British Socialism. J. Ellis Barker
capitalists. It should not be forgotten that many of the wealthiest men, such as Rockefeller, Vanderbilt, Carnegie, Krupp, the first Rothschild, Sir Thomas Lipton, Passmore Edwards, and many others, have risen from the ranks and were working men—and every day capitalists lose their money and become workmen. Workmen may become capitalists by thrift. Co-operating workmen in England, France, Germany, and other countries own vast industrial undertakings, banks, &c. In those districts where thrift and co-operation are general (France, Switzerland, Holland) the "naked and propertyless labourers" disappear, whilst in equally prosperous districts where improvidence is general, they are many. The prosperity of the working classes in France, Switzerland, Holland, and other countries disproves the assertion that the workman is condemned to everlasting poverty because of the Surplus-Value Doctrine.
Assertions in support of the "Surplus-Value Doctrine" such as "Carnegie and other millionaires have wrung their wealth literally out of the bodies of the underfed"[186] are as malicious as they are untrue. Men like Carnegie and Krupp have not "wrung their wealth out of the bodies of the underfed," but out of Nature. They have created vast industries in barren places, and the industries which they have created nourish now tens of thousands of working men. Men like Krupp and Carnegie have diminished misery, not increased it. Their capital, created by their brains with the assistance of labour out of Nature, has rather enriched labour than that labour has enriched Carnegie and Krupp. Their wealth is not dead wealth; it produces wages and articles of use. The "Surplus-Value Doctrine" is a grotesque distortion of, and an unjustified protest against, the fact that manufacturers and other organisers and directors of labour will not work for nothing.
We have seen in the foregoing that, according to the fundamental Socialist doctrines, "labour is the only source of wealth." We have also seen that, according to the "Iron Law of Wages" and the "Law of Increasing Misery," the workmen are condemned to great, permanent, and constantly increasing misery. Further, we have learned that, according to the "Surplus-Value Doctrine," all the fruit of their labour, minus the cost of their bare subsistence, is taken from the workers by the capitalists. Hence it is only natural and logical that the assertion of the fundamental doctrines, namely—
1. Labour is the only source of wealth,
2. Wages maintains mere animal existence,
3. The misery of the workers is constantly increasing,
4. The position of the worker is hopeless,
has led to this fifth doctrine:
The Labourer is Entitled to the Entire Product of His Labour
This doctrine is put forth by practically all British Socialists, not only as a doctrine but also as a demand. For instance "the New School of Trades-Unionists declare themselves in open and uncompromising revolt against the established relations between capital and labour; and they expound a new political economy which says that nothing less than the full fruits of industry shall be reckoned the fair reward of the producing class. They want the whole four-fourths of their earnings, instead of the one-fourth at present doled back in wages."[187] This demand must have precedence over all other measures whatsoever, for "until you have settled the material question as to how the producers of wealth are to get for themselves the full value of what they produce by their labour, it is impossible to settle anything else."[188]
According to many Socialists, Socialism would immediately abolish their grievances and give to the worker the entire produce of his labour. "At present the frugal workman only gets about one-third of his earnings. Under Socialism he would get all his earnings."[189] "Under the new order all will be productive workers, receiving an equivalent for what they produce—not merely one-half of it as now under the wage-system—in some form."[190] Under the heading "Basis of the Fabian Society," the Fabian Society publishes a statement of the fundamental principles of that Society in which we read: "If these measures" (confiscation of all private property) "be carried out, without compensation (though not without such relief to expropriated individuals as may seem fit to the community), rent and interest will be added to the reward of labour, the idle class now living on the labour of others will necessarily disappear, and practical equality of opportunity will be maintained by the spontaneous action of economic forces with much less interference with personal liberty than the present system entails."
The absurdity of the demand for "the entire product of labour," which is raised by Socialists on behalf of the labourer is clear even to the most superficial thinker. The majority of Socialists know quite well that writing off, repairs, renewals, the replacing of machinery, the enlargement of factories, &c., cannot be done gratis, that the distribution of the whole produce of labour to the workers can be effected only by neglecting and destroying the means of production.
The impossibility of giving to the worker the "whole product of his labour" by abolishing the private capitalist is clearly recognised and honestly admitted by the German Socialists. Kautsky, for instance, writes: "If the income of the capitalists were added to that of the workers, the wages of each would be doubled. Unfortunately, however, the matter will not be settled so simply. If we expropriate capitalism, we must at the same time take over its social functions—among these the important one of capitalist accumulation. The capitalists do not consume all their income; a portion of it they put away for the extension of production. A proletarian régime would also have to do the same in order to extend production. It would not therefore be able to transfer, even in the event of a radical confiscation of capital, the whole of the former income to the working class. Besides, a portion of the surplus value which the capitalists now pocket, they must hand over to the State in the shape of taxes. For these reasons our Socialists are guilty of wilful deception if they tell the workers that under a Socialist régime their wages would be doubled and trebled."[191] Nevertheless, the doctrine and the demand that "the labourer is entitled to the entire product of his labour" is not abandoned by British Socialists, apparently because it is extremely useful for arousing the passions of the workers against the capitalists in accordance with Gronlund's advice,[192] and for bringing new adherents to the Socialist camp.
Only the Fabian Society, the more scientific section of the English Socialists, has mildly protested against this absurd doctrine and demand, but that protest has not been heeded. In a little-read pamphlet of that Society, the following statement may be found: "The Fabian Society steadfastly discountenances all schemes for securing to any person or any group of persons the entire product of their labour. It recognises that wealth is social in its origin and must be social in its distribution" (which means in plain English, must be preserved by the thrifty few, official or non-official, for the use of the unthrifty many), "since the evolution of industry has made it impossible to distinguish the particular contribution that each person makes to the common product, or to ascertain the value."[193] Notwithstanding these emphatic statements, the Fabian Society preserves with characteristic duplicity[194] the statement in its programme that "rent and interest, will be added to the reward of labour."
Most British Socialist writers are not aware, or rather pretend not to be aware, of the necessity of preserving and increasing the national capital. In "Land, Labour, and Liberty," we read: "Whilst in 1845 the total wealth of this country was estimated at 4,000,000,000l., it is now estimated at over 12,000,000,000l. The monopolist classes, without denying themselves anything, and whilst producing comparatively nothing, have piled up an additional eight thousand millions. The superfluous handful of mere possessors remain the flowers and foliage of society; the three-quarters of the nation of indispensable producers remain the manure."