WELLS: I agree with much of what you have said. But I would like to stress the point that if a country as a whole adopts the principle of planned economy, if the government, gradually, step by step, begins consistently to apply this principle, the financial oligarchy will at last be abolished and socialism, in the Anglo-Saxon meaning of the word, will be brought about. The effect of the ideas of Roosevelt’s “New Deal” is most powerful, and in my opinion they are socialist ideas. It seems to me that instead of stressing the antagonism between the two worlds, we should, in the present circumstances, strive to establish a common tongue for all the constructive forces.
STALIN: In speaking of the impossibility of realizing the principles of planned economy while preserving the economic basis of capitalism I do not in the least desire to belittle the outstanding personal qualities of Roosevelt, his initiative, courage, and determination. Undoubtedly Roosevelt stands out as one of the strongest figures among all the captains of the contemporary capitalist world. That is why I would like once again to emphasize the point that my conviction that planned economy is impossible under the conditions of capitalism does not mean that I have any doubts about the personal abilities, talent, and courage of President Roosevelt. But if the circumstances are unfavorable, the most talented captain cannot reach the goal you refer to. Theoretically, of course, the possibility of marching gradually, step by step, under the conditions of capitalism, towards the goal which you call socialism in the Anglo-Saxon meaning of the word, is not precluded. But what will this “socialism” be? At best, bridling to some extent the most unbridled of individual representatives of capitalist profit, some increase in the application of the principle of regulation in national economy. That is all very well. But as soon as Roosevelt, or any other captain in the contemporary bourgeois world, proceeds to undertake something serious against the foundation of capitalism, he will inevitably suffer utter defeat.
The banks, the industries, the large enterprises, the large farms are not in Roosevelt’s hands. All these are private property. The railroads, the mercantile fleet, all these belong to private owners. And finally, the army of skilled workers, the engineers, the technicians, these too are not at Roosevelt’s command, they are at the command of the private owners; they all work for the private owners. We must not forget the functions of the State in the bourgeois world. The State is an institution that organizes the defense of the country, organizes the maintenance of “order”; it is an apparatus for collecting taxes. The capitalist State does not deal much with economy in the strict sense of the word; the latter is not in the hands of the State. On the contrary, the State is in the hands of capitalist economy. That is why I fear that, in spite of all his energy and abilities, Roosevelt will not achieve the goal you mention, if indeed that is his goal. Perhaps, in the course of several generations, it will be possible to approach this goal somewhat; but I personally think that even this is not very probable.
WELLS: Perhaps I believe more strongly in the economic interpretation of politics than you do. Huge forces driving towards better organization, for the better functioning of the community, that is, for socialism, have been brought into action by invention and modern science. Organization, and the regulation of individual action, have become mechanical necessities, irrespective of social theories. If we begin with the State control of the banks. and then follow with the control of transport, of the heavy industries, of industry in general, of commerce, etc., such an all-embracing control will be equivalent to the State ownership of all branches of national economy. This will be the process of socialization. Socialism and individualism are not opposites like black and white. There are many intermediate stages between them. There is individualism that borders on brigandage, and there is discipline and organization that are the equivalent of socialism. The introduction of planned economy depends, to a large degree, upon the organizers of economy, upon the skilled technical intelligentsia, who, step by step, can be converted to the socialist principles of organization. And this is the most important thing. Because organization comes before socialism. It is the more important fact. Without organization the socialist idea is a mere idea.