In the initial stages of socialist transitions the party-state and a coalition of revolutionary classes characteristically eradicate the dominant property-based class divisions between landlord and tenant and between capitalist and industrial worker. In the course of state appropriation of industry and commerce and collectivization of agriculture the largest remaining concentrations of private wealth and power are further reduced. These changes eliminate forms of inequality embedded in the private ownership of property and the ability of property owners to appropriate the labor of producing classes.