: ▁U top ian ▁and ▁Scient ific ▁( 1 8 8 0 ), ▁Friedrich ▁Eng els ▁argued ▁that ▁state ▁ownership ▁does ▁not ▁do ▁away ▁with ▁capital ism ▁by ▁itself , ▁but ▁rather ▁would ▁be ▁the ▁final ▁stage ▁of ▁capital ism , ▁consisting ▁of ▁ownership ▁and ▁management ▁of ▁large - scale ▁production ▁and ▁communication ▁by ▁the ▁b our ge ois ▁state . ▁He ▁argued ▁that ▁the ▁tools ▁for ▁ending ▁capital ism ▁are ▁found ▁in ▁state ▁capital ism . ▁ ▁Orig ins ▁and ▁early ▁usage ▁▁ ▁The ▁term ▁was ▁first ▁used ▁by ▁Wilhelm ▁Lie b k ne cht ▁in ▁ 1 8 9 6 ▁who ▁said : ▁" N ob ody ▁has ▁comb ated ▁State ▁Social ism ▁more ▁than ▁we ▁German ▁Social ists ; ▁nobody ▁has ▁shown ▁more ▁distinct ively ▁than ▁I , ▁that ▁State ▁Social ism ▁is ▁really ▁State ▁capital ism ". ▁ ▁It ▁has ▁been ▁suggested ▁that ▁the ▁concept ▁of ▁state ▁capital ism ▁can ▁be ▁trac ed ▁back ▁to ▁Mik h ail ▁Bak un in ' s ▁critique ▁during ▁the ▁First ▁International ▁of ▁the ▁potential ▁for ▁state ▁explo itation ▁under ▁Marx ist - in sp ired ▁social ism , ▁or ▁to ▁Jan ▁W ac lav ▁Mach aj ski ' s ▁argument ▁in ▁The ▁Intel lect ual ▁Work er ▁( 1 9 0 5 ) ▁that ▁social ism ▁was ▁a ▁movement ▁of ▁the ▁intellig ents ia ▁as ▁a ▁class , ▁resulting ▁in ▁a ▁new ▁type ▁of ▁society ▁he ▁term ed ▁state ▁capital ism . ▁For ▁an arch ists , ▁state ▁social ism ▁is ▁equivalent