production is largely funded by the state at public expense, but private owners reap the profits. This practice is held in contrast with the ideals of both socialism and laissez-faire capitalism. There are various theories and critiques of state capitalism, some of which existed before the October Revolution. The common themes among them identify that the workers do not meaningfully control the means of production and that capitalist social relations and production for profit still occur within state capitalism, fundamentally retaining the capitalist mode of production. In Socialism: Utopian and Scientific (1880), Friedrich Engels argued that state ownership does not do away with capitalism by itself, but rather would be the final stage of capitalism, consisting of ownership and management of large-scale production and communication by the bourgeois state. He argued that the tools for ending capitalism are found in state capitalism. In Imperialism, the Highest Stage of Capitalism (1916), Lenin claimed that World War I had transformed laissez-faire capitalism into the monopolist state capitalism. Origins and early usage In the Socialism: Utopian and Scientific (1880), Friedrich Engels described state ownership, i.e. state capitalism, as follows: If the crisis revealed the incapacity of the bourgeoisie any longer to control the modern productive forces, the conversion of the great organizations for production and communication into joint-stock companies and state property shows that for this purpose the bourgeoisie can be dispensed with. All the social functions of the capitalists are now carried out by salaried employees. The capitalist has no longer any social activity save the pocketing of revenues, the clipping of coupons, and gambling on the stock exchange, where the different capitalists fleece each other of their capital. Just as at first the capitalist mode of production displaced the workers, so now it displaces the capitalists, relegating them to the superfluous population even if not in the first instance to the industrial reserve army. Engels argued that the tools for ending capitalism are found in state capitalism, further writing: But neither the conversion into joint stock companies nor into state property deprives the productive forces of their character as capital. In the case of joint-stock companies this is obvious. And the modern state, too, is only the organization with which bourgeois society provides itself in order to maintain the general external conditions of the capitalist mode of production against encroachments either by the workers or by individual capitalists. The modern state,