ferdinand Lassalle. It advocates a planned economy controlled by the state in which all industries and natural resources are state-owned.

Aside from anarchists and other libertarian socialists, there was, in the past, confidence amongst socialists in the concept of state socialism as being the most effective form of socialism. Some early social democrats in the late 19th century and early 20th century, such as the Fabians, claimed that British society was already mostly socialist and that the economy was significantly socialist through government-run enterprises created by conservative and liberal governments which could be run for the interests of the people through their representatives' influence, an argument reinvoked by some socialists in post-war Britain. State socialism declined starting in the 1970s, with stagflation during the 1970s energy crisis, the rise of neoliberalism and later with the fall of state socialist nations in the Eastern Bloc during the Revolutions of 1989 and the fall of the Soviet Union.

Libertarian socialists often treat state socialism as synonymous with state capitalism, arguing that the economic systems of Marxist–Leninist states such as the Soviet Union were not genuinely socialist due to their continued use of commodity production, and wages as remuneration. Democratic and libertarian socialists claim that these states had only a limited number of socialist characteristics. However, others maintain that workers in the Soviet Union and other Marxist–Leninist states had genuine control over the means of production through institutions such as trade unions.