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The Surplus-Value Doctrine

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The Socialists argue that the position of the worker cannot improve because the capitalist, possessing the monopoly of property, pockets all that the worker produces except the mere cost of his subsistence, which, owing to the "Iron Law of Wages," is given to the workman in the form of wages. "The amount of wealth which the labourer produces in the time for which he has sold his labour-force is out of all proportion to what it costs to produce and maintain his labour-force for that time. This, the difference between what he produces and his own cost of production, is surplus-value, and is taken and divided up by the capitalist into rent, interest, profit. This surplus-value, then, this profit, is so much robbery effected by taking advantage of the necessity of the proletarian—the naked propertyless labourer."[182] "All that the worker produces beyond what is absolutely necessary to keep himself and his offspring in life, this surplus beyond subsistence—this difference between the recompense of labour and its products—this unrighteous subtrahend, this swag, is the booty alike of slavelord, serflord, and drudgelord, or capitalist."[183] The question now arises: "How does the capitalist secure this surplus-value of labour without paying for it? If the workman is free, why cannot he insist on receiving, not the mere exchange-value of his commodity—'labour-power'—but the full value of the labour he expends for the capitalist? The capitalist obtains this surplus-value owing to his monopoly of the means of production. The labourer cannot, as a rule, command more than his cost of subsistence in return for his labour—although his wages, like the prices of all commodities, sometimes rise above this and sometimes fall below—because, although apparently free, he is really not free. He must sell his labour-power in order to live; he has no other commodity to dispose of. Consequently he must accept the terms that the purchaser will offer, subject only to two conditions—his own cost of subsistence and the fluctuations of the market."[184] "Owing to the monopoly of the means of production in the past, industrial inventions and the transformation of surplus income into capital have mainly enriched the proprietary class, the worker being now dependent on that class for leave to earn a living."[185]

The Surplus-Value Doctrine, like the preceding doctrines, is founded rather upon imagination than upon fact. In the first place, it is absurd to speak of a "capitalist class" which, having a "monopoly of the means of production," exploits "the naked and propertyless labourer." This picture is a fancy picture. In the second place, "class" is not synonymous with "caste." The population is not divided into two rigidly defined and limited castes of capitalists and wage-earners. There is neither a monopoly of capital nor a monopoly of labour. Capital is founded by thrift. Most respectable workmen are capitalists to a greater or lesser extent. Every day workmen become capitalists. It should not be forgotten that many of the wealthiest men, such as Rockefeller, Vanderbilt, Carnegie, Krupp, the first Rothschild, Sir Thomas Lipton, Passmore Edwards, and many others, have risen from the ranks and were working men—and every day capitalists lose their money and become workmen. Workmen may become capitalists by thrift. Co-operating workmen in England, France, Germany, and other countries own vast industrial undertakings, banks, &c. In those districts where thrift and co-operation are general (France, Switzerland, Holland) the "naked and propertyless labourers" disappear, whilst in equally prosperous districts where improvidence is general, they are many. The prosperity of the working classes in France, Switzerland, Holland, and other countries disproves the assertion that the workman is condemned to everlasting poverty because of the Surplus-Value Doctrine.

Assertions in support of the "Surplus-Value Doctrine" such as "Carnegie and other millionaires have wrung their wealth literally out of the bodies of the underfed"[186] are as malicious as they are untrue. Men like Carnegie and Krupp have not "wrung their wealth out of the bodies of the underfed," but out of Nature. They have created vast industries in barren places, and the industries which they have created nourish now tens of thousands of working men. Men like Krupp and Carnegie have diminished misery, not increased it. Their capital, created by their brains with the assistance of labour out of Nature, has rather enriched labour than that labour has enriched Carnegie and Krupp. Their wealth is not dead wealth; it produces wages and articles of use. The "Surplus-Value Doctrine" is a grotesque distortion of, and an unjustified protest against, the fact that manufacturers and other organisers and directors of labour will not work for nothing.

We have seen in the foregoing that, according to the fundamental Socialist doctrines, "labour is the only source of wealth." We have also seen that, according to the "Iron Law of Wages" and the "Law of Increasing Misery," the workmen are condemned to great, permanent, and constantly increasing misery. Further, we have learned that, according to the "Surplus-Value Doctrine," all the fruit of their labour, minus the cost of their bare subsistence, is taken from the workers by the capitalists. Hence it is only natural and logical that the assertion of the fundamental doctrines, namely—

British Socialism

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