On James O’ Connor’s "the Theory Of The Fiscal Crisis Of The State"

James O’Connor’s extends functions of the state to the field of social reproduction, gives the state the functions of accumulation of economy and establishes a direct link between the capitalist economic crisis and the functions and the state. On this basis, he creates "the theory of the fiscal crisis of the state". In O’Connor’s eyes, the capitalistic state has two basic functions——accumulation and legitimization. State expenditures have a twofold character corresponding to the capitalistic state’s two basic functions:social capital and social expenses. O’Connor discusses the Fiscal Crisis of the capitalistic state on the foundation of the both basic premises. He points out that the process of capital accumulation in the private sector, especially in the monopoly sector leads more and more capital costs to be socialized, but the profits are appropriated privately. The socialization of costs and the private appropriation creates a "structural gap" between state expenditures and state revenues, which eventually causes the fiscal crisis of the state. O’Connor further points out that any measures within the capitalist system can not solve the financial crisis of state, the only lasting solution to the crisis is socialism."The theory of the fiscal crisis of the state" provides theoretical basis for explaining the current debt crisis in the Europe and United States, and is of some enlightenment value to understand and solve the local government debt crisis of our country and comprehensively deepen reform. Under the background of the capitalist countries strengthening the macro-control of economy,"The theory of the fiscal crisis of the state" is brought up. It is the product of the union between Marxism and the development of contemporary capitalism.