Chapter II: Capitalism and the Wage System

I

The world is full of preventible evils which most men would be glad to

see prevented.

Nevertheless, these evils persist, and nothing effective is done

toward abolishing them.

This paradox produces astonishment in inexperienced reformers, and too

often produces disillusionment in those who have come to know the

difficulty of changing human institutions.

War is recognized as an evil by an immense majority in every civilized

country; but this recognition does not prevent war.

The unjust distribution of wealth must be obviously an evil to those

who are not prosperous, and they are nine tenths of the population.

Nevertheless it continues unabated.

The tyranny of the holders of power is a source of needless suffering

and misfortune to very large sections of mankind; but power remains in

few hands, and tends, if anything, to grow more concentrated.

I wish first to study the evils of our present institutions, and the

causes of the very limited success of reformers in the past, and then

to suggest reasons for the hope of a more lasting and permanent

success in the near future.

The war has come as a challenge to all who desire a better world. The

system which cannot save mankind from such an appalling disaster is at

fault somewhere, and cannot be amended in any lasting way unless the

danger of great wars in the future can be made very small.

But war is only the final flower of an evil tree. Even in times of

peace, most men live lives of monotonous labor, most women are

condemned to a drudgery which almost kills the possibility of

happiness before youth is past, most children are allowed to grow up

in ignorance of all that would enlarge their thoughts or stimulate

their imagination. The few who are more fortunate are rendered

illiberal by their unjust privileges, and oppressive through fear of

the awakening indignation of the masses. From the highest to the

lowest, almost all men are absorbed in the economic struggle: the

struggle to acquire what is their due or to retain what is not their

due. Material possessions, in fact or in desire, dominate our

outlook, usually to the exclusion of all generous and creative

impulses. Possessiveness--the passion to have and to hold--is the

ultimate source of war, and the foundation of all the ills from which

the political world is suffering. Only by diminishing the strength of

this passion and its hold upon our daily lives can new institutions

bring permanent benefit to mankind.

Institutions which will diminish the sway of greed are possible, but

only through a complete reconstruction of our whole economic system.

Capitalism and the wage system must be abolished; they are twin

monsters which are eating up the life of the world. In place of them

we need a system which will hold in cheek men's predatory impulses,

and will diminish the economic injustice that allows some to be rich

in idleness while others are poor in spite of unremitting labor; but

above all we need a system which will destroy the tyranny of the

employer, by making men at the same time secure against destitution

and able to find scope for individual initiative in the control of the

industry by which they live. A better system can do all these things,

and can be established by the democracy whenever it grows weary of

enduring evils which there is no reason to endure.

We may distinguish four purposes at which an economic system may aim:

first, it may aim at the greatest possible production of goods and at

facilitating technical progress; second, it may aim at securing

distributive justice; third, it may aim at giving security against

destitution; and, fourth, it may aim at liberating creative impulses

and diminishing possessive impulses.

Of these four purposes the last is the most important. Security is

chiefly important as a means to it. State socialism, though it might

give material security and more justice than we have at present, would

probably fail to liberate creative impulses or produce a progressive

society.

Our present system fails in all four purposes. It is chiefly defended

on the ground that it achieves the first of the four purposes, namely,

the greatest possible production of material goods, but it only does

this in a very short-sighted way, by methods which are wasteful in the

long run both of human material and of natural resources.

Capitalistic enterprise involves a ruthless belief in the importance

of increasing material production to the utmost possible extent now

and in the immediate future. In obedience to this belief, new

portions of the earth's surface are continually brought under the sway

of industrialism. Vast tracts of Africa become recruiting grounds for

the labor required in the gold and diamond mines of the Rand,

Rhodesia, and Kimberley; for this purpose, the population is

demoralized, taxed, driven into revolt, and exposed to the

contamination of European vice and disease. Healthy and vigorous

races from Southern Europe are tempted to America, where sweating and

slum life reduce their vitality if they do not actually cause their

death. What damage is done to our own urban populations by the

conditions under which they live, we all know. And what is true of

the human riches of the world is no less true of the physical

resources. The mines, forests, and wheat-fields of the world are all

being exploited at a rate which must practically exhaust them at no

distant date. On the side of material production, the world is living

too fast; in a kind of delirium, almost all the energy of the world

has rushed into the immediate production of something, no matter what,

and no matter at what cost. And yet our present system is defended on

the ground that it safeguards progress!

It cannot be said that our present economic system is any more

successful in regard to the other three objects which ought to be

aimed at. Among the many obvious evils of capitalism and the wage

system, none are more glaring than that they encourage predatory

instincts, that they allow economic injustice, and that they give

great scope to the tyranny of the employer.

As to predatory instincts, we may say, broadly speaking, that in a

state of nature there would be two ways of acquiring riches--one by

production, the other by robbery. Under our existing system, although

what is recognized as robbery is forbidden, there are nevertheless

many ways of becoming rich without contributing anything to the wealth

of the community. Ownership of land or capital, whether acquired or

inherited, gives a legal right to a permanent income. Although most

people have to produce in order to live, a privileged minority are

able to live in luxury without producing anything at all. As these

are the men who are not only the most fortunate but also the most

respected, there is a general desire to enter their ranks, and a

widespread unwillingness to face the fact that there is no

justification whatever for incomes derived in this way. And apart

from the passive enjoyment of rent or interest, the methods of

acquiring wealth are very largely predatory. It is not, as a rule, by

means of useful inventions, or of any other action which increases the

general wealth of the community, that men amass fortunes; it is much

more often by skill in exploiting or circumventing others. Nor is it

only among the rich that our present régime promotes a narrowly

acquisitive spirit. The constant risk of destitution compels most men

to fill a great part of their time and thought with the economic

struggle. There is a theory that this increases the total output of

wealth by the community. But for reasons to which I shall return

later, I believe this theory to be wholly mistaken.

Economic injustice is perhaps the most obvious evil of our present

system. It would be utterly absurd to maintain that the men who

inherit great wealth deserve better of the community than those who

have to work for their living. I am not prepared to maintain that

economic justice requires an exactly equal income for everybody. Some

kinds of work require a larger income for efficiency than others do;

but there is economic injustice as soon as a man has more than his

share, unless it is because his efficiency in his work requires it, or

as a reward for some definite service. But this point is so obvious

that it needs no elaboration.

The modern growth of monopolies in the shape of trusts, cartels,

federations of employers and so on has greatly increased the power of

the capitalist to levy toll on the community. This tendency will not

cease of itself, but only through definite action on the part of those

who do not profit by the capitalist régime. Unfortunately the

distinction between the proletariat and the capitalist is not so sharp

as it was in the minds of socialist theorizers. Trade-unions have

funds in various securities; friendly societies are large capitalists;

and many individuals eke out their wages by invested savings. All

this increases the difficulty of any clear-cut radical change in our

economic system. But it does not diminish the desirability of such a

change.

Such a system as that suggested by the French syndicalists, in which

each trade would be self-governing and completely independent, without

the control of any central authority, would not secure economic

justice. Some trades are in a much stronger bargaining position than

others. Coal and transport, for example, could paralyze the national

life, and could levy blackmail by threatening to do so. On the other

hand, such people as school teachers, for example, could rouse very

little terror by the threat of a strike and would be in a very weak

bargaining position. Justice can never be secured by any system of

unrestrained force exercised by interested parties in their own

interests. For this reason the abolition of the state, which the

syndicalists seem to desire, would be a measure not compatible with

economic justice.

The tyranny of the employer, which at present robs the greater part of

most men's lives of all liberty and all initiative, is unavoidable so

long as the employer retains the right of dismissal with consequent

loss of pay. This right is supposed to be essential in order that men

may have an incentive to work thoroughly. But as men grow more

civilized, incentives based on hope become increasingly preferable to

those that are based on fear. It would be far better that men should

be rewarded for working well than that they should be punished for

working badly. This system is already in operation in the civil

service, where a man is only dismissed for some exceptional degree of

vice or virtue, such as murder or illegal abstention from it.

Sufficient pay to ensure a livelihood ought to be given to every

person who is willing to work, independently of the question whether

the particular work at which he is skilled is wanted at the moment or

not. If it is not wanted, some new trade which is wanted ought to be

taught at the public expense. Why, for example, should a hansom-cab

driver be allowed to suffer on account of the introduction of taxies?

He has not committed any crime, and the fact that his work is no

longer wanted is due to causes entirely outside his control. Instead

of being allowed to starve, he ought to be given instruction in motor

driving or in whatever other trade may seem most suitable. At

present, owing to the fact that all industrial changes tend to cause

hardships to some section of wage-earners, there is a tendency to

technical conservatism on the part of labor, a dislike of innovations,

new processes, and new methods. But such changes, if they are in the

permanent interest of the community, ought to be carried out without

allowing them to bring unmerited loss to those sections of the

community whose labor is no longer wanted in the old form. The

instinctive conservatism of mankind is sure to make all processes of

production change more slowly than they should. It is a pity to add

to this by the avoidable conservatism which is forced upon organized

labor at present through the unjust workings of a change.

It will be said that men will not work well if the fear of dismissal

does not spur them on. I think it is only a small percentage of whom

this would be true at present. And those of whom it would be true

might easily become industrious if they were given more congenial work

or a wiser training. The residue who cannot be coaxed into industry

by any such methods are probably to be regarded as pathological cases,

requiring medical rather than penal treatment. And against this

residue must be set the very much larger number who are now ruined in

health or in morale by the terrible uncertainty of their livelihood

and the great irregularity of their employment. To very many,

security would bring a quite new possibility of physical and moral

health.

The most dangerous aspect of the tyranny of the employer is the power

which it gives him of interfering with men's activities outside their

working hours. A man may be dismissed because the employer dislikes

his religion or his politics, or chooses to think his private life

immoral. He may be dismissed because he tries to produce a spirit of

independence among his fellow employees. He may fail completely to

find employment merely on the ground that he is better educated than

most and therefore more dangerous. Such cases actually occur at

present. This evil would not be remedied, but rather intensified,

under state socialism, because, where the State is the only employer,

there is no refuge from its prejudices such as may now accidentally

arise through the differing opinions of different men. The State

would be able to enforce any system of beliefs it happened to like,

and it is almost certain that it would do so. Freedom of thought

would be penalized, and all independence of spirit would die out.

Any rigid system would involve this evil. It is very necessary that

there should be diversity and lack of complete systematization.

Minorities must be able to live and develop their opinions freely. If

this is not secured, the instinct of persecution and conformity will

force all men into one mold and make all vital progress impossible.

For these reasons, no one ought to be allowed to suffer destitution so

long as he or she is _willing_ to work. And no kind of inquiry ought

to be made into opinion or private life. It is only on this basis

that it is possible to build up an economic system not founded upon

tyranny and terror.

II

The power of the economic reformer is limited by the technical

productivity of labor. So long as it was necessary to the bare

subsistence of the human race that most men should work very long

hours for a pittance, so long no civilization was possible except an

aristocratic one; if there were to be men with sufficient leisure for

any mental life, there had to be others who were sacrificed for the

good of the few. But the time when such a system was necessary has

passed away with the progress of machinery. It would be possible now,

if we had a wise economic system, for all who have mental needs to

find satisfaction for them. By a few hours a day of manual work, a

man can produce as much as is necessary for his own subsistence; and

if he is willing to forgo luxuries, that is all that the community has

a right to demand of him. It ought to be open to all who so desire to

do short hours of work for little pay, and devote their leisure to

whatever pursuit happens to attract them. No doubt the great majority

of those who chose this course would spend their time in mere

amusement, as most of the rich do at present. But it could not be

said, in such a society, that they were parasites upon the labor of

others. And there would be a minority who would give their hours of

nominal idleness to science or art or literature, or some other

pursuit out of which fundamental progress may come. In all such

matters, organization and system can only do harm. The one thing that

can be done is to provide opportunity, without repining at the waste

that results from most men failing to make good use of the

opportunity.

But except in cases of unusual laziness or eccentric ambition, most

men would elect to do a full day's work for a full day's pay. For

these, who would form the immense majority, the important thing is

that ordinary work should, as far as possible, afford interest and

independence and scope for initiative. These things are more

important than income, as soon as a certain minimum has been reached.

They can be secured by gild socialism, by industrial self-government

subject to state control as regards the relations of a trade to the

rest of the community. So far as I know, they cannot be secured in

any other way.

Guild socialism, as advocated by Mr. Orage and the "New Age," is

associated with a polemic against "political" action, and in favor of

direct economic action by trade-unions. It shares this with

syndicalism, from which most of what is new in it is derived. But I

see no reason for this attitude; political and economic action seem to

me equally necessary, each in its own time and place. I think there

is danger in the attempt to use the machinery of the present

capitalist state for socialistic purposes. But there is need of

political action to transform the machinery of the state, side by side

with the transformation which we hope to see in economic institutions.

In this country, neither transformation is likely to be brought about

by a sudden revolution; we must expect each to come step by step, if

at all, and I doubt if either could or should advance very far without

the other.

The economic system we should ultimately wish to see would be one in

which the state would be the sole recipient of economic rent, while

private capitalistic enterprises should be replaced by self-governing

combinations of those who actually do the work. It ought to be

optional whether a man does a whole day's work for a whole day's pay,

or half a day's work for half a day's pay, except in cases where such

an arrangement would cause practical inconvenience. A man's pay

should not cease through the accident of his work being no longer

needed, but should continue so long as he is willing to work, a new

trade being taught him at the public expense, if necessary.

Unwillingness to work should be treated medically or educationally,

when it could not be overcome by a change to some more congenial

occupation.

The workers in a given industry should all be combined in one

autonomous unit, and their work should not be subject to any outside

control. The state should fix the price at which they produce, but

should leave the industry self-governing in all other respects. In

fixing prices, the state should, as far as possible, allow each

industry to profit by any improvements which it might introduce into

its own processes, but should endeavor to prevent undeserved loss or

gain through changes in external economic conditions. In this way

there would be every incentive to progress, with the least possible

danger of unmerited destitution. And although large economic

organizations will continue, as they are bound to do, there will be a

diffusion of power which will take away the sense of individual

impotence from which men and women suffer at present.

III

Some men, though they may admit that such a system would be desirable,

will argue that it is impossible to bring it about, and that therefore

we must concentrate on more immediate objects.

I think it must be conceded that a political party ought to have

proximate aims, measures which it hopes to carry in the next session

or the next parliament, as well as a more distant goal. Marxian

socialism, as it existed in Germany, seemed to me to suffer in this

way: although the party was numerically powerful, it was politically

weak, because it had no minor measures to demand while waiting for the

revolution. And when, at last, German socialism was captured by those

who desired a less impracticable policy, the modification which

occurred was of exactly the wrong kind: acquiescence in bad policies,

such as militarism and imperialism, rather than advocacy of partial

reforms which, however inadequate, would still have been steps in the

right direction.

A similar defect was inherent in the policy of French syndicalism as

it existed before the war. Everything was to wait for the general

strike; after adequate preparation, one day the whole proletariat

would unanimously refuse to work, the property owners would

acknowledge their defeat, and agree to abandon all their privileges

rather than starve. This is a dramatic conception; but love of drama

is a great enemy of true vision. Men cannot be trained, except under

very rare circumstances, to do something suddenly which is very

different from what they have been doing before. If the general

strike were to succeed, the victors, despite their anarchism, would be

compelled at once to form an administration, to create a new police

force to prevent looting and wanton destruction, to establish a

provisional government issuing dictatorial orders to the various

sections of revolutionaries. Now the syndicalists are opposed in

principle to all political action; they would feel that they were

departing from their theory in taking the necessary practical steps,

and they would be without the required training because of their

previous abstention from politics. For these reasons it is likely

that, even after a syndicalist revolution, actual power would fall

into the hands of men who were not really syndicalists.

Another objection to a program which is to be realized suddenly at

some remote date by a revolution or a general strike is that

enthusiasm flags when there is nothing to do meanwhile, and no partial

success to lessen the weariness of waiting. The only sort of movement

which can succeed by such methods is one where the sentiment and the

program are both very simple, as is the case in rebellions of

oppressed nations. But the line of demarcation between capitalist and

wage-earner is not sharp, like the line between Turk and Armenian, or

between an Englishman and a native of India. Those who have advocated

the social revolution have been mistaken in their political methods,

chiefly because they have not realized how many people there are in

the community whose sympathies and interests lie half on the side of

capital, half on the side of labor. These people make a clear-cut

revolutionary policy very difficult.

For these reasons, those who aim at an economic reconstruction which

is not likely to be completed to-morrow must, if they are to have any

hope of success, be able to approach their goal by degrees, through

measures which are of some use in themselves, even if they should not

ultimately lead to the desired end. There must be activities which

train men for those that they are ultimately to carry out, and there

must be possible achievements in the near future, not only a vague

hope of a distant paradise.

But although I believe that all this is true, I believe no less firmly

that really vital and radical reform requires some vision beyond the

immediate future, some realization of what human beings might make of

human life if they chose. Without some such hope, men will not have

the energy and enthusiasm necessary to overcome opposition, or the

steadfastness to persist when their aims are for the moment unpopular.

Every man who has really sincere desire for any great amelioration in

the conditions of life has first to face ridicule, then persecution,

then cajolery and attempts at subtle corruption. We know from painful

experience how few pass unscathed through these three ordeals. The

last especially, when the reformer is shown all the kingdoms of the

earth, is difficult, indeed almost impossible, except for those who

have made their ultimate goal vivid to themselves by clear and

definite thought.

Economic systems are concerned essentially with the production and

distribution of material goods. Our present system is wasteful on the

production side, and unjust on the side of distribution. It involves

a life of slavery to economic forces for the great majority of the

community, and for the minority a degree of power over the lives of

others which no man ought to have. In a good community the production

of the necessaries of existence would be a mere preliminary to the

important and interesting part of life, except for those who find a

pleasure in some part of the work of producing necessaries. It is not

in the least necessary that economic needs should dominate man as they

do at present. This is rendered necessary at present, partly by the

inequalities of wealth, partly by the fact that things of real value,

such as a good education, are difficult to acquire, except for the

well-to-do.

Private ownership of land and capital is not defensible on grounds of

justice, or on the ground that it is an economical way of producing

what the community needs. But the chief objections to it are that it

stunts the lives of men and women, that it enshrines a ruthless

possessiveness in all the respect which is given to success, that it

leads men to fill the greater part of their time and thought with the

acquisition of purely material goods, and that it affords a terrible

obstacle to the advancement of civilization and creative energy.

The approach to a system free from these evils need not be sudden; it

is perfectly possible to proceed step by step towards economic freedom

and industrial self-government. It is not true that there is any

outward difficulty in creating the kind of institutions that we have

been considering. If organized labor wishes to create them, nothing

could stand in its way. The difficulty involved is merely the

difficulty of inspiring men with hope, of giving them enough

imagination to see that the evils from which they suffer are

unnecessary, and enough thought to understand how the evils are to be

cured. This is a difficulty which can be overcome by time and energy.

But it will not be overcome if the leaders of organized labor have no

breadth of outlook, no vision, no hopes beyond some slight superficial

improvement within the framework of the existing system.

Revolutionary action may be unnecessary, but revolutionary thought is

indispensable, and, as the outcome of thought, a rational and

constructive hope.

Political Ideals · 第 2 / 5 章