The classification of the various groups of society, or the division

of human society into classes, is as logical a process, that is, a

result attained by the operations of reason, as the division of

animals, plants, and minerals into various classes. A specific group

of social beings, which bear the stamp of common characteristics, is

put in a certain class by social science. This classification cannot

be made by purely empirical methods of immediate sensuous perceptions.

It cannot be determined from the appearance of modern men, whether

they are capitalists or workers. We must look for certain

scientifically established features which determine the social

classification of men. As we have just seen, Marx held economic facts

to be fundamental, and he contended that the economic characteristics

were valid for purposes of classification. In his view, the manner in

which a specific human group obtained its sustenance was the chief

characteristic. Men whose chief means of life are wages form the

working class. Men whose most important source of livelihood is the

ownership of capital (land, buildings, workshops, and raw material)

form the capitalist class. It is of little moment that a worker owns a

savings-bankbook, and draws interest or dividends from a co-operative

society, or that a capitalist personally supervises his undertaking,

or organises his business, so that his profits partly consist in wages

of superintendence or salary. The outstanding feature is that the

chief interest of the worker is concentrated on wages, whilst that of

the capitalist is directed on property. It goes without saying that

the social classes are not completely homogeneous. Like botanical and

zoological classes, they may be divided into kinds and species; the

working classes include well-paid hand and brain workers, as well as

sweated sections; but all the subdivisions of the social classes

possess the common outstanding quality of the same source of

livelihood, which is either personal labour or the possession of

capital. One class disposes only of labour-power, while the other

class owns the means of production.

Between these two classes, says Marx, there are deep-seated,

unbridgeable antagonisms, which lead to a class struggle. The

antagonisms are primarily of an economic nature. The wage-earners, as

the owners of labour power, are constrained to sell this as dear as

possible, i.e., to obtain the highest possible wages, whereas the

owners of capital endeavour to buy such labour-power as cheap as

possible, i.e., to pay the least possible wages. This antagonism is

indeed fundamental, but, at first sight, does not touch the

intellectual sphere very deeply. On the surface, this antagonism is

only one as between buyer and seller, but in reality the distinction

is very great, as the seller of labour-power will quickly starve if he

does not market his commodity. The owner of the means of production is

therefore in a position to cause the seller of labour-power to starve,

if the latter does not accept the conditions which the capitalist

imposes. Ownership of capital reveals itself as a power that can

oppress the owner of labour-power.

This antagonism leads to the formation of Trade Unions. It is also the

prime cause of the class struggle, but mere trade unionism is but its

incipient stage. It develops into a class struggle when the workers

recognise that their condition of subjection is not a temporary state,

but the result of the economic system of private capitalism, that the

subjection will last so long as this economic system exists, and that

the latter could be replaced by an economic order in which the means

of production belong to all the members of society. The wage-workers

only participate in the class struggle when they learn to think in a

Socialist sense, when hostility to the existing social order develops

out of the sporadic and unrelated wage struggle and actions of Trade

Unions, and when the proletariat, as an organised class, turns from

the preoccupations of the present to the tasks of the future, and

strives to change the basis of society from private property to common

property. The workers then become aware that there can be neither

freedom nor equality for them in the existing society, and that their

emancipation can only be attained through Socialism. The class

struggle may, however, stop short at the recognition of these facts.

The dialectical movement will be incomplete if the working class does

not take its fate into its own hands, and is not convinced that it has

the power to achieve its own emancipation, and therefore contents

itself with small social reforms, or relies on noble-minded and

benevolent men and heroic redeemers. This was actually the case in the

beginnings of the Socialist movement, when the workers saw in

Socialism the only way out, but were still too weak to take their fate

into their own hands. This was the period which Marx called Utopian,

when outstanding personalities spread Socialist ideas, and made

Socialist plans and experiments to free the labouring masses. As these

personalities knew the impotence of the masses, they turned to

philanthropists and humane rulers, and sought to convince them that

reason, justice, and the general welfare demanded that Socialism

should be introduced, and poverty, misery, and their consequences

abolished. This period of Utopian Socialism gave way before the

further development of industry, the progress of machine technique,

the centralisation and concentration of the means of production and

exchange, which brought with it an increase in the number, strength,

organisation, and class-consciousness of the working classes. It is

the centralisation of the means of production and exchange, in

particular, which renders it possible for the working class, by

paralysing industry and power stations, to cause the whole of society

to feel that living labour-power forms the soul of the economic life.

At the same time Socialist investigators appear, who not only show the

reasonableness and justice of Socialism, but exhibit the proof that

the new economic order of Socialism is being prepared in the womb of

Capitalism, and that therefore the aspirations of the worker are in

harmony with the course of social development.

In this wise, a science and an aspiring Socialist movement founded

upon reality develops from Utopian Socialism, and, conscious of class,

of power, and of aim, enters upon the decisive struggle with the

capitalist economic order. The class struggle acts as a lever of

social revolution.

The original antagonism of the worker and capitalist over wages and

hours of labour becomes am impassionate struggle of two classes over

the question of the maintenance or transformation of the social and

economic system--one of which classes fights for the existing order of

private property and the other for the coming Socialistic system.

Great social class struggles inevitably become political struggles.

The immediate object of the struggle is the possession of the power of

the State, with the aid of which the capitalist class endeavours to

maintain its position, whilst the working class aims at the conquest

of the power of the State in order to accomplish its larger objects.

The following chapter will show the direction taken by the Labour

movement. Here we will but briefly refer to the profound influence of

Marx's doctrine of the class struggle as exercised in political

thought. Prior to Marx, political thought and the struggles of

political parties seemed to revolve around ideas and great

personalities. Idealogy and hero-worship were prevalent. Now,

political thought, consciously or unconsciously, proceeds along class

and economic lines. This is equally true of historical investigations.

These new political and historical orientations are largely the result

of Marx's life-work.

Rigidly conceived and applied, the Marxian doctrine of the

class-struggle may lead to ultra-revolutionary tactics of the

Socialist and Labour movement, to the system of Workers' Councils, and

Proletarian Dictatorship. If the emerging class and its struggle

constitutes the lever of social revolution and the impulse of the

dialectical social process, the Dictatorship of the Proletariat is

justified, and in any case, democracy, which includes both the

capitalist and working class, cannot be the State form during the

transition period from private property to Socialism. Considered from

the economic standpoint, political democracy is generally impossible,

or only sham democracy so long as economic inequality exists. The

Communist Manifesto does not contain a single political democratic

reform. The conclusion can be drawn from Marx's idea, as a whole, that

in his estimation, the class stood higher than so-called democracy.

This is one of the sources of Bolshevism.

III. THE ROLE OF THE LABOUR MOVEMENT AND THE PROLETARIAN DICTATORSHIP.

The Labour Party is the political expression of the whole Trade Union

movement so far as the latter formulates national demands, directed

towards the State and society generally. The Labour Party will

function the more effectively, and be able to accomplish its allotted

task, as its foundation--the Trade Union movement--becomes established

and strengthened, and the more comprehensive will be its effects. The

Trade Unions are not merely to be satisfied with the work of the

present, but are to become the focus and centre of gravity of the

proletarian aspirations which arise out of the social transformation

process, and are to work for the abolition of Capitalism. The most

effective lever for the achievement of this object is the conquest of

political power. With its aid the proletariat can consciously carry

out the transformation of a Capitalist into a Communist society. To

this transformation, there also corresponds a political transition

period, the state of which can be nothing else than a revolutionary

Dictatorship of the Proletariat.--(Marx, Letter to the German Social

Democracy, 1875, on their Gotha Programme.)

Marx considered himself to be the real author of the idea of the

Dictatorship of the Proletariat. In a letter written by him, in 1852,

to his American friend, Weydemeyer, he declares:

"As far as I am concerned, I can't claim to have discovered the

existence of classes in modern society or their strife against

one another. Middle-class historians long ago described the

evolution of the class struggles, and political economists

showed the economic physiology of the classes. I have added as a

new contribution the following propositions: (1) that the

existence of classes is bound up with certain phases of material

production; (2) that the class struggle leads necessarily to the

Dictatorship of the Proletariat; (3) that this dictatorship is

but the transition to the abolition of all classes and to the

creation of a society of free and equal."--("Neue Zeit," Vol.

XXV., second part, p. 164.)

With the exception of the year 1870, Marx remained true to his

doctrine of Proletarian Dictatorship: he thought in 1875 as he did in

1847, when he sketched the groundwork of the Proletarian Dictatorship

in the Communist Manifesto:

"The first step in the revolution by the working class is to

raise the proletariat to the position of ruling class, to win

the battle of democracy.

"The proletariat will use its political supremacy to wrest, by

degrees, all capital from the bourgeoisie, to centralise all

instruments of production in the hands of the State, i.e., of

the proletariat organised as the ruling class; and to increase

the total of productive forces as rapidly as possible.

"Of course, in the beginning, this cannot be effected except by

means of despotic inroads on the rights of property, and on the

conditions of bourgeois production; by means of measures,

therefore, which appear economically insufficient and untenable,

but which, in the course of the movement, outstrip themselves,

necessitate further inroads upon the old social order, and are

unavoidable as a means of entirely revolutionising the mode of

production."

But suppose that it is not the revolutionary working class which first

attains to power in the revolution, but the democracy of the lower

middle class and the social reformists. In this case, Marx gives the

following advice: "Separate from it, and fight it." In the address to

the League of Communists in 1850 he said:

"It may be taken for granted that in the bloody conflicts that

are coming, as in the case of previous ones, the courage,

resolution, and sacrifice of the workers will be the chief

factor in the attainment of victory. As hitherto, so in this

struggle, the mass of the lower middle class will maintain an

attitude of delay, irresolution, and inactivity as long as

possible, in order that, as soon as victory is assured, to

arrogate it to themselves and call on the workers to remain

quiet, return to work, avoid so-called excesses, and to exclude

the proletariat from the fruits of victory. It is not in the

power of the workers to hinder the lower middle classes from

doing this, but it is within their power to render their success

over the armed proletariat very difficult, to dictate to them

such conditions that from the beginning the rule of the

middle-class democrats is doomed to failure, and its later

substitution by the rule of the proletariat is considerably

facilitated.

"The workers must, during the conflict and immediately

afterwards, as much as ever possible, oppose the compromises of

the middle class, and compel the democrats to execute their

present terrorist threats. They must aim at preventing the

subsiding of the revolutionary excitement immediately after the

victory. On the contrary, they must endeavour to maintain it as

long as possible.

"Far from opposing so-called excesses, and making examples of

hated individuals or public buildings to which hateful

remembrances are attached, by sacrificing them to the popular

rage, such examples must not only be tolerated, but their

direction must even be taken in hand. During the struggle and

after the struggle, the workers must seize every opportunity to

present their own demands side by side with those of the

middle-class democrats. The workers must demand guarantees as

soon as the middle-class democrats propose to take the

government in hand. If necessary, these guarantees must be

exacted, and the new rulers must be compelled to make every

possible promise and concession, which is the surest way to

compromise them. The workers must size up the conditions in a

cool and dispassionate fashion, and manifest open distrust of

the new Government, in order to quench, as much as possible, the

ardour for the new order of things and the elation which follows

every successful street fight. Against the new official

Government, they must set up a revolutionary workers'

government, either in the form of local committees, communal

councils, or workers' clubs or workers' committees, so that the

democratic middle-class government not only immediately loses

its support amongst the working classes, but from the

commencement finds itself supervised and threatened by a

jurisdiction, behind which stands the entire mass of the working

class. In a word: from the first moment of victory the workers

must no longer level their distrust against the defeated

reactionary party, but direct it against their former allies,

who would seek to exploit the common victory for their own ends.

The workers must be armed and organised to enable them to

threaten energetic opposition to this party, whose treason to

the workers will commence in the first hour of victory. The

arming of the whole proletariat with rifles and ammunition must

be carried out at once, and steps taken to prevent the reviving

of the old militia, which would be directed against the workers.

But should this not be successful, the workers must endeavour to

organise themselves as an independent guard, choosing their own

chief and general staff, with orders to support not the State

power, but the councils formed by the workers. Where workers are

employed in State service, they must arm and organise in a

special corps, with a chief chosen by themselves, or form a part

of the Proletarian Guard. Under no pretext must they give up

their arms and equipment, and any attempt at disarmament must

be forcibly resisted. Destruction of the influence of the

middle-class democrats over the workers, immediate independent

and armed organisation of the workers, and the imposition of the

most irksome and compromising conditions possible upon the rule

of the bourgeois democracy, which is for the time

unavoidable.... We have noted that the Democrats come to power

in the next phase of the movement, and how they will be obliged

to impose measures of a more or less Socialistic nature. It will

be asked what contrary measures should be proposed by the

workers. Naturally, in the beginning of the movement the workers

cannot propose actual Communist measures, but they can (1)

compel the Democrats to attack the old social order from as many

sides as possible, disturb its regular course, and compromise

themselves, and concentrate in the hands of the State as much as

possible of the productive forces, means of transport,

factories, railways, etc. (2) When the Democrats propose

measures which are not revolutionary, but merely reformist, the

workers must press them to the point of turning such measures

into direct attacks on private property; thus, for example, if

the small middle class propose to purchase the railways and

factories the workers must demand that such railways and

factories, being the property of the reactionaries, shall be

simply confiscated by the State, without compensation. If the

Democrats propose a proportional tax, the workers must demand a

progressive tax; if the Democrats themselves declare for a

moderate progressive tax, the workers must insist on a tax so

steeply graduated as to cause the collapse of large fortunes; if

the Democrats demand the regulation of the State debt, the

workers must demand State bankruptcy. Thus the demands of the

workers must everywhere be directed against the concessions and

measures of the Democrats.... Further, the Democrats will either

work directly for a Federal Republic, or, at least, if they

cannot avoid the Republic one and indivisible, will seek to

paralyse it by granting the greatest possible independence to

the municipalities and provinces. The workers must set

themselves against this plan, not only to secure the one and

indivisible German Republic, but to concentrate as much power as

possible in the hands of the State. They need not be misled by

democratic platitudes about the freedom of the Communes,

self-determination, etc. Their battle-cry must be 'the

revolution in permanence.'"

This Address of Marx, written in 1850, appears to be the guide of the

Bolsheviks and Spartacists.

The working classes may, however, not expect their immediate

emancipation from their political victory.

"In order to work out their own emancipation, and with it that

higher form of life which present-day society inevitably

opposes, the protracted struggle must pass through a whole

series of historical processes, in the course of which men and

circumstances alike will be changed. They have no ideal to

realise; they have only to set free the elements of the new

society, which have already developed in the womb of the

collapsing bourgeois society."--(Marx, "Civil War in France.")

The means of production will gradually be socialised, production will

be placed on a co-operative basis, education will be combined with

productive work, in order to transform the members of society into

producers. So long as the transition period lasts the Communist

maxim, "From each according to his capacity, to each according to his

needs," cannot become operative. For this period is in every

respect--economic, social, and intellectual--still tainted with the

marks of the old society, and "rights cannot transcend the economic

structure of society, and the cultural development which it

determines."--(Criticism of Gotha Program.) To each will be given

according to his deeds.

"Accordingly the individual producer will receive back what he gives

to society, after deductions for government, education, and other

social charges. He will give society his individual quota of labour.

For example: the social working day consists in the sum total of

individual working days; the individual labour time of the individual

producer is the part of the social working day which he contributes;

his share thereof. He will receive from society a certificate that he

has performed so much work (after deducting his work for social

funds), and with this certificate he will draw from the social

provision of articles of consumption as much as a similar quantity of

labour costs. The same quantity of labour as he will give to society

in one form he will receive back in another.... The right of producers

will be proportionate to the work they will perform: the equality will

consist in the application of the same measure: labour."

Because performances will vary in accordance with unequal gifts and

degrees of diligence, an unequal distribution will actually take place

during the transition period. Only in a fully developed Communistic

society, after the distinction between intellectual and physical

labour has disappeared, when productive activity has become a first

need of life, when the all-round development of the individual and

the productive forces has been achieved, and all the springs of

co-operative riches flow abundantly; only then can the narrow

middle-class idea of rights be improved on, and the Communist

principle of equality be put into operation.

Marx, who reasoned on strictly economic lines, and placed the

emancipation of the working class as the highest goal, to which all

other political and economic movements are subordinated, did not

mistake the economic, political, and historical role of the nation:

this is shown by the Communist Manifesto, where the creation of the

national State by the bourgeoisie is indicated. He mocked at the young

enthusiasts who thought they could brush aside the nation as an

obsolete prejudice, but, in spite of this, he considerably

under-estimated the unifying force of national feeling, considered

from a biological and cultural point of view. He divided civilised

mankind into antagonistic classes, and assumed that the economic

dividing lines would prove to be more effective than national and

political boundary lines. He was, therefore, through and through

international. Marx demanded that the national Labour Parties should

act internationally as soon as there was a possibility of the collapse

of the capitalist domination. He reproached the original Gotha program

with the fact that "it borrowed from middle-class Leagues of Peace and

Freedom the phrase of the international brotherhood of peoples,

whereas it was necessary to promote the international combination of

the working classes in a common struggle against the ruling classes

and their Governments." Marx had no confidence in the pacifism of the

bourgeoisie.

IV. OUTLINES OF THE ECONOMIC DOCTRINES.

1. _Capital._

As we already know, Marx became a Socialist in the year 1843. As a

believer in dialectics, he knew that Socialism can only be understood

by a knowledge of the movement operating in middle-class society and

its developing forces. His investigations in 1843-4 led to the result

that political economy forms the basis of bourgeois society.

Henceforth political economy became the chief department of his

studies. His comprehensive studies of French and English economists,

especially Sismondi and Ricardo, and the anti-capitalist literature of

England of the years 1820-40, which were connected with the Ricardian

theory of value, furnished him with a wealth of suggestions and

materials for the criticism of political economy, for the source and

origin and development and decline of capitalism, written from the

standpoint of the working class and the coming Socialistic society.

Such a work is "Capital." It consists of three volumes. Only the first

volume (1867) was carried through the press by Marx himself. The other

two volumes he only sketched, and they were completed and published by

Engels after Marx's death.

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