CHAPTER XIV

MARX AND SOCIALISTIC SOCIAL THOUGHT

Socialism proper had its beginning in the second and third decades of

the nineteenth century. It developed primarily in continental Europe

and in England. Although Plato’s communism and More’s utopianism were

forerunners of socialism, the social unrest in Europe in the early

years of the nineteenth century was the direct causal factor. Socialism

also represented a reaction against the prevailing _laissez faire_

thought regarding the evils of society and the suffering of the poorer

classes.

Socialism began with the concepts and experiments of Saint Simon

and Fourier in France, of Robert Owen in England, and of Rodbertus,

Lassalle, Marx, and Engels in Germany. In France the movement was

carried forward by Proudhon and Blanc; and in England by the Christian

socialists, chiefly Maurice and Kingsley. In Germany, Marx maintained

the position of leadership for many decades, and finally became the

best known exponent of socialist thought in the world.

In his _New Christianity_, Saint Simon, who was referred to in the

preceding chapter, made a unique contribution to social thought. His

thinking was not deep, or systematic, but characterized by ingenuity.

Saint Simon advocated a society in which only useful things are

produced. In this industrial order, men of science will be in control.

Saint Simon was greatly interested in the welfare of the poorest

classes. His _New Christianity_ was essentially a plea that the whole

world devote itself to the improvment of the living conditions of the

very poor. The influence which Saint Simon had upon Comte has already

been mentioned.

Another important socialistic ideal was developed by Fourier

(1772–1837), who worked out a social system in which the _phalange_

is the chief instrument in securing a perfect society. The phalange

is composed of from twenty-four to thirty-two groups of people. Each

group comprises from seven to nine individuals. The unifying bond is

natural attraction, or free elective love and sympathy. The members

of each phalange live communistically in a large commodious structure

called a _phalanstère_. The phalanges were to unite in one large world

federation, with headquarters at Constantinople.

The people work according to their interests, frequently changing

occupations. The products of labor are subdivided; a minimum goes

equally to all, irrespective of any conditioning factors; of the

remainder five-twelfths goes to labor, three-twelfths to special

ability, and four-twelfths to capital. Difficult common labor is paid

the most, on the assumption that he who does pleasant labor receives

pay in mental ways. Every individual should have an opportunity to

become a capitalist; and every woman should be enabled to become

independent economically. These utopian plans of Fourier called for a

sudden and complete transformation of human nature. They underestimated

the force of human selfishness.

Socialistic thought was carried into politics by Louis Blanc

(1811–1882). He declared that no genuine reformation of society could

take place until political machinery was organized democratically.

The democratic state would endow national workshops. These workshops

would be operated by industrial associations composed of workingmen,

who would elect their own officers, regulate their own industries, and

provide for the distribution of the returns from industry. Once started

by the state these industrial associations will expand and increase in

number until the whole nation, and then the world, will be organized in

this way.

Blanc participated in the French Revolution of 1848 and became a member

of the provisional government. His national workshop idea failed

in practice. His enemies were partly responsible for this defeat,

because the essentials of productive work and guarantees of character

which Blanc urged were disregarded. The fact, however, that these two

essentials were considered necessary for the successful development

of national workshops indicates that the system, under average

conditions, might not be a success.

Nearly all the early socialists were evolutionists rather than

revolutionists. They did not advocate class struggle theories. They

developed bourgeois rather than proletariat ideas. An outstanding

exception to these statements is found in the radical attitude of

Babeuf (1760–1797), who was essentially a forerunner of Marxian

socialism and also of the anarchistic philosophy of Proudhon and

Bakunin. Babeuf vigorously proclaimed the sovereignty of the

proletariat, and advocated the abolition of inheritance laws and

of private property. He urged that the property of corporations be

confiscated, and that a communistic state be established.

The well-known principles of justice, liberty, and equality were

utilized by Proudhon (1809–1865), a philosophic anarchist. He would

have the same wages paid to an unskilled workman as to a successful

business or professional man. He predicted that equalization of

opportunity would bring about an equalization of ability.

Proudhon attacked property rights. He declared that property is theft.

In itself property is lifeless, but it nevertheless demands rent,

interest, or profits, or all three. It protects itself behind law, and

in order to guarantee its alleged rights, it calls out the militia,

evicts families, and takes bread from the mouths of little children. It

robs labor of its just returns.[XIV-1]

By unsatisfactory reasoning Proudhon urged the free development of

individuals in society, whereby each individual would learn to govern

himself so well in society that government would no longer be needed.

This theory is Proudhon’s concept of anarchy. In this doctrine Proudhon

neglects to provide an adequate dynamic or to foresee the ultimate

complexity of human relations.

In England, Robert Owen (1771–1858) became a founder of socialism. As

a factory manager, Owen developed social ideas. Living in an age of

long hours, woman and child labor of the worst forms, and deplorable

housing conditions, Owen deserves the credit of inaugurating a

twentieth century program of welfare work. It was Owen’s theory that

the workingman is so subject to his environment that even his character

is determined for him. Owen attempted in theory and practice to

prevent the impingement of the economic environment upon the workers.

He believed in self-governing organizations of labor. He inaugurated

the co-operative movement as a means of securing industrial justice

and of giving the workingman a chance at the free development of his

personality.

Owen objected to Malthus’ doctrine of population on the ground that it

failed to consider the marvelous increase in the means of subsistence

which might come from the application of inventive genius to the

sources of the food supply. He also protested against the Malthusian

argument for the restriction of population, because this argument did

not give due weight to the unjust distribution of wealth and to the

enslaving social organization to which labor is subject.

Owen’s experiments, particularly at New Harmony, Indiana, demonstrated

that a communistic organization of society in itself cannot save

society. The strength of Owen’s social thought lay in its accentuation

of the need for providing labor with opportunities of industrial

initiative and co-operation.

During the middle of the nineteenth century in England, the Christian

socialists flourished. The founders of this movement were Frederick

Maurice and Charles Kingsley. These men were clergymen who became

greatly interested in the welfare of the working classes. They made

clear the evils of the prevailing economic order, the formality of the

Manchester school of economics, and proposed to apply the principles of

Christianity to the economic system of the day. They opposed economic

competition. For this method they urged the substitution of the ethical

and spiritual principles of co-operation and love in industrial

relationships--for both employer and employee in all their dealings

with each other. Their socialism is essentially a vigorous application

of Christian love to every-day relationships.

The influence of Christian socialism strengthened the experiment

of the Rochdale weavers who in 1844 had organized a consumers’

co-operative society. The concept of consumers’ co-operation received

its original impetus from the thought and practice of Robert Owen,

achieved a measurable degree of concreteness under the efforts of the

Rochdale weavers, and through Maurice and Kingsley won the assistance

of Christianity.

In Germany, Rodbertus, Lassalle, Marx and Engels molded the thinking of

socialists about the nature of human society. Rodbertus (1805–1875),

the son of a university professor, was a quiet, deep thinker about

social processes. According to his analysis of social development,

three stages may be pointed out. The first was marked by slavery, or

by private property in human beings. The second state is an indirect

form of the first, namely, one of private property in land and capital.

Through this type of ownership the economically fortunate or shrewd

are able to exercise widespread power over the unfortunate and the

uneducated. In the third state, toward which society is trending,

the concept of service will rule, and private property as a dominant

concept will be compelled to take a thoroughly subordinate place in

human activities. The ultimate goal, according to Rodbertus, is a world

communist society, with land and capital as national property, and with

labor rewarded according to its productiveness.[XIV-2]

Rodbertus denied the validity of the wages fund theory and argued

that wages are not paid by capital; it is that part of the productive

earnings of labor which labor receives. His fundamental thesis is

that labor is the source and measure of all value. He advocated an

evolutionary procedure whereby the state should pass legislation that

would guarantee just returns to labor. This form of state socialism is

to be gradually developed, until a scientific socialism is reached with

its emphasis upon a government of labor, for labor, and by labor.

The founder of Social Democracy in Germany, Ferdinand Lassalle

(1825–1864), wrote two significant treatises, the _Bastiat-Schulze_

and the _Working Men’s Programme_. Lassalle believed that natural

conditions are productive of misery and vice, and that it is the

chief business of the state to extricate men from this thraldom. The

state should provide means for lifting the laboring man to a level of

industrial freedom.

Lassalle objected to the theory known as the iron law of wages. He

protested against the smallness of the share of his earnings which the

laborer really receives. He advocated the establishment of productive

associations wherein labor might perform the double function of

workman and capitalist. In order that these productive associations

might be started, the state should advance funds. After the productive

associations have secured momentum they will continue by virtue of

their own strength. Ultimately, industry will be conducted exclusively

through productive associations; both industrial and social democracy

will finally rule in political life. Lassalle became the founder of

the Social Democratic party in Germany. Lassalle boldly denounced the

reactionary classes that were in political power in his time and led

the workers in a movement to overthrow the existing social order.[XIV-3]

The name of Karl Marx (1818–1883) is supreme on the list of socialists.

Marx was born in Germany of Jewish parents, and educated at the

universities of Bonn and Berlin. He became a journalist, but the paper

which he edited was considered too liberal and was suppressed. Marx

went to Paris in 1842, where he continued editorial work. At this

time he was influenced by French socialism and its leader, Proudhon.

In 1845, he was expelled from Paris at the request of the Prussian

government. He went to Brussels. In the meantime a deep friendship with

Friedrich Engels (1820–1895) had been established.

In 1847, Marx and Engels issued the Communist Manifesto.[XIV-4] This

radical document was circulated widely and became extensively accepted

by social revolutionists. Its doctrines were:

1. Abolition of property in lands; rents to be used for public purposes.

2. Abolition of all rights of inheritance.

3. Progressive income tax.

4. Nationalization of the means of transportation and commerce.

5. Extension of productive enterprises by the state.

6. Compulsory labor.

7. Free education; no child labor.

8. Elimination of the distrust between town and country.

Marx returned to Germany and established the _Neue Rheinische Zeitung_

in Cologne in 1848. Engels served as editor. Because of revolutionary

activity, Marx was forced to leave Germany in 1849. He went to Paris

and then to London, where he became a newspaper correspondent and where

he lived until his death in 1883.

In 1859, the _Kritik der politischen Oekonomie_ was published. It

contains the essential principles of Marx’s system of thought. In 1864,

Marx found the opportunity for which he had long been seeking, namely,

to organize the workers of the world into one large association. On

September 28, in St. Martin’s Hall, Marx in the presence of a vast

concourse of people, he initiated the “International Workingmen’s

Association.” The fundamental idea was to organize the societies of

workingmen which have a common purpose, namely, the emancipation of the

working classes, into a world or international union for co-operative

purposes. The International proposes that governments shall put the

interests of the working classes to the forefront of national concern,

and subordinate the present attention they give to war, diplomacy, and

national jealousies.

In 1869, Marx, aided by Karl Liebknecht (1826–1900), Engels and others,

organized in Germany the Social Democratic Labor Party. The movement

which Lassalle had started became united with the Marxian movement,

and in 1875 the German Social Democracy presented a united front to

capitalism. Marx, Engels, Liebknecht, and Bebel are its best-known

leaders. Bismarck was forced to acknowledge its power, and condescended

to inaugurate a system of social insurance in order to appease its rank

and file.

In 1867, 1885, and 1895, the three volumes of _Das Kapital_ appeared,

in chronological order.[XIV-5] By this work, _Capital_, Marx is known

throughout the world. The style is laborious; the analyses are minute

and in places difficult to follow. The method is historical. Marx

analyzes social evolution. He traces the rise of capitalism from its

humble beginnings to its autocratic fruition. In this development the

instruments of capital showed a tendency to congregate in a decreasing

number of hands. By this token it will be seen that the number of the

propertyless ever increases. Likewise, their influence decreases. In

this way, the proletariat is developed, a product of capitalism.

A definite class, the capitalist, acquires increasing industrial,

political, and social power. The proletariat suffer increasing misery.

They own nothing except their ability to labor. They are forced to

throw this human quality on the commercial market and sell it to the

highest bidder. But capitalism increases the number of the proletariat.

This tendency, together with the increase in population, creates a

superabundance of labor. Laborers are forced to compete in the labor

market. The laborers who will sell their labor for the least wages will

be employed. Capitalism thus forces wages to a mere subsistence level,

with the result that the misery and suffering of the proletariat are

greatly augmented. In this way the laborer is crushed by the operation

of the iron law of wages.

By the operation of the iron law, the capitalist is enabled to

appropriate to himself an increasing amount of the earnings of labor.

This appropriated amount is called the surplus value. Marx developed at

length the concept of surplus value. Capitalism exploits the laborer by

taking possession of as large a proportion of the earnings of labor as

it can obtain--through its might and its shrewdness.

The growth of capitalism, also, causes a class consciousness to develop

among the members of the proletariat. This class consciousness is

increasing. It produces labor organizations; these organizations are

acquiring vast power. The struggles between them and the capitalistic

classes go on. The two groups have little in common. By force of

numbers the proletariat are bound finally to win, and to overthrow the

capitalistic classes which are now in power. They will seize the means

of production and manage them for the good of all.

Marx did not outline an utopia. He described the historical evolution

of society as he saw it, and he participated in plans for the

organization of all laborers for their common good. Inasmuch as Marx

advocated compulsory labor, the laboring class under Marxian socialism

would include all people. Marx advocated an equal distribution of

wealth, not in the sense of the popular misconception of that term, but

in the sense that the earnings from the industry shall be distributed

to the workers in proportion to their achievements.

In Russia, Marxian socialism in 1918 came into power. The Bolsheviki

represent the radical wing of the Marxian followers. They established

essentially a dictatorship of the proletariat, substituting it for the

dictatorship of capitalists which existed under the reign of the czars.

Bolshevism substitutes occupation for geographic area as a basis of

representative government. This program is deficient and sociologically

untenable, because occupational groups do not encompass all phases of

human personality. A government based on occupational group needs is

representative of only a portion of the elements of human life. When

seventy-five per cent of the people are illiterate, as has been the

case in Russia, no form of government whether democratic or not can be

other than a dictatorship.

Revolutionary socialism coincides, in part, with syndicalism, a

movement which developed in France and England. Syndicalism is a

radical form of trade unionism. It declares that workingmen cannot

hope for genuine betterment through politics. They must organize and

inaugurate a general strike. This universal strike will paralyze the

present régime and render it helpless. As a result the workers will

come into power. In the meantime, the workers must keep up a running

warfare with capitalists and the government which supports capitalism.

Sabotage is a common concept among syndicalists. It implies a program

of destroying machinery, hindering the production of economic goods,

and creating inefficiency in capitalistic industry. In both England

and the United States, syndicalism has appeared. In the United States,

the Industrial Workers of the World, or I. W. W., confess to doctrines

similar to those which have been espoused in Europe under the name of

syndicalism. The philosophic exponent of syndicalism has been George

Sorel.

Revolutionary socialism has been paralleled in certain ways by

anarchism. These teachings first acquired force through the writings

of Proudhon. Another leading anarchist was the Russian nobleman and

military officer, Michael Bakunin (1814–1876). Although of aristocratic

birth, Bakunin became furious when he observed the human misery among

the masses which Russian autocracy was producing. He became an

agitator. He was confined in dungeons and exiled to Siberia. He escaped

from Siberia, and by way of California went to England and then to

Switzerland. His chief work is _God and the State_. Vital, vigorous,

magnetic, fearless--these are the adjectives which describe the

personality of Bakunin.

Bakunin scorned rank, birth, and fortune. He attacked external

authority of all kinds. He denied the validity of concepts such as

“God” and the “state”; they are parts of systems which enslave the free

will of man. Classes must be abolished and the masses of individuals

freed from all enslaving institutions, such as marriage, the church,

the state.

In a related way Prince Kropotkin (1842–1921) developed anarchistic

principles. Peter A. Kropotkin was of aristocratic Russian birth and

a person of mild, courteous manners. His father was a serf owner; the

son could not bear to see the sufferings which the serfs underwent.

He threw away the privileges of rank and became a defender of the

oppressed. He attempted to correlate the theories of anarchism

with those of mutual aid, and fought socialism with the concept of

centralized control on the ground that it would destroy individual

liberty.[XIV-6] In Chapter XXII, Kropotkin’s theory of mutual aid will

be analyzed.

Anarchism and socialism make similar attacks upon the evils of

capitalism. Both are determined to overthrow capitalism. Both believe

in revolt. They part ways when they advocate a constructive program for

the new order which shall follow the violent overthrow of capitalism.

Unlike socialism, anarchism holds that all government is an evil and

that industry can go on without organization. It advocates a free

communism.

One of the essentials in the Communist Manifesto was the appropriation

of rents for public purposes. Starting from a viewpoint distinctly

different from that of Karl Marx, Henry George (1839–1897) became the

founder of single tax propaganda. In early manhood Henry George came

to San Francisco and established a struggling newspaper. At once he

found himself practically overwhelmed by the brutal competition of the

metropolitan press and telegraphic news service. George was crushed by

monopoly. It was this defeat which gave him a new idea--an idea that

was to command the attention of the world.

As George walked the streets of New York City he puzzled over the

existence of indescribable destitution and suffering in the shadow

of the princely rich with their ostentatious luxuries.[XIV-7] Why in

a land blessed with generous natural resources should there be such

poverty? Although discovery has followed discovery and invention has

followed invention, neither has lessened the toil of those who most

need respite. With material progress poverty takes on a larger aspect.

Material progress may be likened to an immense wedge which is being

forced, not underneath society, but through society. “Those who are

above the point of separation are elevated, but those who are below are

crushed down.”[XIV-8] George set himself the task of finding out why

poverty is associated with progress.

This cause George found in the land situation. As land increases

in value, poverty increases. The price of land is an index of the

disparity in the economic conditions of the people at the extremes of

the social scale. Land is more valuable in New York City than in San

Francisco, and there is more squalor and misery in New York City than

in San Francisco. Land is more valuable in London than in New York

City, and likewise there is more squalor and destitution in London than

in New York City.

When increasing numbers of people live in a limited area under a system

of private property in land, rents are raised and land values go up.

The cost of living mounts, wages are kept to a minimum, overcongestion

of population ensues; and again, rents and land values are increased.

Upon what does title to land rest? Where did it originate? In force.

But has the first comer at a banquet the right to turn back all the

chairs, and claim that none of the other guests shall partake of the

food that has been provided? Does the first passenger who enters a

railroad car thereby possess the right to keep out all other persons,

or admit them only upon payment to him of sums of money? “We arrive

and we depart, guests at a banquet continually spread, spectators

and participants in an entertainment where there is room for all who

come.”[XIV-10] These illustrations are pertinent to the unjust elements

in the present economic order.

As a result of private property in land, the owner possesses power over

the tenant, a power which is tantamount to a system of slavery. There

is nothing strange, therefore, in the poverty phenomena of the world.

The Creator has not placed in the world the taint of injustice. The

fact that amid our highest civilization men faint and die with want,

is not because of the niggardliness of nature or the injustice of the

Creator, but is due to the injustice of man.[XIV-11] Since the owner of

land receives wealth without labor to an increasing degree, so there is

an increasing robbery of earnings of those who labor.

George attacked Malthusianism, and pointed out the deficiencies in the

proposed remedies for poverty, such as greater economy in government,

diffusion of knowledge, and improved habits of industry. He then

proceeded to give his own and well known solution, namely, making land

common property through a system of taxation of land values alone.

Since land, not labor, is the source of all wealth, it is just and

necessary to make land common property.

The weakness of Henry George’s argument lies in his single panacea

for securing justice. He over-emphasized the importance of one line

of procedure. He neglects other important factors, such as a selfish

human nature. He rendered, however, a splendid service in showing

the weaknesses in the system of private property in land. In this

connection he has been unequaled in his contribution to social thought.

In this discussion of the contributions of socialism to social thought,

many types or expressions of socialism have not been presented. The

educational propaganda of the Fabian socialists in England should be

mentioned as being very effective. Although small in number this group

of intellectuals, the best known being Sidney and Beatrice Webb, have

exerted a constructive and practical influence upon social thought.

Socialism has assumed various phases. (1) It originated in utopianism

and in a loose, broad type of communism. (2) It then took the form

of associationism, urging the organization of groups of associated

individuals, such as phalanges. As utopianism was in part the

expression of a poetic imagination, so associationism represented a

bourgeois philosophy. (3) In the next place socialism assumed political

aspirations, and advocated a governmental program whereby the existing

governments shall gradually extend their power until they exercise

control over rent-producing land and interest-producing capital. (4)

State socialism, however, was supplanted in many minds by ideas of

more radical procedure. Marxian socialism holds that a class conflict

is inevitable and that the workers must overthrow the capitalists,

together with the governments which they control. (5) To the other

radical extreme is philosophic anarchism, with its emphasis upon

the abolition of all existing governments and the establishment of

individual autonomy.

Socialism has made several contributions to social thought. (1) It has

called the attention of civilized mankind, and particularly of the

economically wealthy classes, to the needs of the weaker classes. It

has introduced humanitarian concepts into the minds of the socially

unthinking educated classes. (2) It has jolted many economic autocrats

from their thrones of power. It has thrown the spot light of publicity

upon the selfish and wicked ostentation of the hereditary leisure

classes. (3) It has held social theory to a more practical course

and to developing more immediate social solutions than it otherwise

would have achieved. (4) It has developed a power equal to that held

by individualism. It has helped to demonstrate the dualistic nature

of social evolution, that is, that there are two poles to human life

rather than one.

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