Chapter VIII. Compensation or Confiscation?

Socialists, however, do not and could not envisage any such impossible situation. As Socialism necessarily involves the common ownership and democratic control of the means of production and distribution which is utterly impossible while the capitalists (or any party committed to the administration of capitalism) remain in political control, and as moreover the working of a socialist system will require the understanding and willing co-operation of the majority of the population, there can be no question of ending capitalism and introducing Socialism until after political control for that purpose has been achieved by the working class.

The problem against that background takes on its real character, one very different from that which puzzles those who argue about compensation versus confiscation. Capitalism is based on the exploitation of one class by another. Socialism will end it and will introduce

“Common ownership and democratic control of the means and instruments for producing and distributing wealth by and in the interest of the whole community.”

Note the last phrase ! Socialism is not a system of society designed to benefit one section of the community only. Its benefits, the products of the labour of all, will be freely available for all – including the former capitalists.

If, then, it is intended to introduce Socialism, and not merely to introduce a new form of State Capitalism, there is no need and no possibility of compensating the capitalists. No need, because they will be members of the community like any other members, and no possibility, because the only compensation that can be given to an exploiting class is to continue their right of exploitation and under Socialism there will be no exploitation. If there is exploitation the Social system, whatever form it takes, cannot be Socialism.

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