A virtually unnoticed shift took place within this political framework toward war-communist restrictions of the market economy. Originally instrumental in defending against foreign capital and establishing independence internally, the state monopoly on grain (introduced by the Provisional Government’s law of 25 March 1917) was followed by plans for both a state monopoly on foreign trade and a property tax, as a way of “supplementing” the budget.8 At the same time, in The Impending Catastrophe, he drew a clear line between state control of the bourgeoisie and the expropriation of private property that applied to the bourgeoisie, even arguing against expropriation in this specific case:

If nationalisation of the banks is so often confused with the confiscation of private property, it is the bourgeois press which has an interest in deceiving the public… Whoever owned fifteen rubles on a savings account would continue to be the owner of fifteen rubles after the nationalisation of the banks; and whoever had fifteen million rubles would continue after the nationalisation of the banks to have fifteen million rubles in the form of shares, bonds, bills, commercial certifi cates and so on.9

The purpose of nationalization was to oversee the financial and economic processes, the actual collection of personal income taxes, etc. Lenin contrasted reactionary-bourgeois regulation to revolutionary democratic regulation, with bottom-up control, with whose limitations he soon came face-to-face. He had already stipulated that the construction of the most modern heavy industry would require state-of-the-art technical-technological progress, to apply “much of what is scientific and progressive in the Taylor system; we must make wages correspond to the total amount of goods turned out, or to the amount of work done by the railways, the water transport system, etc., etc.” Lenin thought that the feasibility of socialism depended on the successes that could be achieved in the field of “combining Soviet power and the Soviet organisation of administration with the up-to-date achievements of capitalism.”10 Apart from the cooperation and competition of economic sectors and modes of production, Lenin also spoke about the “competition of communes,” and etched out its moral driving forces more clearly than its material and economic bases. In contrast to the “allowances” made to market and financial conditions and the “bourgeois cooperatives,” the “socialist state can arise only as a network of producers’ and consumers’ communes, which conscientiously keep account of their production and consumption, economise on labour, and steadily raise the productivity of labour, thus making it possible to reduce the working day to seven, six and even fewer hours.”

Lenin had taken note of this, and by the spring of 1918, famine ravaged the cities On his initiative, the Council of People’s Commissars introduced the “dictatorship of state subsistence,” the formation of the poor peasant committees. Many writers tend to wax theoretical about these spontaneous measures, as if Lenin had ventured upon these in line with a concept he had invented earlier; on some theoretical basis; or even with the assumption that some sort of special socialism or theoretical model could be erected on the basis of these actions. In fact, a political turn was outlined in May 1918, leading from a state-supervised mixed market economy to a dictatorship of state subsistence that swept spontaneously toward war communism. The latter, in the beginning, was determined and validated by the internal armed counterrevolution and interventionist military attacks.