ABSTRACT
The fiscal crisis of the capitalist state is the inevitable consequence of the structural gap between state expenditures and revenues. Competitive sector capital has little to gain from the social-industrial complex. Many small-scale capitalists are hostile to the education establishment because the extension of higher education reduces the supply of low-paid, unskilled and semiskilled laborers. Large-scale monopoly sector capital, the smaller technological companies in the state sector and the surplus population have relatively little influence or power in the House or Senate. The core of the Republican Party is middle-scale and large-scale capital in the traditional industries, small business, competitive sector and professional and managerial strata. State workers are being proletarianized by the imperatives of capitalist development—the socialization of the costs and expenses of production. The ultimate scope and limits of capitalist reform depend on the ongoing political struggles and movements that shape the social-industrial complex.
