Recently a correspondent posed some questions to me that I would like to 
respond to publicly since others might get something out of my response.

Q: “How would a socialist system account for jobs that don’t occur on 
property? Or small businesses that adhere to the service industry where 
minuscule amounts of profit comes from labor time as opposed to capital 
investment? i.e., I get paid $22 per hour / 89.50 labor rate. 60 
otherwise goes overhead. And I sell the parts my boss invests in with 
his capital.”

I’ve been faced with this question and I’m unsure how to respond; what 
is a fairly short explanation of how a social system based on workplace 
democracy would replace this? What’s the socialist solution to this problem?

A: In general, I shy away from questions about how a future socialist 
system will work but in the Russian revolution the original intent was 
to only expropriate the big capitalists. In the immediate period, 
however, a policy of War Communism led to the expropriation of all 
privately owned firms, large and small. This was a function more of the 
need to disempower a middle class that was hostile to the revolution 
rather than comply with any socialist blueprint—which of course Marx 
never intended to begin with.

full: 
http://louisproyect.org/2014/07/08/questions-about-socialism-and-value-theory/
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