The acknowledged aim of socialism is to take the means of production out of the hands of the capitalist class and place them into the hands of the workers. This aim is sometimes spoken of as public ownership, sometimes as common ownership of the production apparatus. There is, however, a marked and fundamental difference.

Public ownership is the ownership, i.e. the right of disposal, by a public body representing society, by government, state power or some other political body. The persons forming this body, the politicians, officials, leaders, secretaries, managers, are the direct masters of the production apparatus; they direct and regulate the process of production; they command the workers. Common ownership is the right of disposal by the workers themselves; the working class itself — taken in the widest sense of all that partake in really productive work, including employees, farmers, scientists — is direct master of the production apparatus, managing, directing, and regulating the process of production which is, indeed, their common work.

Under public ownership the workers are not masters of their work; they may be better treated and their wages may be higher than under private ownership; but they are still exploited. Exploitation does not mean simply that the workers do not receive the full produce of their labor; a considerable part must always be spent on the production apparatus and for unproductive though necessary departments of society. Exploitation consists in that others, forming another class, dispose of the produce and its distribution; that they decide what part shall be assigned to the workers as wages, what part they retain for themselves and for other purposes. Under public ownership this belongs to the regulation of the process of production, which is the function of the bureaucracy. Thus in Russia bureaucracy as the ruling class is master of production and produce, and the Russian workers are an exploited class.