Abstract
This paper is a critical analysis of the concept of the State under capitalism. In part I existing Marxist theories of the state are criticised for their functionalism in separating different instances such as economics and politics. In part II an alternative view of the State as constituting the wage relation is suggested. The wage relation is seen not as an exchange relation between equivalents but as a relation of submission. That is, the possibility of exchange is explained by state control as the mode of socialisation.
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