The argument. Both wanted capitalism dead. Marx insisted the working class must first seize state power and wield it — a workers' dictatorship — before the state withers. Bakunin answered that any state, "red" or otherwise, breeds a new ruling class: "when the people are being beaten with a stick, they are not much happier if it is called the People's Stick." Beneath the theory ran a personal war of pamphlets, faction-packing and accusations of conspiracy.
The fallout. At the 1872 Hague Congress, Marx's faction expelled Bakunin and moved the International's seat to New York, effectively killing it. The anarchist wing regrouped at St. Imier. From this point on, the anti-capitalist world has two permanent, mutually excommunicated lineages — and every Marxist state that later shot its anarchists (Kronstadt 1921, Barcelona 1937) was, for anarchists, Bakunin's prophecy arriving on schedule.
STAKES: THE STATE — WEAPON OR ENEMY!