Chapter II: Capitalism and the Wage System Political ideals | ||
2. 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
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
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
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
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.
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
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
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
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
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
Any rigid system would involve this evil. It is very necessary that there should be diversity
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
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
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
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
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
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,
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,
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
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
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,
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
Chapter II: Capitalism and the Wage System Political ideals | ||