ment, is, with increasing frequency, appealed to by the capitalist class. Accordingly, in modern society the state is called upon more and more to step in and take a hand in the regulation and management of the economic mechanism, and ever stronger are the means placed at its disposal and employed by it in the fulfillment of this function. The economic omnipotence of the state, which appeared to the Manchester School as a socialist Utopia, has developed under the very eyes of that school into an inevitable result of the capitalist system of production itself.
5. State Socialism and the Social Democracy.
The economic activity of the modern state is the natural starting point of the development that leads to the Co-operative Commonwealth. It does not, however, follow that every nationalization of an economic function or of an industry is a step towards the Co-operative Commonwealth, and that the latter could be the result of a general nationalization of all industries without any change in the character of the state.
The theory that this could be the case is that of the state Socialists. It arises from a misunderstanding of the state itself. Like all previous systems of government, the modern state is pre-eminently an instrument intended to guard the interests of the ruling class. This feature is in no wise changed by its assumption of features of general utility which affect the interests not of the ruling class alone, but of the whole body politic. The modern state assumes these functions often simply because otherwise the interests
