The same concern was expressed, by Engels, in his Critique Of The Erfurt Programme, over the demand for a Welfare State . Points 8 and 9 of the programme advocated the taking over of various functions by the state. Engels opposed such a demand, because it amounted to “state socialism”, and encouraged workers to have undue faith in the capitalist state.
“8 and 9. Here I want to draw attention to the following: These points demand that the following should be taken over by the state: (1) the bar, (2) medical services, (3)pharmaceutics, dentistry, midwifery, nursing, etc., etc., and later the demand is advanced that workers’ insurance become a state concern. Can all this be entrusted to Mr. von Caprivi? And is it compatible with the rejection of all state socialism, as stated above?”
But, Marx and Engels position must be understood clearly here. They were opposed to calls for such a role by the capitalist state, and instead argued for workers to develop their own, independent provision. That indeed, is why they called for Direct as opposed to Indirect Taxation, not because the former was fairer than the latter, but because the former was more transparent, and thereby enabled workers to see exactly by how much they were being ripped off by the state, and would thereby be more likely to oppose the expansion of its activities at the expense of their own. In the programme he wrote for the First International, therefore, Marx writes,
“Because indirect taxes conceal from an individual what he is paying to the state, whereas a direct tax is undisguised, unsophisticated, and not to be misunderstood by the meanest capacity. Direct taxation prompts therefore every individual to control the governing powers while indirect taxation destroys all tendency to self-government.”
But, whilst they were opposed to calls for the state to take on these activities, rather than that workers should organise themselves to undertake them, that did not mean that they adopted a purist, ultra-left, opposition to such provision, where the capitalist state itself undertook such action. As Marx pointed out in his speech to the First International on education,
“There was a peculiar difficulty connected with this question. On the one hand a change of social circumstances was required to establish a proper system of education, on the other hand a proper system of education was required to bring about a change of social circumstances; we must therefore commence where we were.”
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