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The method of production, however, is very different in our capitalistic era from the earlier eras. The industrial system herds the workmen into factories. Property and labor is no longer individualistic; it is social, it is corporate. Marx calls it "social production and capitalistic appropriation." Here is the eternal antagonism between the classes, the large class of laborers and the small class of the "appropriators" of their common toil.

These factories, where labor is herded, spring up willy-nilly wherever there is a capitalist who desires to enter business. They flood the markets, not by mutual consent or regulation, but by individual ambitions. Each capitalist is ruled by self-interest; and self-interest impels him to make as many goods as he can and sell them at as big a profit as he can. Result, economic anarchy, called "over-production" or "under-consumption" by the economists. This leads to panics and all their attendant woes—woes that are further heaped upon the proletarian by the fact that he must compete with machinery, which, being more and more perfected, forces him out of the labor market into the street.

These crises have the tendency to concentrate industry in fewer and fewer hands; the weaker capitalist must succumb to the inevitable laws of struggle and survival. The survivors fatten on the corpses of their fallen competitors. Thus the factories grow larger and larger, the number of capitalists fewer and fewer; the number of proletarian dependents multiplies; the middle class is crushed out of existence; the rich become richer and fewer, the poor more numerous and poorer.

In this turmoil of social production, capitalistic appropriation, and anarchic distribution, there is discernible a reshaping of social potencies. The proletarian realizes the power of the state and sees how he may possess himself of that power and thereby gain control of the economic forces and reshape them to fit the needs of a better society. This will mean the appropriation of the means of production and distribution by society. Private capital will vanish; surplus values will belong to the people who created them; the people will be master and servant, capitalist and laborer.

This is the Socialistic stage of society. It will be the result of the natural evolution of human industry. Its immediate coming will be the result of a social revolution. This revolution, this social cataclysm, is written in the nature of things. Man cannot prompt it, he cannot prevent it. He can only study the trend of things and "alleviate the birth-pangs" of the new time.

Of this new time, this society of to-morrow, Marx gives us no glimpse. His function is not to prophesy, but to analyze. He is the natural historian of capital. He described the development of economic society and sought to ascertain its trend. In the first chapter of Capital he says: "Let us imagine an association of free men, working with common means of production, and putting forth, consciously, their individual powers into one social labor power. The product of this association of laborers is a social product. A portion of this product serves in turn as a means of further production. It remains social property. The rest of this product is consumed by the members of the association as a means of living. It must consequently be distributed among them. The nature of this distribution will vary according to the particular nature of the organization of production and the corresponding grade of historical development of the producers."

This is the only mention of the future made by Marx. It is a dim and uncertain ray of light cast upon a vast object.

The formulæ of this epoch-making study may be summarized as follows:

1. Labor gives value to all economic goods. The laboring class is the producing class, but it is deprived of its just share of the products of its labor by the capitalistic class, which appropriates the "surplus value."

2. This is possible because of the capitalistic method of production, wherein private capital controls the processes of production and distribution.

3. This system of private capitalism is the result of a long and laborious process of evolution, hastened precipitately by the industrial revolution.

4. This industrial age is characterized (a) by anarchy in distribution, (b) private production, (c) the gradual disappearance of the middle class, (d) the development of a two-class system—capitalist and producer, (e) the rich growing richer and the poor growing poorer.

5. This will not always continue. The producers are becoming fewer each year. Presently they will become so powerful as to be unendurable. Then society—the people—will appropriate private capital and all production and distribution will be socialized.

It is necessary to keep in mind the leading events in the life of this remarkable man in order to understand the genesis of his theories. Marx was born in Treves in 1818, of Jewish parentage. His mother was of Dutch descent, his father was German. When the lad was six years of age his parents embraced the Christian faith. His father was a lawyer, but his ancestors for over two hundred years had been rabbis. The home was one of culture, where English and French as well as German literature and art were discussed by a circle of learned and congenial friends. Marx studied at the universities of Bonn and Berlin. He took his doctorate in the law to please his father, but followed philosophy by natural bent, intending to become a university professor.

The turmoil of revolution was in the air and in his blood. There was no curbing of his fiery temperament into the routine of scholastic life. In 1842 he joined the staff of the Rhenish Gazette at Cologne, an organ of extreme radicalism. His drastic editorials prompted the police to ask him to leave the country, and he went to Paris, where he met Frederick Engels, who became his firm friend, partner of his views, and sharer of his labors. The Prussian government demanded his removal from Paris, and for a time he settled in Brussels. He returned to Germany to participate in the revolution of 1848, and in 1849 he was driven to London, where, immune from Prussian persecutions, he made his home until his death, in 1883.

In 1842 he married Jennie von Westphalen, a lady of refinement, courage, and loyalty, whose family was prominent in Prussian politics. Her brother was at one time a minister in the Prussian cabinet.

Marx was an exile practically all his life, though he never gave up his German citizenship. He never forgot this fact. He concluded his preface to the first volume of Capital, written in 1873, with a bitter allusion to the "mushroom upstarts of the new, holy Prussian German Empire." He lived a life of heroic fortitude and struggle against want and disease.

From his infancy he had been taught to take a world view, an international view, of human affairs. This gave him an immediate advantage over all other Socialist writers of that day. At Bonn he was caught in the current of heterodoxy that was then sweeping through the universities. This carried him far into the fields of materialism, whose philosophy of history he adopted and applied to the economic development of the race. He received not alone his philosophy from the "Young Hegelians," but his dialectics as well. It gave him a philosophy of evil which, blending with his bitter personal experiences, gave a melancholy bent to his reasoning, and revealed to him the misericordia of class war, the struggle of abject poverty contending with callous capital in a bloody social revolution.

There are four points which gave Marx an immense influence over the Socialistic movement. In the first place, he put the Socialistic movement on a historical basis; he made it inevitable. Think what this means, what hope and spirit it inspires in the bosom of the workingman. But he did more than this: he made the proletarian the instrument of destiny for the emancipation of the race from economic thraldom. This was to be accomplished by class war and social revolution. Marx imparts the zeal of fatalism to his Socialism when he links it to the necessities of nature. By natural law a bourgeoisie developed; by natural law it oppresses the proletarian; by natural law, by the compulsion of inexorable processes, the proletarians alone can attain their freedom. Capitalism becomes its own grave-digger. Liebknecht said in his Erfurt speech (1891): "The capitalistic state of the present begets against its will the state of the future."

In the third place, Marx gave a formula to the Socialist movement. He defined Socialism in one sentence: "The social ownership of the means of production and distribution." This was necessary. From among the vague and incoherent mass of utopian and revolutionary literature he coined the sentence that could be repeated with gusto and the flavor of scientific terminology.

And finally, he refrained from detailing the new society. He laid down no program except war, he pointed to no utopia except co-operation. This offended no one and left Socialists of all schools free to construct their own details.

The Marxian system was no sooner enunciated than it was shown to be fallible as an economic generalization; and the passing of several decades has proved that the tendencies he deemed inevitable are not taking place. The refutation of his theory of value by the Austrian economist, Adolph Menger, is by economists considered complete and final. The materialistic conception of history, which is the soul of his work, lends itself more to the passion of a virile propaganda than to a sober interpretation of the facts. Further, the two practical results that flow from the use of his theory of surplus value and his materialism—namely, the ever-increasing volume of poverty and the ever-decreasing number of capitalists—are not borne out by the facts. The number of capitalists is constantly increasing, in spite of the development of enormous trusts; the middle class is constantly being recruited from the lower class; there is no apparent realization of the two-class system. And finally, the method by revolution is being more and more discarded by Socialists, as they see that intolerable conditions are being more and more alleviated, that "man's inhumanity to man" is a constantly diminishing factor in the bitter struggle for existence.[17]

Socialism and Democracy in Europe

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