this post was submitted on 29 Dec 2025
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[–] davel@lemmy.ml 13 points 1 day ago (1 children)

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.