State capitalism demands that the state control the "commanding heights" of the economy, but leave the market to handle the less important things. This policy allows the player to construct railways, construct and upgrade factories, and subsidize and prioritize factory hiring. While capitalists can still build factories, it is at double the costs they would face in a laissez faire market. Also, capitalists cannot expand factories beyond their initial level, requiring player intervention to build up significant industry in one province. This policy also requires a minimum taxation level of 25%. This policy is seen by many players as the ideal, as it allows the player almost total control, while still allowing the capitalists to contribute, however meagerly.