chapter  79
5 Pages

VALUE IN THE ECONOMY OF THE STATE

The state is guided like any other entrepreneur in its purely private economic undertakings entirely by value in exchange. It would be an error to make calculations on any other basis than that adopted by any private owner governed by rational economic principle. If the conditions of the worker are bad, the state should surely be the first to set an example of reform by improving conditions in its industries, just as the enlightened absolutist governments set the first example in improving conditions of life for the peasantry on the state domain. In acting as a private entrepreneur the state should also bear in mind its duties as state and avoid increasing its revenues by means which as the state it must condemn and oppose. Thus the exchange-value computation of the state is illumined by a ray of purer social valuation.