"Obviously, if you give to people according to their work and efficiency, then there will be richer people and there will be poorer people. The classes will come back again.

"As I have told you again and again, physically, people are not equal. You can give equal opportunity to all, but still a Picasso will be a Picasso, all people are not going to become Picassos. A Henry Ford will be a Henry Ford; to create wealth is an art in itself, and everybody cannot be a Henry Ford.

"Now if Gorbachev introduces the idea of each according to his work and his efficiencyhis intentions are absolutely good. I don't have even a small doubt about his good intentions for his people, for his land, but he is not a buddha. He is an unconscious man as everybody else is. The unconscious man does not know that his intentions may be good but the results may go wrong.

"I am in absolute favor of communism because I think it is the foundation for spiritual growth. But I am against socialism. It is a compromise with capitalism, and when you compromise with capitalism, capitalism will drown you.

"It seems Gorbachev has become too much interested in America – the high-rise buildings, miles and miles of cars – the richness has overwhelmed his mind. He has been reported to have said, 'What should I call my revolution?' It is not a revolution in the first place, it is anti-revolutionary. And then he thought about it, and said, 'Perhaps I should call it socialist capitalism, or capitalist socialism.' In both ways, capitalism will be the victor and communism will be the defeated. He has already stopped talking about communism, he is talking about socialism.

"Socialism I have been against always, because it is an effort to keep the capitalist incentive for people to work. What is the capitalist incentive for people? Private property: my house, my car, my wife, my children. That is the incentive, and it creates competition. My house should be better than your house. My wife should be more beautiful than your wife. My children should be educated better than your children. It starts competition, it starts ambition."