III. HISTORY AND ECONOMICS

A new interest: Marxism--Historical materialism--Criticism and

interpretation: a new historical canon--Marxian economics as an

application of the hypothetic method--The concepts of science and the

economic principle--Science and practice--Marxism and morality.

In April, 1895, his old professor at the University of Rome, Antonio

Labriola, sent to Croce an essay on the _Communist Manifesto,_ in which

he submitted to a critical examination the materialistic conception of

history elaborated during the fifty preceding years by Karl Marx and

Friedrich Engels. Labriola had been probably the first professor in a

European University to take Historical Materialism as a subject

for his academic lectures, his first course on Marxism having been

delivered in 1889. But Croce, who had given all his thoughts first to

his literary work, and then to his meditations on art and criticism,

had not been as yet able to perceive the bearing of the new problems

discussed by his master on that problem of the nature of history which

had been the subject of his first philosophical essay, and was to be

the centre of his later speculations. Labriola's little book came to

him at a moment when he had reached an impasse in the course of his

research, and it opened to him an entirely new field of investigations,

it afforded him an escape towards studies and meditations, at

first apparently unrelated to his former ones, but the results of

which were destined to react vigorously on them. He plunged with

youthful enthusiasm into the literature not of Marxism and historical

materialism only, but of Economics in general. In the five following

years, while he continued with unremitting energy his literary labours,

now more clearly directed towards an understanding of the historical

problems of Æsthetics, and a clarification of the concepts of a

philosophical science of Æsthetics, he published a series of critical

essays on _Materialismo storico ed economia marxistica,_ intended at

the same time as a defence and a rectification of Marx's doctrines.

We shall consider this phase of Croce's work from two distinct points

of view--as a new individual experience, and as a stage in the

development of his philosophy. For the first of them, we shall again

leave the word to Croce himself: "That intercourse with the literature

of Marxism, and the eagerness with which for some time I followed the

socialistic press of Germany and Italy, stirred my whole being, and

for the first time awakened in me a feeling of political enthusiasm,

yielding a strange taste of newness to me: I was like a man who having

fallen in love for the first time when no longer young, should observe

in himself the mysterious process of the new passion. At that fire

I burnt also my abstract moralism, and I learnt that the course of

history has a right to drag and to crush the individual. As I had not

been disposed in my family circle to any fanaticism, and not even to a

liking for the current and conventional liberalism of Italian politics

... it seemed to me to breathe faith and hope in the vision of the

rebirth of mankind redeemed by labour and in labour."[1] This political

enthusiasm did not last very long: it disappeared when that which

was Croce's true nature, not practical but essentially theoretical,

reasserted itself, by reducing this new experience into new conceptual

forms; but without it, the whole of his philosophy of the practical

activity would forever have been like a theory of vision in the mind of

a blind man, or a theory of love in that of a keeper of the harem. Art,

thought, mortality, had already appeared to him as aspects of his own

life; to these, a new element was added now, not as a mere object of

thought, but as a passionate and concrete experience.

The interpretation of the doctrine of historical materialism presented

a number of difficulties deriving partly from the form in which the

doctrine itself had originally appeared--not as a coherent theory,

but as a series of pronouncements and observations scattered in a

variety of writings, composed at a distance of years, and the aim of

which was rather political and polemical than scientific; and partly

from its association with remnants of old metaphysics, both in its

originators and in their followers. In Marx and Engels, as well as

practically in the whole literature of Marxism, the emphasis being

laid on the substantive rather than on the adjective, historical

materialism implied the adhesion to that metaphysical materialism which

was one of the children of Hegelian metaphysics. What had been the

Idea for Hegel, was the Economy of the new metaphysicians: the only

reality, working beneath the surface of human consciousness, as an

under-structure beneath a merely apparent and illusory superstructure.

Given this conception, it is easy to understand why historical

materialism appealed so strongly to positivists and evolutionists,

who concealed a similar kind of metaphysics under their proclaimed

contempt for philosophy. The old philosophies of history had attempted

to reduce the sequence of history to a scheme of concepts, starting

with God, or Providence, or the Hegelian Idea: the new unconscious

metaphysicians substituted for the old concepts that of Economy,

or of Matter, or of Development and Evolution, from which all the

particular historical determinations could be deduced with not less

certainty than from the old metaphysical entities. And from their

predecessors they also borrowed those teleological tendencies which

are implicit in all metaphysics, attributing a will and an end to

their new God, be it called Progress or Matter, and trying to deduce

the future course of history from the dialectic of the past. Hence the

growth of a vast literature inquiring into the development of abstract

sociological schemes or of economic forms reduced to characteristics

of economic epochs, forcing the concrete materials of history into

rigid conceptual frames; hence the naïve faith in the deduction of

social predeterminations, of which the most striking was the asserted

necessity of the advent of socialism as the only logical outcome of

capitalist society.

Croce, pursuing the analysis initiated by Labriola, began by

dissociating what seemed to him to be the vital element in historical

materialism, from any intrusion of either Hegelian or positivistic

metaphysics. His criticism of historical materialism as a philosophy

of history and, generally, of the possibility of constructing

any philosophy of history, is the first resolute step towards an

anti-metaphysical conception of philosophy. Whether by metaphysics

is meant the knowledge of another world of real essences, of things

in themselves, beyond the objects of our immediate experience,

or the creation of abstract concepts duplicating and falsifying

the complex world of life, the whole trend of Croce's thought

will henceforward oppose any claim on the part of these spurious

philosophies, mythological or pseudo-scientific, to furnish an adequate

interpretation of reality. Vico's metaphysics of human ideas, which

is no metaphysics at all, because it does not postulate the existence

of any reality beyond that of the spirit of man, will more and more

become the model of Croce's own philosophy. That immanentism which

he considers as one of the spontaneous attitudes of his mind slowly

extricates itself from the ruins of his own transcendental logic,

and shows itself impervious to the allurements of both Platonism and

Positivism, of the ancient and the new myth.

Purged of its unessential philosophical associations, historical

materialism (or, more precisely, the economic interpretation of

history) appeared to Croce as nothing more than a new canon or

criterion of historical interpretation, fixing the attention of the

historian on a mass of new data, the importance of which had not been

recognized before. It was neither a new philosophy nor a new method:

it could not be legitimately employed to draw conclusions on the

relations between economic facts and the other facts of history, nor

to reduce history itself to the operation of a few abstract laws. It

was a tendency of historical thought, coinciding with the manifestation

of certain objective conditions of society (the industrial revolution)

and their reflexes in political thought, by which the economic element

in social facts acquired a stronger relief than it had ever had in the

consciousness of man. And it seemed to point, both for the historian

and for the philosopher, towards the existence of a fundamental

principle or form of human activity--economic activity, about the

nature of which, and its relation with æsthetic, logic, and moral

activity, very little had been thought and written, besides what is

contained in the introductions to all classical manuals of political

economy. While still insisting that history is art, that is, the

representation of individual happenings, Croce was thus implicitly

brought to admit of the importance of philosophy, that is, of the study

of the fundamental forms or categories of human activity, for the

historian. His conception of history was undergoing a transformation in

a direction similar to that towards which his conception of philosophy

was moving.

When he passed from the consideration of the general theory to the

examination of more technical aspects of Marx's doctrines, the first

difficulty which presented itself to him was that of the relations

between Marxian economics and pure economics, or general economic

science. The society whose economic life Marx had studied in _Das

Kapital,_ was neither human society in general, nor any particular

historical society, but a purely ideal and formal society deduced from

a proposition assumed outside the fields of pure economics: that of

the equivalence of value and labour. Starting from this postulate,

Marx had proceeded to inquire into those processes of differentiation

between the assumed standard and the actual prices of commodities in a

capitalist society, by which labour itself acquires a price and becomes

a commodity. It was a method of scientific analysis consisting in

regarding a phenomenon not as it actually exists, but as it would be

if one of its factors were altered, and in comparing the hypothetical

with the real phenomenon, conceiving of the first as diverging from

the second which is postulated as fundamental, or the second as

diverging from the first, which is postulated in the same manner.

It is only when the whole of Marxian economics is considered as the

application of such a method, that the concepts of labour-value and of

surplus-value acquire a definite and precise meaning: the description

of economic society as a pure working society (producing no goods which

cannot be increased by labour) must then be interpreted as a concept

of difference, or an instrument of elliptical comparison, as against

the descriptions of actual economic society given by pure economics.

Its positive value, not as an abstract hypothesis, but as a means

of knowledge, depends on the fact that such a society does actually

coincide with certain aspects of historical capitalist society; that

the equivalence of labour and value is not a purely imaginary fact, but

a fact among other facts, empirically opposed, limited, and distorted

by other facts. Having assumed this equivalence as a test for the study

of the social problem of labour, Marx's object was to show the special

way in which this problem is solved in a capitalist society. And this

was the real justification for his employment of the hypothetical

method.

It is clear that Croce was infinitely more interested in what Marx

had actually accomplished, than in what he had intended to do. In

Marx's own mind, the analysis of the conditions of capitalist society

led inevitably to the conclusion that a passage from capitalism to

socialism was predetermined by the structure of capitalist society

itself. It is well known that the prevision assumed what claimed to be

a strictly scientific character in the formulation of the law of the

fall in the rate of profits: the gradual decrease of surplus-values

accompanying the increase in technical improvements, and automatically

re-establishing the equivalence of labour and value. Croce offered

a very convincing criticism of this law on Marx's own grounds, by

showing that it rested on a confusion between technical and economic

facts, thus affording a remarkable example of Marx's uncertainty of his

own method. It was clear that in this particular case Marx had been

carried away by his desire to reduce the metaphysical implications of

his economic sociology to the status of an historical law. And Croce's

criticism was evidently intended both to deprive Marx's historical

determinism of one of its most powerful instruments, and to confirm

his own view of the method which gave validity and importance to such

economic speculations as Marx's were.

Marxian economics stood thus interpreted as comparative sociological

economics, and by the definition Croce also defined the scope of

sociological science, and the nature of the logical processes which

it could legitimately employ. It was a considerable advance in the

study of scientific concepts, as distinct from purely speculative

concepts. But he still believed at the time, misled by the economists'

discussions on the nature of the economic principle, that pure

economics and the philosophy of economics practically coincided; and

as he had maintained the legitimacy of Marx's method against the

criticisms of the pure, or scientific, economists, he defended pure

economics against Marx and his school, as the general science of the

economic datum. But he was soon to understand that his own point

of view and that of the pure economists were widely divergent, and

that the methods of pure economics are in fact scientific and not

philosophical. In later years, when he came to regard the science of

economics as an empirical and mathematical science, Marxian economics

appeared to him merely as a special branch of economic casuistry,

employing methods fundamentally identical with those of pure economics:

a relationship which could be illustrated by a comparison with the

parallel of non-Euclidean and classical geometry. Although he did

not reach this final position at the time, there is no doubt that

his experience of the actual scientific processes of economics freed

him from his allegiance to Herbartian logic, in which science and

philosophy were still formally undifferentiated, and led him gradually

to the distinction between the scientific and the speculative concept,

of which the relation established between Marxian and pure economics is

a tentative prefiguration.

But the most essential gain of his economic studies was in the

direction of the affirmation of the merely practical, or economic,

principle, as one of the irreducible forms of human activity, raising

the concept of the Useful to the same level (logically speaking) at

which those of the Beautiful, the True, and the Good had been kept by

the whole European philosophical tradition since Plato. He was here

actually elaborating not a scientific, but a speculative concept,

though his approach to it was always by means of the discussion

of particular problems, the solution of which implied a definite

view of the relations between the economic principle on one side,

and respectively on the other side, the intellectual and the moral

principle.

As regards the possibility of inferring practical programmes from

scientific principles, he objected that neither the desirable nor

the practicable are science. Science may be a legitimate means of

simplifying problems, making it possible to distinguish in them what

can be scientifically ascertained from what can only be partially

known; in the case of the Marxian law of the fall in the rate of

profits, for instance, if such a law were proved to be scientifically

correct, it could be said, under certain conditions that the end

of capitalist society was a scientific certainty, though it would

remain doubtful what would follow it. But logic is not life, and the

appraisement of social programmes is a matter of empirical observations

and of practical convictions. The unconquerable indetermination of

social facts brings forth that element of dating in the actions of

practical men, which is to will what inspiration is to expression,

insight to intellect, in the poet and in the scientist.

Socialism could not be called a scientific programme, except in a

limited and metaphorical sense, which was not a criticism of socialism

itself, but of the bad logic of certain Socialists: the Marxian

programme as such, Croce recognized as one of the noblest and boldest,

and also one of those which obtain the greatest support from the

objective conditions of existing society. Having already denied the

dependence of intellectual truth on economic fact, by criticising

the metaphysics of historical materialism, he thus asserted now the

autonomy of the economic from the logical principle.

On the other hand, he destroyed the legend of the intrinsic immorality

of Marxism, which was due to Marx's repeated assertions that the social

question is not a moral question, and to his sharp criticisms of class

ideals and hypocrisies. He pointed to the moral interest which had

guided Marx's political activity, and which could even be said to have

prompted the choice of the fundamental hypotheses of his economics.

What Marx had called the impotence of morality was the futile attempt

at apportioning praise or blame for the natural conditions of the

social order. It is only when such conditions are no longer conceived

as necessary for the social order in general, but only for a stage

in its history, and when new conditions appear that make it possible

to destroy them, that moral condemnation is justified and effective:

to use another of Marx's phrases, morality condemns what history has

already condemned. This is as much as saying that the only real

moral problems, as all other problems of human life, are those that

present themselves under given historical circumstances, at a given

time; concrete, not abstract; and that moral judgments apply not to

facts or conditions, but to actions. The passage from such a concrete,

or historical, view of morality, to a doctrine of moral relativity

is a very easy one, but Marx's own views on this point, which he

never deliberately expounded, are irrelevant to the substance of his

doctrine. For his own part, Croce reasserted the value of Kantian

ethics, and the absoluteness of the moral ideal, as an ideal which

is not above and outside the spirit of man, but rather one of its

intrinsic forms or categories. And Marx's conclusions in regard to the

function of morality in the social movement, and to the method for the

education of the proletariat, though clashing with current prejudices,

contain no contradiction of general ethical principles. But Marx's

interest was not essentially an ethical one: the moralistic criticisms

of Marx were similar to the puritanic criticisms of Machiavelli, and

resolved themselves into a charge that neither the one nor the other

had treated problems totally different from those which they had

actually attempted to clarify. While vindicating the importance of

Machiavelli in the history of the study of the economic activity of

man, Croce called Marx himself the Machiavelli of the labour movement,

implicitly suggesting a similarity of both object and method between

_Il Principe_ and _Das Kapital,_ which is singularly illuminating.

The last essays of the book on _Materialismo Storico_ are two letters

to Professor Pareto "On the Economic Principle," written in 1900; but

with these we reach a time when Croce's thought was already organizing

itself in the system of the philosophy of mind. In them we find a

sketch of the system in the form in which it appeared in the first

edition of the _Estetica_: that is, we already decidedly enter into the

maturer phase of Croce's thought. We must here pause on the threshold,

and looking back on the years of Croce's special interest in economic

problems, sum up the new elements that the study of these problems adds

to his intellectual physiognomy: a more deliberately anti-metaphysical

attitude, a growing consciousness of the complexity of history and of

the concreteness of moral life, a realization of the function of the

economic activity, a progress in the analysis of scientific concepts,

and therefore in the foundations of his logic--but, most important of

all, a continued practice of philosophical thought under the shape of

historical methodology. Apart from their interest as documents of the

growth of his philosophy, Croce's studies have also a place in the

history of social and economic thought, side by side with those of

Labriola and of Georges Sorel, as a significant episode in that Latin

crisis of Marxism, the ultimate outcome of which are the theories of

French and Italian Syndicalism.

[Footnote 1: _Contributo,_ p. 36-37.]

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