This is a modern-English version of Socialism, originally written by Mill, John Stuart. It has been thoroughly updated, including changes to sentence structure, words, spelling, and grammar—to ensure clarity for contemporary readers, while preserving the original spirit and nuance. If you click on a paragraph, you will see the original text that we modified, and you can toggle between the two versions.

Scroll to the bottom of this page and you will find a free ePUB download link for this book.





Transcriber's Note:

Transcriber's Note:


Inconsistent hyphenation in the original document has been preserved.

Inconsistent hyphenation in the original document has been kept.

Obvious typographical errors have been corrected. For a complete list, please see the end of this document.

Obvious typos have been corrected. For a complete list, please see the __A_TAG_PLACEHOLDER_0__.




SOCIALISM.







BY

JOHN STUART MILL.






Reprinted from the Fortnightly Review.







CHICAGO.
BELFORDS, CLARKE & CO.
MDCCCLXXIX.







Publisher's Mark






PRELIMINARY NOTICE.


It was in the year 1869 that, impressed with the degree in which, even during the last twenty years, when the world seemed so wholly occupied with other matters, the socialist ideas of speculative thinkers had spread among the workers in every civilized country, Mr. Mill formed the design of writing a book on Socialism. Convinced that the inevitable tendencies of modern society must be to bring the questions involved in it always more and more to the front, he thought it of great practical consequence that they should be thoroughly and impartially considered, and the lines pointed out by which the best speculatively-tested theories might, without prolongation of suffering on the one hand, or unnecessary disturbance on the other, be applied to the existing order of things. He therefore planned a work which[6] should go exhaustively through the whole subject, point by point; and the chapters now printed are the first rough drafts thrown down towards the foundation of that work. These chapters might not, when the work came to be completely written out and then re-written, according to the author's habit, have appeared in the present order; they might have been incorporated into different parts of the work. It has not been without hesitation that I have yielded to the urgent wish of the editor of this Review to give these chapters to the world; but I have complied with his request because, while they appear to me to possess great intrinsic value as well as special application to the problems now forcing themselves on public attention, they will not, I believe, detract even from the mere literary reputation of their author, but will rather form an example of the patient labor with which good work is done.

In 1869, Mr. Mill decided to write a book on Socialism, struck by how, even in the past twenty years when the world seemed focused on other issues, socialist ideas had spread among workers in every developed country. He believed that the ongoing trends in modern society would increasingly bring these questions to the forefront, and he felt it was important for them to be considered thoroughly and fairly. He aimed to identify practical ways to apply well-tested theories to the current social order without causing prolonged suffering or unnecessary disruption. He planned a comprehensive work that would cover the whole subject point by point, and the chapters printed now are the initial drafts leading to that effort. These chapters might not appear in this order in the final version, as the author typically revises his work significantly. I have hesitated to share these chapters at the strong suggestion of the Review's editor, but I've agreed because I believe they have substantial value and relevance to the pressing issues of today, and I don't think they will harm the author's literary reputation; instead, they will illustrate the dedication involved in producing quality work.

Helen Taylor.

Helen Taylor.

January, 1879.

January 1879.







SOCIALISM.





INTRODUCTORY.


In the great country beyond the Atlantic, which is now well-nigh the most powerful country in the world, and will soon be indisputably so, manhood suffrage prevails. Such is also the political qualification of France since 1848, and has become that of the German Confederation, though not of all the several states composing it. In Great Britain the suffrage is not yet so widely extended, but the last Reform Act admitted within what is called the pale of the Constitution so large a body of those who live on weekly wages, that as soon and as often as these shall choose to act together as a class, and exert for any common object the whole of the electoral power which our present institutions give them, they will exercise, though not a [8]complete ascendency, a very great influence on legislation. Now these are the very class which, in the vocabulary of the higher ranks, are said to have no stake in the country. Of course they have in reality the greatest stake, since their daily bread depends on its prosperity. But they are not engaged (we may call it bribed) by any peculiar interest of their own, to the support of property as it is, least of all to the support of inequalities of property. So far as their power reaches, or may hereafter reach, the laws of property have to depend for support upon considerations of a public nature, upon the estimate made of their conduciveness to the general welfare, and not upon motives of a mere personal character operating on the minds of those who have control over the Government.

In the great country across the Atlantic, which is now nearly the most powerful nation in the world and will soon be undeniably so, universal manhood suffrage is in place. This has also been the political standard in France since 1848 and has been adopted by the German Confederation, though not by all its member states. In Great Britain, suffrage isn’t as widespread yet, but the last Reform Act allowed a significant number of those who earn weekly wages to participate within what is called the pale of the Constitution. As soon as these individuals decide to unite as a class and leverage the electoral power our current systems provide for a common goal, they will exercise, though not complete, a substantial influence on legislation. Ironically, this is the very class that, according to the elite, are said to have no stake in the country. In reality, they have the greatest stake since their daily bread relies on the nation’s prosperity. However, they aren’t motivated (we could say they are discouraged) by specific interests of their own to support property as it stands, especially not to uphold property inequalities. To the extent that their influence reaches, or may reach in the future, the laws of property will have to rely on public considerations, on how beneficial they are deemed for the general welfare, rather than on purely personal motives affecting those in charge of the Government.

It seems to me that the greatness of this change is as yet by no means completely realized, either by those who opposed, or by those who effected our last constitutional reform. To say the truth, the perceptions of Englishmen are of late somewhat blunted as to the [9]tendencies of political changes. They have seen so many changes made, from which, while only in prospect, vast expectations were entertained, both of evil and of good, while the results of either kind that actually followed seemed far short of what had been predicted, that they have come to feel as if it were the nature of political changes not to fulfil expectation, and have fallen into a habit of half-unconscious belief that such changes, when they take place without a violent revolution, do not much or permanently disturb in practice the course of things habitual to the country. This, however, is but a superficial view either of the past or of the future. The various reforms of the last two generations have been at least as fruitful in important consequences as was foretold. The predictions were often erroneous as to the suddenness of the effects, and sometimes even as to the kind of effect. We laugh at the vain expectations of those who thought that Catholic emancipation would tranquilize Ireland, or reconcile it to British rule. At the end of the first [10]ten years of the Reform Act of 1832, few continued to think either that it would remove every important practical grievance, or that it had opened the door to universal suffrage. But five-and-twenty years more of its operation had given scope for a large development of its indirect working, which is much more momentous than the direct. Sudden effects in history are generally superficial. Causes which go deep down into the roots of future events produce the most serious parts of their effect only slowly, and have, therefore, time to become a part of the familiar order of things before general attention is called to the changes they are producing; since, when the changes do become evident, they are often not seen, by cursory observers, to be in any peculiar manner connected with the cause. The remoter consequences of a new political fact are seldom understood when they occur, except when they have been appreciated beforehand.

It seems to me that the significance of this change is not fully understood, either by those who opposed it or by those who brought about our last constitutional reform. To be honest, people in England have recently become somewhat numb to the implications of political changes. They have witnessed so many reforms that sparked great expectations—both good and bad—that, in hindsight, the actual outcomes seemed far less impressive than predicted. Because of this, they've started to believe that political changes typically don’t live up to expectations, falling into a semi-conscious mindset that such changes, when they occur without a violent uprising, don’t fundamentally or permanently disrupt the usual way of life in the country. However, this is merely a surface-level understanding of both the past and the future. The various reforms of the last two generations have had at least as many significant consequences as anticipated. The predictions were often wrong regarding how quickly the effects would be felt, and sometimes even about their nature. We look back and shake our heads at the misguided hopes of those who believed that Catholic emancipation would calm Ireland or make it accept British rule. At the end of the first [10]ten years after the Reform Act of 1832, few still thought it would erase every important issue or that it would lead to universal suffrage. But twenty-five years later, the Act had allowed for significant indirect effects, which are actually much more important than the direct ones. Sudden changes in history tend to be superficial. Causes that dig deep into the foundations of future events produce their most serious impacts gradually, giving them time to integrate into the normal order of things before people really notice the changes. Often, when these changes become noticeable, they don't seem connected to their original cause to casual observers. The far-reaching consequences of a new political reality are rarely understood upon their occurrence unless they were anticipated beforehand.

This timely appreciation is particularly easy in respect to tendencies of the change made in our institutions by the Reform Act of 1867. [11]The great increase of electoral power which the Act places within the reach of the working classes is permanent. The circumstances which have caused them, thus far, to make a very limited use of that power, are essentially temporary. It is known even to the most inobservant, that the working classes have, and are likely to have, political objects which concern them as working classes, and on which they believe, rightly or wrongly, that the interests and opinions of the other powerful classes are opposed to theirs. However much their pursuit of these objects may be for the present retarded by want of electoral organization, by dissensions among themselves, or by their not having reduced as yet their wishes into a sufficiently definite practical shape, it is as certain as anything in politics can be, that they will before long find the means of making their collective electoral power effectively instrumental to the proportion of their collective objects. And when they do so, it will not be in the disorderly and ineffective way which belongs to a people not [12]habituated to the use of legal and constitutional machinery, nor will it be by the impulse of a mere instinct of levelling. The instruments will be the press, public meetings and associations, and the return to Parliament of the greatest possible number of persons pledged to the political aims of the working classes. The political aims will themselves be determined by definite political doctrines; for politics are now scientifically studied from the point of view of the working classes, and opinions conceived in the special interest of those classes are organized into systems and creeds which lay claim to a place on the platform of political philosophy, by the same right as the systems elaborated by previous thinkers. It is of the utmost importance that all reflecting persons should take into early consideration what these popular political creeds are likely to be, and that every single article of them should be brought under the fullest light of investigation and discussion, so that, if possible, when the time shall be ripe, whatever is right in them may be adopted, and what is wrong [13]rejected by general consent, and that instead of a hostile conflict, physical or only moral, between the old and the new, the best parts of both may be combined in a renovated social fabric. At the ordinary pace of those great social changes which are not effected by physical violence, we have before us an interval of about a generation, on the due employment of which it depends whether the accommodation of social institutions to the altered state of human society, shall be the work of wise foresight, or of a conflict of opposite prejudices. The future of mankind will be gravely imperilled, if great questions are left to be fought over between ignorant change and ignorant opposition to change.

This timely appreciation is especially easy when looking at the changes made in our institutions by the Reform Act of 1867. [11]The significant increase in electoral power that the Act gives to the working class is here to stay. The reasons they have so far utilized this power very little are mainly temporary. Even the most oblivious people understand that the working class has, and will likely have, political goals that concern them and which they feel, rightly or wrongly, conflict with the interests and opinions of more powerful classes. No matter how much their pursuit of these goals may currently be stalled due to lack of electoral organization, internal disagreements, or their inability to clearly define their wishes, it is as certain as anything in politics can be that they will soon find ways to effectively use their collective electoral power to achieve their common goals. And when they do, it won’t be in the chaotic and ineffective manner typical of a population not [12]used to navigating legal and constitutional processes, nor will it arise from a mere instinct to level things out. The tools they will use include the press, public meetings and associations, and electing as many people as possible to Parliament who are committed to the political aims of the working class. These political aims will be shaped by specific political doctrines; politics is now studied scientifically from the perspective of the working class, and beliefs formed to serve their interests have been organized into systems and ideologies that claim a place in political philosophy, just like those created by past thinkers. It is crucial that all thoughtful individuals consider early what these popular political creeds are likely to be, and that every aspect of them be thoroughly examined and discussed, so that when the moment is right, the valid parts can be accepted, and the flawed ones [13]can be discarded by general agreement, allowing for the best elements of both to merge into a renewed social structure instead of fostering a hostile conflict, be it physical or solely moral, between the old and the new. At the usual pace of significant social changes that don’t involve violence, we face about a generation's worth of time to wisely manage whether the adjustment of social institutions to the transformed state of human society will be a matter of careful foresight or a clash of opposing biases. The future of humanity could be seriously jeopardized if important matters are left to be contested between ignorant change and ignorant resistance to change.

And the discussion that is now required is one that must go down to the very first principles of existing society. The fundamental doctrines which were assumed as incontestable by former generations, are now put again on their trial. Until the present age, the institution of property in the shape in which it has been handed down from the past, had not, except by a few [14]speculative writers, been brought seriously into question, because the conflicts of the past have always been conflicts between classes, both of which had a stake in the existing constitution of property. It will not be possible to go on longer in this manner. When the discussion includes classes who have next to no property of their own, and are only interested in the institution so far as it is a public benefit, they will not allow anything to be taken for granted—certainly not the principle of private property, the legitimacy and utility of which are denied by many of the reasoners who look out from the stand-point of the working classes. Those classes will certainly demand that the subject, in all its parts, shall be reconsidered from the foundation; that all proposals for doing without the institution, and all modes of modifying it which have the appearance of being favorable to the interest of the working classes, shall receive the fullest consideration and discussion before it is decided that the subject must remain as it is. As far as this country is concerned, the [15]dispositions of the working classes have as yet manifested themselves hostile only to certain outlying portions of the proprietary system. Many of them desire to withdraw questions of wages from the freedom of contract, which is one of the ordinary attributions of private property. The more aspiring of them deny that land is a proper subject for private appropriation, and have commenced an agitation for its resumption by the State. With this is combined, in the speeches of some of the agitators, a denunciation of what they term usury, but without any definition of what they mean by the name; and the cry does not seem to be of home origin, but to have been caught up from the intercourse which has recently commenced through the Labor Congresses and the International Society, with the continental Socialists who object to all interest on money, and deny the legitimacy of deriving an income in any form from property apart from labor. This doctrine does not as yet show signs of being widely prevalent in Great Britain, but the soil is well prepared to receive the seeds of [16]this description which are widely scattered from those foreign countries where large, general theories, and schemes of vast promise, instead of inspiring distrust, are essential to the popularity of a cause. It is in France, Germany, and Switzerland that anti-property doctrines in the widest sense have drawn large bodies of working men to rally round them. In these countries nearly all those who aim at reforming society in the interest of the working classes profess themselves Socialists, a designation under which schemes of very diverse character are comprehended and confounded, but which implies at least a remodelling generally approaching to abolition of the institution of private property. And it would probably be found that even in England the more prominent and active leaders of the working classes are usually in their private creed Socialists of one order or another, though being, like most English politicians, better aware than their Continental brethren that great and permanent changes in the fundamental ideas of mankind are not to be [17]accomplished by a coup de main, they direct their practical efforts towards ends which seem within easier reach, and are content to hold back all extreme theories until there has been experience of the operation of the same principles on a partial scale. While such continues to be the character of the English working classes, as it is of Englishmen in general, they are not likely to rush head-long into the reckless extremities of some of the foreign Socialists, who, even in sober Switzerland, proclaim themselves content to begin by simple subversion, leaving the subsequent reconstruction to take care of itself; and by subversion, they mean not only the annihilation of all government, but getting all property of all kinds out of the hands of the possessors to be used for the general benefit; but in what mode it will, they say, be time enough afterwards to decide.

And the discussion we need to have now must get down to the very basics of our society. The core beliefs that previous generations accepted as undeniable are now being challenged. Until now, the institution of property, as it has come down to us, hasn’t been seriously questioned, except by a few speculative writers. This is because past conflicts have always been between classes, both of which had a stake in the existing property arrangement. We can’t keep going like this. When we include classes that have almost no property of their own and are only interested in its public benefits, they won’t accept anything as a given—especially not private property, which many from the working class viewpoint see as neither legitimate nor useful. These classes will certainly demand that the entire subject be reconsidered from the ground up; that all proposals to modify or eliminate the institution, which seem to favor the working class, receive full attention before deciding that things must stay as they are. As far as this country is concerned, the working class has only shown hostility toward certain parts of the property system. Many of them want to take wage questions out of the realm of free contract, which is a typical feature of private property. The more ambitious among them deny that land should be privately owned and have started a movement to have it taken back by the State. Some of these activists also criticize what they call usury, though they don’t define what that means; and the demand seems to have been influenced by recent interactions with continental Socialists who reject any interest on money and deny the legitimacy of earning income from property without labor. This belief isn’t widespread in Great Britain yet, but the environment is ripe for these ideas, which have been spreading from other countries where grand theories and ambitious schemes are actually vital to a movement’s appeal. In France, Germany, and Switzerland, anti-property beliefs have attracted large groups of workers. In these countries, nearly everyone advocating for reform in the interest of the working class identifies as a Socialist, a term that encompasses a variety of ideas but generally implies a push toward abolishing private property. It’s likely that even in England, many of the most prominent and active leaders of the working classes are privately Socialists of some kind, although they, like most English politicians, understand better than their Continental counterparts that significant and lasting changes to core societal ideas can't be achieved through a sudden upheaval. So, they focus their efforts on more attainable goals and hold back on extreme theories until there's evidence of how those principles work on a smaller scale. As long as this remains true for the English working class, as it does for English people in general, they’re not likely to dive headlong into the reckless extremes seen in some foreign Socialist movements, where even in orderly Switzerland, people declare their readiness to start with total upheaval and leave rebuilding for later; by upheaval, they mean not just the end of all government but also transferring all types of property from owners for the common good, deciding the specifics of that process later.

The avowal of this doctrine by a public newspaper, the organ of an association (La Solidarite published at Neuchatel), is one of the most curious signs of the times. The leaders of the English working-men—whose delegates at the [18]congresses of Geneva and Bale contributed much the greatest part of such practical common sense as was shown there—are not likely to begin deliberately by anarchy, without having formed any opinion as to what form of society should be established in the room of the old. But it is evident that whatever they do propose can only be properly judged, and the grounds of the judgment made convincing to the general mind, on the basis of a previous survey of the two rival theories, that of private property and that of Socialism, one or other of which must necessarily furnish most of the premises in the discussion. Before, therefore, we can usefully discuss this class of questions in detail, it will be advisable to examine from their foundations the general question raised by Socialism. And this examination should be made without any hostile prejudice. However irrefutable the arguments in favor of the laws of property may appear to those to whom they have the double prestige of immemorial custom and of personal interest, nothing is more natural than that a working [19]man who has begun to speculate on politics, should regard them in a very different light. Having, after long struggles, attained in some countries, and nearly attained in others, the point at which for them, at least, there is no further progress to make in the department of purely political rights, is it possible that the less fortunate classes among the "adult males" should not ask themselves whether progress ought to stop there? Notwithstanding all that has been done, and all that seems likely to be done, in the extension of franchises, a few are born to great riches, and the many to a penury, made only more grating by contrast. No longer enslaved or made dependent by force of law, the great majority are so by force of poverty; they are still chained to a place, to an occupation, and to conformity with the will of an employer, and debarred by the accident of birth both from the enjoyments, and from the mental and moral advantages, which others inherit without exertion and independently of desert. That this is an evil equal to almost any of those against which [20]mankind have hitherto struggled, the poor are not wrong in believing. Is it a necessary evil? They are told so by those who do not feel it—by those who have gained the prizes in the lottery of life. But it was also said that slavery, that despotism, that all the privileges of oligarchy were necessary. All the successive steps that have been made by the poorer classes, partly won from the better feelings of the powerful, partly extorted from their fears, and partly bought with money, or attained in exchange for support given to one section of the powerful in its quarrels with another, had the strongest prejudices opposed to them beforehand; but their acquisition was a sign of power gained by the subordinate classes, a means to those classes of acquiring more; it consequently drew to those classes a certain share of the respect accorded to power, and produced a corresponding modification in the creed of society respecting them; whatever advantages they succeeded in acquiring came to be considered their due, while, of those which they had not yet attained, they [21]continued to be deemed unworthy. The classes, therefore, which the system of society makes subordinate, have little reason to put faith in any of the maxims which the same system of society may have established as principles. Considering that the opinions of mankind have been found so wonderfully flexible, have always tended to consecrate existing facts, and to declare what did not yet exist, either pernicious or impracticable, what assurance have those classes that the distinction of rich and poor is grounded on a more imperative necessity than those other ancient and long-established facts, which, having been abolished, are now condemned even by those who formerly profited by them? This cannot be taken on the word of an interested party. The working classes are entitled to claim that the whole field of social institutions should be re-examined, and every question considered as if it now arose for the first time; with the idea constantly in view that the persons who are to be convinced are not those who owe their ease and importance to the present [22]system, but persons who have no other interest in the matter than abstract justice and the general good of the community. It should be the object to ascertain what institutions of property would be established by an unprejudiced legislator, absolutely impartial between the possessors of property and the non-possessors; and to defend and to justify them by the reasons which would really influence such a legislator, and not by such as have the appearance of being got up to make out a case for what already exists. Such rights or privileges of property as will not stand this test will, sooner or later, have to be given up. An impartial hearing ought, moreover, to be given to all objections against property itself. All evils and inconveniences attaching to the institution in its best form ought to be frankly admitted, and the best remedies or palliatives applied which human intelligence is able to devise. And all plans proposed by social reformers, under whatever name designated, for the purpose of attaining the benefits aimed at by the institution of property without its [23]inconveniences, should be examined with the same candor, not prejudged as absurd or impracticable.

The public endorsement of this doctrine by a newspaper, the voice of an association (La Solidarite published in Neuchatel), is one of the most interesting signs of our times. The leaders of the English working class—whose delegates at the [18]congresses in Geneva and Bale contributed most of the practical common sense displayed there—are unlikely to start with anarchy without having formed an idea about what kind of society should replace the old one. However, it’s clear that any proposals they make can only be properly evaluated, and the reasons for those evaluations made convincing to the public, based on a prior examination of the two opposing theories: that of private property and that of Socialism, each of which must provide most of the premises for the discussion. Therefore, before we can effectively discuss these issues in detail, it's advisable to thoroughly examine the fundamental question posed by Socialism. This examination should be done without any hostile bias. No matter how convincing the arguments for the laws of property may seem to those who benefit from long-standing customs and personal interests, it's only natural for a working-class person who has started thinking about politics to see things differently. After long struggles, some countries have reached a point where there is no further progress in terms of political rights. Is it possible that the less fortunate among the "adult males" don’t wonder if progress should stop there? Despite all that has been achieved, and all that seems possible in expanding voting rights, a few are born into great wealth, while many are born into poverty, made more painful by that contrast. No longer enslaved or legally dependent, the vast majority are held back by the grip of poverty; they remain tied to a location, an occupation, and the demands of an employer, and are denied by their birthright both the pleasures and the mental and moral advantages that others inherit effortlessly and without merit. The poor are justified in believing that this situation is an evil as significant as any that humanity has fought against until now. Is it an unavoidable evil? That's what those who don’t feel it—those who have won the lottery of life—tell them. But it was also claimed that slavery, despotism, and the privileges of oligarchy were necessary. All the advances made by the lower classes, partly achieved through the goodwill of the powerful, partly extracted from their fears, and partly purchased with money or in exchange for support given to one group of the powerful in their disputes with another, faced strong prejudices beforehand; but these gains signified power acquired by the subordinate classes, a means for those classes to gain even more; it consequently attracted to them some of the respect given to power, and produced a corresponding shift in society's view of them; whatever advantages they managed to acquire were seen as their rightful claim while those they had not yet achieved were deemed unworthy. Therefore, the classes that the societal system marginalizes have little cause to trust any maxims established by that same societal system. Given that human opinions have proven incredibly adaptable, often affirming existing realities and labeling what does not yet exist as harmful or impractical, what guarantee do these classes have that the distinctions between rich and poor are based on a more compelling necessity than other historical realities that have been abolished and are now condemned even by those who once benefited from them? This cannot be accepted on the assurance of those with vested interests. The working classes have the right to demand that the entire field of social institutions should be re-examined, and that every question should be considered as if it were being presented for the first time; with the constant understanding that those to be convinced are not those who owe their comfort and status to the current [22]system, but individuals who have no personal stake in the matter besides abstract justice and the overall well-being of the community. The goal should be to determine what property institutions would be established by an unbiased legislator, completely impartial between those who own property and those who do not; and to support and justify them with the reasons that would genuinely influence such a legislator, not by those that seem contrived to defend the status quo. Any rights or privileges of property that cannot pass this test will eventually need to be relinquished. Furthermore, all objections to property itself should receive an unbiased hearing. All issues and drawbacks associated with the institution, even in its best incarnation, should be honestly acknowledged, and the best remedies or alleviations that human ingenuity can devise ought to be applied. Likewise, all proposals put forth by social reformers, regardless of the names they are given, aimed at achieving the advantages sought through property without its [23]drawbacks, should be evaluated with the same openness, not dismissed as absurd or impractical.


Socialist Critiques of Today's Social Structure.

As in all proposals for change there are two elements to be considered—that which is to be changed, and that which it is to be changed to—so in Socialism considered generally, and in each of its varieties taken separately, there are two parts to be distinguished, the one negative and critical, the other constructive. There is, first, the judgment of Socialism on existing institutions and practices and on their results; and secondly, the various plans which it has propounded for doing better. In the former all the different schools of Socialism are at one. They agree almost to identity in the faults which they find with the economical order of existing society. Up to a certain point also they entertain the same general conception of the remedy to be provided for those faults; but in the details, notwithstanding this general agreement, there is a [24]wide disparity. It will be both natural and convenient, in attempting an estimate of their doctrines, to begin with the negative portion which is common to them all, and to postpone all mention of their differences until we arrive at that second part of their undertaking, in which alone they seriously differ.

As with any proposal for change, there are two elements to consider: what needs to be changed and what it should be changed to. In discussing Socialism in general and each of its variations separately, there are two parts to identify: one is negative and critical, and the other is constructive. First, there's the evaluation of Socialism regarding current institutions, practices, and their outcomes; second, there are the various plans it suggests for improvement. In the first part, all the different schools of Socialism are united. They almost agree completely on the flaws they see in the economic structure of today’s society. To some extent, they also share the same overall idea of solutions for these issues; however, in the specifics, there is a [24]wide range of differences. It's both logical and practical to start an assessment of their beliefs with the common negative aspect that they all share, and to delay discussing their differences until we reach the second part of their agenda, where they truly diverge.

This first part of our task is by no means difficult; since it consists only in an enumeration of existing evils. Of these there is no scarcity, and most of them are by no means obscure or mysterious. Many of them are the veriest commonplaces of moralists, though the roots even of these lie deeper than moralists usually attempt to penetrate. So various are they that the only difficulty is to make any approach to an exhaustive catalogue. We shall content ourselves for the present with mentioning a few of the principal. And let one thing be remembered by the reader. When item after item of the enumeration passes before him, and he finds one fact after another which he has been accustomed to include among the necessities of nature urged [25]as an accusation against social institutions, he is not entitled to cry unfairness, and to protest that the evils complained of are inherent in Man and Society, and are such as no arrangements can remedy. To assert this would be to beg the very question at issue. No one is more ready than Socialists to admit—they affirm it indeed much more decidedly than truth warrants—that the evils they complain of are irremediable in the present constitution of society. They propose to consider whether some other form of society may be devised which would not be liable to those evils, or would be liable to them in a much less degree. Those who object to the present order of society, considered as a whole and who accept as an alternative the possibility of a total change, have a right to set down all the evils which at present exist in society as part of their case, whether these are apparently attributable to social arrangements or not, provided they do not flow from physical laws which human power is not adequate, or human knowledge has not yet learned, to counteract. Moral evils [26]and such physical evils as would be remedied if all persons did as they ought, are fairly chargeable against the state of society which admits of them; and are valid as arguments until it is shown that any other state of society would involve an equal or greater amount of such evils. In the opinion of Socialists, the present arrangements of society in respect to Property and the Production and Distribution of Wealth, are as means to the general good, a total failure. They say that there is an enormous mass of evil which these arrangements do not succeed in preventing; that the good, either moral or physical, which they realize is wretchedly small compared with the amount of exertion employed, and that even this small amount of good is brought about by means which are full of pernicious consequences, moral and physical.

This first part of our task isn't difficult at all; it simply involves listing existing issues. There’s no shortage of these, and most are not at all obscure or mysterious. Many are just basic points that moralists often make, although the underlying causes tend to run deeper than they usually explore. They’re so varied that the main challenge is creating a complete list. For now, we’ll just mention a few key examples. And let one thing be clear to the reader: as each item comes up, and he sees facts he’s used to considering necessities of life as criticisms against social institutions, he shouldn't claim unfairness or argue that the issues raised are inherent in humanity and society, and that no system can fix them. To say this would be to sidestep the main question at hand. Socialists are more than willing to admit—indeed, they often assert it more strongly than is justified—that the problems they highlight are unfixable in the current structure of society. They propose to explore whether a different societal model might be created that wouldn't suffer from these issues, or would at least experience them to a much lesser extent. Those who challenge the current societal structure as a whole and consider the possibility of a complete overhaul have every right to list all the problems present in society as part of their argument, whether these issues seem to stem from social systems or not, as long as they don't arise from physical laws that human power can't change or human understanding hasn't yet grasped. Moral issues and those physical problems that could be fixed if everyone acted correctly can be justly attributed to the societal state that permits them; these serve as valid arguments until it’s proven that any other societal condition would result in an equal or greater number of such problems. Socialists believe that the current societal arrangements regarding Property, Production, and Distribution of Wealth are a complete failure in terms of promoting the general good. They argue that there's a massive amount of harm that these arrangements fail to prevent; that the good—whether moral or physical—that they manage to achieve is shockingly minimal compared to the effort involved, and that even this small good comes through means that bring harmful consequences, both moral and physical.

First among existing social evils may be mentioned the evil of Poverty. The institution of Property is upheld and commended principally as being the means by which labor and frugality are insured their reward, and mankind enabled [27]to emerge from indigence. It may be so; most Socialists allow that it has been so in earlier periods of history. But if the institution can do nothing more or better in this respect than it has hitherto done, its capabilities, they affirm, are very insignificant. What proportion of the population, in the most civilized countries of Europe, enjoy in their own persons anything worth naming of the benefits of property? It may be said, that but for property in the hands of their employers they would be without daily bread; but, though this be conceded, at least their daily bread is all that they have; and that often in insufficient quantity; almost always of inferior quality; and with no assurance of continuing to have it at all; an immense proportion of the industrious classes being at some period or other of their lives (and all being liable to become) dependent, at least temporarily, on legal or voluntary charity. Any attempt to depict the miseries of indigence, or to estimate the proportion of mankind who in the most advanced countries are habitually given up during their [28]whole existence to its physical and moral sufferings, would be superfluous here. This may be left to philanthropists, who have painted these miseries in colors sufficiently strong. Suffice it to say that the condition of numbers in civilized Europe, and even in England and France, is more wretched than that of most tribes of savages who are known to us.

First among the social evils we face today is Poverty. The institution of Property is mainly praised for ensuring that hard work and saving get rewarded, helping people [27]rise out of hardship. This could be true; many Socialists acknowledge it has been in the past. But if Property can’t provide more or better results than it has so far, they argue, its potential is quite limited. How many people in the most developed countries of Europe actually benefit from Property in any meaningful way? It could be said that without the property held by their employers, they wouldn't have food to eat; but even if we accept that, it’s clear that their daily meals are all they have, often not enough, usually of poor quality, and with no guarantee of having them in the future. A large number of working-class people rely at some point in their lives on charity, whether it’s legal aid or voluntary help. Any effort to highlight the suffering caused by poverty, or to assess how many people in the most advanced nations live their [28]entire lives in its physical and emotional pain, would be unnecessary here. That task can be left to philanthropists, who have vividly portrayed these hardships. It’s enough to say that the situation for many in civilized Europe, and even in England and France, is worse than that of most known tribes of so-called savages.

It may be said that of this hard lot no one has any reason to complain, because it befalls those only who are outstripped by others, from inferiority of energy or of prudence. This, even were it true, would be a very small alleviation of the evil. If some Nero or Domitian was to require a hundred persons to run a race for their lives, on condition that the fifty or twenty who came in hindmost should be put to death, it would not be any diminution of the injustice that the strongest or nimblest would, except through some untoward accident, be certain to escape. The misery and the crime would be that they were put to death at all. So in the economy of society; if there be any who suffer physical privation or [29]moral degradation, whose bodily necessities are either not satisfied or satisfied in a manner which only brutish creatures can be content with, this, though not necessarily the crime of society, is pro tanto a failure of the social arrangements. And to assert as a mitigation of the evil that those who thus suffer are the weaker members of the community, morally or physically, is to add insult to misfortune. Is weakness a justification of suffering? Is it not, on the contrary, an irresistible claim upon every human being for protection against suffering? If the minds and feelings of the prosperous were in a right state, would they accept their prosperity if for the sake of it even one person near them was, for any other cause than voluntary fault, excluded from obtaining a desirable existence?

It could be argued that nobody has any reason to complain about this tough situation, because it only affects those who are left behind due to a lack of energy or wisdom. Even if that were true, it wouldn’t do much to lessen the harm. If some Nero or Domitian demanded a hundred people to race for their lives, with the stipulation that the last fifty or twenty would be put to death, it wouldn’t make the injustice any less because the strongest or fastest would likely escape unless some unfortunate event occurred. The real misery and crime would be that anyone had to be put to death at all. Similarly, in the structure of society; if there are people who endure physical hardships or moral degradation, whose basic needs are either unmet or met in ways most animals could tolerate, this, while not necessarily the direct fault of society, shows a clear failure in social arrangements. To try to lessen the evil by saying that those who suffer are the weaker members of the community, either morally or physically, only adds insult to injury. Is weakness a valid reason for suffering? Isn’t it, in fact, a compelling reason for every person to protect those who are suffering? If the minds and feelings of the prosperous were in the right place, would they accept their success if it meant that even one person close to them was deprived of a good life for any reason other than their own voluntary actions?

One thing there is, which if it could be affirmed truly, would relieve social institutions from any share in the responsibility of these evils. Since the human race has no means of enjoyable existence, or of existence at all, but what it derives from its own labor and [30]abstinence, there would be no ground for complaint against society if every one who was willing to undergo a fair share of this labor and abstinence could attain a fair share of the fruits. But is this the fact? Is it not the reverse of the fact? The reward, instead of being proportioned to the labor and abstinence of the individual, is almost in an inverse ratio to it: those who receive the least, labor and abstain the most. Even the idle, reckless, and ill-conducted poor, those who are said with most justice to have themselves to blame for their condition, often undergo much more and severer labor, not only than those who are born to pecuniary independence, but than almost any of the more highly remunerated of those who earn their subsistence; and even the inadequate self-control exercised by the industrious poor costs them more sacrifice and more effort than is almost ever required from the more favored members of society. The very idea of distributive justice, or of any proportionality between success and merit, or between success and exertion, is in the present state of society so [31]manifestly chimerical as to be relegated to the regions of romance. It is true that the lot of individuals is not wholly independent of their virtue and intelligence; these do really tell in their favor, but far less than many other things in which there is no merit at all. The most powerful of all the determining circumstances is birth. The great majority are what they were born to be. Some are born rich without work, others are born to a position in which they can become rich by work, the great majority are born to hard work and poverty throughout life, numbers to indigence. Next to birth the chief cause of success in life is accident and opportunity. When a person not born to riches succeeds in acquiring them, his own industry and dexterity have generally contributed to the result; but industry and dexterity would not have sufficed unless there had been also a concurrence of occasions and chances which falls to the lot of only a small number. If persons are helped in their worldly career by their virtues, so are they, and perhaps quite as often, by their vices: by [32]servility and sycophancy, by hard-hearted and close-fisted selfishness, by the permitted lies and tricks of trade, by gambling speculations, not seldom by downright knavery. Energies and talents are of much more avail for success in life than virtues; but if one man succeeds by employing energy and talent in something generally useful, another thrives by exercising the same qualities in out-generalling and ruining a rival. It is as much as any moralist ventures to assert, that, other circumstances being given, honesty is the best policy, and that with parity of advantages an honest person has a better chance than a rogue. Even this in many stations and circumstances of life is questionable; anything more than this is out of the question. It cannot be pretended that honesty, as a means of success, tells for as much as a difference of one single step on the social ladder. The connection between fortune and conduct is mainly this, that there is a degree of bad conduct, or rather of some kinds of bad conduct, which suffices to ruin any amount of good fortune; but the converse is not true: in [33]the situation of most people no degree whatever of good conduct can be counted upon for raising them in the world, without the aid of fortunate accidents.

One thing that, if truly established, would free social institutions from any responsibility for these problems. Since humanity has no means of enjoying life, or even existing at all, other than what it gains from its own work and self-denial, there would be no reason to complain about society if everyone willing to put in a fair amount of work and self-restraint could achieve a fair share of the rewards. But is this actually the case? Is it not the opposite? The rewards, instead of being proportional to an individual's work and self-denial, are almost inversely related: those who receive the least often work and sacrifice the most. Even the idle, reckless, and poorly behaved poor, whom many believe justifiably have brought their situation upon themselves, often endure much more severe labor than those who are born into wealth, and even more than many of those who earn a good income; and the minimal self-control shown by the hardworking poor requires more sacrifice and effort than what is generally demanded from the more privileged members of society. The whole idea of distributive justice, or any proportional relationship between success and merit, or between success and effort, is so blatantly unrealistic in today’s society that it seems like a fantasy. It is true that individual circumstances are not completely disconnected from their virtue and intelligence; these factors do have an impact, but to a much lesser degree than many other elements that don't involve any merit at all. The most significant determining factor is birth. The vast majority of people end up as what they were born to be. Some are born rich without needing to work, others are born in a position where they can become wealthy through work, and most are destined for a lifetime of hard labor and poverty, with many facing extreme poverty. After birth, the next major cause of success in life is chance and opportunity. When someone not born into wealth manages to gain it, their own hard work and skill usually played a role; however, hard work and skill alone would not be enough without the added help of circumstances and opportunities that only a small number experience. If people's virtues assist them in their careers, then so do their vices: through servility and flattery, through cold-hearted and greedy selfishness, through the approved lies and tricks of business, through gambling schemes, and often through outright dishonesty. Energy and talent are much more useful for succeeding in life than virtues. But while one person may succeed by using energy and talent for something generally beneficial, another may thrive by using those same qualities to outsmart and undermine a competitor. Any moralist would only go so far as to claim that, under similar circumstances, honesty is the best policy, and that an honest person has a better chance than a dishonest one. Even this is questionable in many roles and life circumstances; anything more than that is out of the question. It cannot be claimed that honesty serves as a means to success nearly as much as a mere step up on the social ladder. The link between fortune and behavior mainly lies in the fact that there is a level of bad behavior, or rather certain types of bad behavior, which can completely ruin any amount of good fortune; however, the opposite is not true: in the case of most people, no degree of good behavior can be relied upon to elevate them in society without the help of fortunate occurrences.

These evils, then—great poverty, and that poverty very little connected with desert—are the first grand failure of the existing arrangements of society. The second is human misconduct; crime, vice, and folly, with all the sufferings which follow in their train. For, nearly all the forms of misconduct, whether committed towards ourselves or towards others, may be traced to one of three causes: Poverty and its temptations in the many; Idleness and desœuvrement in the few whose circumstances do not compel them to work; bad education, or want of education, in both. The first two must be allowed to be at least failures in the social arrangements, the last is now almost universally admitted to be the fault of those arrangements—it may almost be said the crime. I am speaking loosely and in the rough, for a minuter analysis of the sources of faults of character and errors of conduct [34]would establish far more conclusively the filiation which connects them with a defective organization of society, though it would also show the reciprocal dependence of that faulty state of society on a backward state of the human mind.

These problems—extreme poverty, which is often unrelated to personal merit—are the first major failure of our current social system. The second issue is human behavior: crime, vice, and foolishness, along with all the suffering that comes with them. Almost all forms of wrongdoing, whether directed at ourselves or others, can be traced back to one of three causes: poverty and its temptations for many; laziness and idleness for a few who aren't forced to work; and poor education or a lack of education for both. The first two can certainly be seen as failures of our social structure, while the last is now widely recognized as a consequence of that structure—it could almost be called a crime. I'm discussing this somewhat broadly because a detailed analysis of the root causes of character flaws and behavioral mistakes would more clearly show the link between these issues and the shortcomings of our society. However, it would also reveal how that flawed societal state relies on an underdeveloped state of the human mind.

At this point, in the enumeration of the evils of society, the mere levellers of former times usually stopped; but their more far-sighted successors, the present Socialists, go farther. In their eyes the very foundation of human life as at present constituted, the very principle on which the production and repartition of all material products is now carried on, is essentially vicious and anti-social. It is the principle of individualism, competition, each one for himself and against all the rest. It is grounded on opposition of interests, not harmony of interests, and under it every one is required to find his place by a struggle, by pushing others back or being pushed back by them. Socialists consider this system of private war (as it may be termed) between every one and every one, especially [35]fatal in an economical point of view and in a moral. Morally considered, its evils are obvious. It is the parent of envy, hatred, and all uncharitableness; it makes every one the natural enemy of all others who cross his path, and every one's path is constantly liable to be crossed. Under the present system hardly any one can gain except by the loss or disappointment of one or of many others. In a well-constituted community every one would be a gainer by every other person's successful exertions; while now we gain by each other's loss and lose by each other's gain, and our greatest gains come from the worst source of all, from death, the death of those who are nearest and should be dearest to us. In its purely economical operation the principle of individual competition receives as unqualified condemnation from the social reformers as in its moral. In the competition of laborers they see the cause of low wages; in the competition of producers the cause of ruin and bankruptcy; and both evils, they affirm, tend constantly to increase as population and wealth make [36]progress; no person (they conceive) being benefited except the great proprietors of land, the holders of fixed money incomes, and a few great capitalists, whose wealth is gradually enabling them to undersell all other producers, to absorb the whole of the operations of industry into their own sphere, to drive from the market all employers of labor except themselves, and to convert the laborers into a kind of slaves or serfs, dependent on them for the means of support, and compelled to accept these on such terms as they choose to offer. Society, in short, is travelling onward, according to these speculators, towards a new feudality, that of the great capitalists.

At this point in discussing the problems of society, the basic levelers of the past usually stopped; but their more forward-thinking successors, today's Socialists, push further. They believe that the very foundation of human life as it currently exists, the principle on which the production and distribution of all goods is based, is fundamentally flawed and anti-social. This principle is individualism, competition, where everyone looks out for themselves against everyone else. It rests on conflicting interests, not shared ones, and under this system, everyone has to carve out their place through struggle, either by pushing others down or being pushed down themselves. Socialists see this system of personal conflict (as it might be called) between individuals as particularly damaging from both an economic and a moral standpoint. Morally viewed, its harms are clear. It breeds envy, hatred, and lack of compassion; it turns everyone into a natural adversary of anyone who gets in their way, and everyone’s path is always at risk of being obstructed. Under the current system, hardly anyone can succeed without the loss or disappointment of someone else. In a well-functioning community, everyone would benefit from each other’s successes; but now we gain from each other's failures and lose from each other's victories, with our biggest gains often coming from the worst source of all—death, particularly the death of those who are closest and should be most dear to us. In purely economic terms, social reformers give the principle of individual competition as harsh a critique as they do in moral terms. They see the competition among workers as the cause of low wages; among producers, as the cause of destruction and bankruptcy; and both problems, they argue, continue to worsen as population and wealth make progress. They believe that no one truly benefits except the large landowners, those with fixed money incomes, and a few wealthy capitalists, whose growing wealth allows them to undercut all other producers, monopolize the entire industry, eliminate all other employers of labor, and turn workers into a sort of slaves or serfs, relying on them for survival and forced to accept whatever terms they decide to offer. In summary, society is moving toward a new feudalism, according to these analysts, led by the large capitalists.

As I shall have ample opportunity in future chapters to state my own opinion on these topics, and on many others connected with and subordinate to them, I shall now, without further preamble, exhibit the opinions of distinguished Socialists on the present arrangements of society, in a selection of passages from their published writings. For the present I desire to be considered as a mere reporter of the opinions of [37]others. Hereafter it will appear how much of what I cite agrees or differs with my own sentiments.

As I will have plenty of chances in upcoming chapters to share my own views on these subjects, as well as many related topics, I will now, without any more introduction, present the thoughts of notable Socialists regarding the current state of society, using excerpts from their published works. For now, I want to be seen as just a reporter of the opinions of [37]others. Later, it will be clear how much of what I mention aligns or conflicts with my own beliefs.

The clearest, the most compact, and the most precise and specific statement of the case of the Socialists generally against the existing order of society in the economical department of human affairs, is to be found in the little work of M. Louis Blanc, Organisation du Travail. My first extracts, therefore, on this part of the subject, shall be taken from that treatise.

The clearest, most compact, and most precise statement of the Socialists' overall case against the current social order in the economic aspect of human affairs can be found in M. Louis Blanc's short work, Organisation du Travail. Therefore, my initial excerpts on this topic will come from that treatise.

"Competition is for the people a system of extermination. Is the poor man a member of society, or an enemy to it? We ask for an answer.

"Competition is a system of elimination for the people. Is the poor man part of society or an enemy to it? We're looking for an answer."

"All around him he finds the soil preoccupied. Can he cultivate the earth for himself? No; for the right of the first occupant has become a right of property. Can he gather the fruits which the hand of God ripens on the path of man? No; for, like the soil, the fruits have been appropriated. Can he hunt or fish? No; for that is a right which is dependent upon the government. Can he draw water from a spring enclosed in a field? No; for the proprietor of the field is, in virtue of his right to the field, [38]proprietor of the fountain. Can he, dying of hunger and thirst, stretch out his hands for the charity of his fellow-creatures? No; for there are laws against begging. Can he, exhausted by fatigue and without a refuge, lie down to sleep upon the pavement of the streets? No; for there are laws against vagabondage. Can he, dying from the cruel native land where everything is denied him, seek the means of living far from the place where life was given him? No; for it is not permitted to change your country except on certain conditions which the poor man cannot fulfil.

"All around him, he sees the land occupied. Can he work the earth for himself? No; because the right of the first occupant has turned into a property right. Can he gather the fruits that God's hand ripens along man's path? No; because, like the soil, the fruits have been claimed. Can he hunt or fish? No; that's a right controlled by the government. Can he draw water from a spring located in a field? No; because the owner of the field is, by virtue of his right to the field, [38]the owner of the spring. Can he, starving and thirsty, reach out for the kindness of others? No; there are laws against begging. Can he, worn out from exhaustion and without shelter, lie down to sleep on the streets? No; there are laws against vagrancy. Can he, dying from the harsh conditions of his homeland where everything is denied to him, seek a way to survive far from the place where he was born? No; changing your country is only allowed under specific conditions that a poor person cannot meet."

"What, then, can the unhappy man do? He will say, 'I have hands to work with, I have intelligence, I have youth, I have strength; take all this, and in return give me a morsel of bread.' This is what the working-men do say. But even here the poor man may be answered, 'I have no work to give you.' What is he to do then?"

"What can the unhappy person do? They'll say, 'I have hands to work with, I have intelligence, I have youth, I have strength; take all this, and in return give me a piece of bread.' This is what the workers say. But even then, the poor person might be met with the response, 'I have no work to offer you.' So what are they supposed to do then?"


"What is competition from the point of view of the workman? It is work put up to auction. A contractor wants a workman: three present themselves.—How much for your work?—Half-a-crown; I have a wife and children.—Well; and how much for yours?—Two shillings: I have no children, but I have a wife.—Very well; and now how much for you?—One and eightpence are enough for me; I am single. Then you shall [39]have the work. It is done; the bargain is struck. And what are the other two workmen to do? It is to be hoped they will die quietly of hunger. But what if they take to thieving? Never fear; we have the police. To murder? We have got the hangman. As for the lucky one, his triumph is only temporary. Let a fourth workman make his appearance, strong enough to fast every other day, and his price will run down still lower; then there will be a new outcast, a new recruit for the prison perhaps!

What does competition look like for the worker? It's like their labor is up for bid. A contractor needs a worker, and three show up. "How much do you want for your work?" "Two and sixpence; I have a wife and kids." "And how about you?" "Two shillings; I have a wife but no kids." "Alright, what about you?" "One and eightpence is good for me; I'm single." So, the last worker gets the job. It's settled; the deal is made. But what happens to the other two workers? Hopefully, they'll quietly starve. But what if they turn to crime? No worries; we have the police for that. To murder? We have the hangman for that. As for the successful worker, their win is only short-lived. Let another worker show up, one who's tough enough to skip meals every other day, and their pay will drop even more, leading to another outcast—maybe even someone headed for prison!

"Will it be said that these melancholy results are exaggerated; that at all events they are only possible when there is not work enough for the hands that seek employment? But I ask, in answer, Does the principle of competition contain, by chance, within itself any method by which this murderous disproportion is to be avoided? If one branch of industry is in want of hands, who can answer for it that, in the confusion created by universal competition, another is not overstocked? And if, out of thirty-four millions of men, twenty are really reduced to theft for a living, this would suffice to condemn the principle.

"Is it going to be claimed that these sad outcomes are overstated; that they only happen when there aren't enough jobs for those looking for work? But I ask, in response, does the principle of competition actually have any way to prevent this deadly imbalance? If one industry needs workers, who can guarantee that, amidst the chaos of widespread competition, another isn’t oversaturated? And if, out of thirty-four million people, twenty are genuinely driven to steal to survive, that should be enough to discredit the principle."

"But who is so blind as not to see that under the system of unlimited competition, the continual fall of wages is no exceptional circumstance, but a necessary and general fact? Has the population a limit which it cannot exceed? Is [40]it possible for us to say to industry—industry given up to the accidents of individual egotism and fertile in ruin—can we say, 'Thus far shalt thou go, and no farther?' The population increases constantly: tell the poor mother to become sterile, and blaspheme the God who made her fruitful, for if you do not, the lists will soon become too narrow for the combatants. A machine is invented: command it to be broken, and anathematize science, for if you do not, the thousand workmen whom the new machine deprives of work will knock at the door of the neighboring workshop, and lower the wages of their companions. Thus systematic lowering of wages, ending in the driving out of a certain number of workmen, is the inevitable effect of unlimited competition. It is an industrial system by means of which the working-classes are forced to exterminate one another."

"But who is so blind as not to see that under the system of unlimited competition, the constant decline of wages is not an exception, but a necessary and widespread reality? Is there a limit to the population that we cannot exceed? Can we really tell industry—an industry left to the whims of personal greed, leading to destruction—'This far you can go, and no further'? The population keeps growing: should we tell the struggling mother to stop having children and curse the God who made her able to? Because if you don’t, soon there won’t be enough room for everyone in the competition. A new machine is created: should we order it to be destroyed and condemn science? Because if you don’t, the many workers that the new machine replaces will just go to the next workshop and push down their coworkers’ wages. Therefore, this systematic reduction of wages, which results in pushing some workers out, is the unavoidable consequence of unlimited competition. It’s an industrial system that forces the working class to compete against and destroy each other."


"If there is an undoubted fact, it is that the increase of population is much more rapid among the poor than among the rich. According to the Statistics of European Population, the births at Paris are only one-thirty-second of the population in the rich quarters, while in the others they rise to one-twenty-sixth. This disproportion is a general fact, and M. de Sismondi, in his work on Political Economy, has explained it by the impossibility for the workmen of hopeful [41]prudence. Those only who feel themselves assured of the morrow can regulate the number of their children according to their income; he who lives from day to day is under the yoke of a mysterious fatality, to which he sacrifices his children as he was sacrificed to it himself. It is true the workhouses exist, menacing society with an inundation of beggars—what way is there of escaping from the cause?... It is clear that any society where the means of subsistence increase less rapidly than the numbers of the population, is a society on the brink of an abyss.... Competition produces destitution; this is a fact shown by statistics. Destitution is fearfully prolific; this is shown by statistics. The fruitfulness of the poor throws upon society unhappy creatures who have need of work and cannot find it; this is shown by statistics. At this point society is reduced to a choice between killing the poor or maintaining them gratuitously—between atrocity or folly."[1]

"If there's one undeniable fact, it's that the population growth is much faster among the poor than the rich. According to the Statistics of European Population, the births in Paris's wealthy areas are just one-thirty-second of the population, while in the poorer areas, it's one-twenty-sixth. This imbalance is a common issue, and M. de Sismondi, in his work on Political Economy, explains it as the inability of workers to plan for the future. Only those who feel secure about tomorrow can adjust the number of their children to fit their income; those who live day-to-day are trapped in a mysterious fate, sacrificing their children just as they have been sacrificed. While workhouses exist, threatening society with an influx of beggars—what can be done about the cause? It's clear that any society where means of subsistence grow more slowly than the population is teetering on the edge of disaster. Competition leads to poverty; statistics prove this. Poverty breeds an alarming number of children; statistics back this up. The fertility of the poor creates a population in need of work that they can't find; this is also shown by statistics. At this point, society is faced with a choice between exterminating the poor or supporting them without charges—between cruelty or foolishness." [1]

So much for the poor. We now pass to the middle classes.

So much for the poor. Now, let's move on to the middle class.

"According to the political economists of the school of Adam Smith and Leon Say, cheapness is the word in which may be summed up the [42]advantages of unlimited competition. But why persist in considering the effect of cheapness with a view only to the momentary advantage of the consumer? Cheapness is advantageous to the consumer at the cost of introducing the seeds of ruinous anarchy among the producers. Cheapness is, so to speak, the hammer with which the rich among the producers crush their poorer rivals. Cheapness is the trap into which the daring speculators entice the hard-workers. Cheapness is the sentence of death to the producer on a small scale who has no money to invest in the purchase of machinery that his rich rivals can easily procure. Cheapness is the great instrument in the hands of monopoly; it absorbs the small manufacturer, the small shopkeeper, the small proprietor; it is, in one word, the destruction of the middle classes for the advantage of a few industrial oligarchs.

According to the political economists from the school of Adam Smith and Leon Say, cheapness sums up the [42]benefits of unlimited competition. But why keep focusing on the impact of cheapness only for the short-term benefit of the consumer? Cheapness helps consumers at the expense of causing chaos among the producers. Cheapness is like the hammer that wealthy producers use to crush their poorer competitors. Cheapness is the trap that ambitious speculators set for hard-working individuals. Cheapness is a death sentence for small-scale producers who can’t invest in the machinery that their wealthy competitors can easily afford. Cheapness is a powerful tool for monopolies; it swallows up small manufacturers, small shopkeepers, and small property owners; it is, in short, the undoing of the middle class for the benefit of a few industrial elites.

"Ought we, then, to consider cheapness as a curse? No one would attempt to maintain such an absurdity. But it is the specialty of wrong principles to turn good into evil and to corrupt all things. Under the system of competition cheapness is only a provisional and fallacious advantage. It is maintained only so long as there is a struggle; no sooner have the rich competitors driven out their poorer rivals than prices rise. Competition leads to monopoly, for the same reason cheapness leads to high prices. [43]Thus, what has been made use of as a weapon in the contest between the producers, sooner or later becomes a cause of impoverishment among the consumers. And if to this cause we add the others we have already enumerated, first among which must be ranked the inordinate increase of the population, we shall be compelled to recognize the impoverishment of the mass of the consumers as a direct consequence of competition.

"Ought we, then, to see cheapness as a curse? No one would try to argue that it is. But it's typical of flawed principles to turn good into bad and to corrupt everything. In a competitive system, cheapness is just a temporary and misleading advantage. It lasts only as long as there's a struggle; once the wealthier competitors eliminate their poorer rivals, prices go up. Competition leads to monopoly, just as cheapness leads to higher prices. [43]So, what started as a tool in the battle between producers ultimately becomes a source of hardship for consumers. And if we consider this factor alongside the others we've already mentioned, especially the excessive growth of the population, we have to acknowledge that the decline in the well-being of the majority of consumers is a direct result of competition."

"But, on the other hand, this very competition which tends to dry up the sources of demand, urges production to over-supply. The confusion produced by the universal struggle prevents each producer from knowing the state of the market. He must work in the dark, and trust to chance for a sale. Why should he check the supply, especially as he can throw any loss on the workman whose wages are so pre-eminently liable to rise and fall? Even when production is carried on at a loss the manufacturers still often carry it on, because they will not let their machinery, &c., stand idle, or risk the loss of raw material, or lose their customers; and because productive industry as carried on under the competitive system being nothing else than a game of chance, the gambler will not lose his chance of a lucky stroke.

"But, on the other hand, this very competition that tends to dry up the sources of demand also pushes production to over-supply. The confusion created by the universal struggle prevents each producer from knowing the state of the market. They have to work in the dark and rely on luck for a sale. Why should they limit the supply, especially since they can pass any losses onto the workers whose wages can easily go up and down? Even when production is running at a loss, manufacturers often keep it going because they don’t want their machinery, etc., to sit idle, risk losing raw materials, or lose their customers; and because productive industry under the competitive system is really just a gamble, the gambler doesn’t want to miss their chance for a lucky break."

"Thus, and we cannot too often insist upon it, competition necessarily tends to increase supply and to diminish consumption; its tendency [44]therefore is precisely the opposite of what is sought by economic science; hence it is not merely oppressive but foolish as well."

"Therefore, and we can't stress this enough, competition naturally leads to an increase in supply and a decrease in consumption; its effect [44] is exactly the opposite of what economic theory aims for; thus, it is not only burdensome but also unwise."


"And in all this, in order to avoid dwelling on truths which have become commonplaces, and sound declamatory from their very truth, we have said nothing of the frightful moral corruption which industry, organized, or more properly speaking, disorganized, as it is at the present day, has introduced among the middle classes. Everything has become venal, and competition invades even the domain of thought.

"And in all this, to avoid focusing on truths that have become clichés and sound overly dramatic because they’re so true, we haven't mentioned the terrible moral decay that industry, organized—or more accurately, disorganized, as it is today—has brought about among the middle classes. Everything has become for sale, and competition has even seeped into the realm of ideas."

"The factory crushing the workshop; the showy establishment absorbing the humble shop; the artisan who is his own master replaced by the day-laborer; cultivation by the plow superseding that by the spade, and bringing the poor man's field under disgraceful homage to the money-lender; bankruptcies multiplied; manufacturing industry transformed by the ill-regulated extension of credit into a system of gambling where no one, not even the rogue, can be sure of winning; in short a vast confusion calculated to arouse jealousy, mistrust, and hatred, and to stifle, little by little, all generous aspirations, all faith, self-sacrifice, and poetry—such is the hideous but only too faithful picture of the [45]results obtained by the application of the principle of competition."[2]

"The factory overwhelming the workshop; the flashy establishment taking over the modest shop; the artisan who works for himself replaced by the day laborer; farming with a plow replacing farming with a spade, bringing the poor man’s field into disgraceful dependence on the money lender; bankruptcies increasing; manufacturing transformed by poorly regulated credit into a gambling system where no one, not even the crook, can be sure of winning; in short, a massive confusion designed to stir up jealousy, mistrust, and hatred, and to gradually stifle all noble aspirations, all faith, self-sacrifice, and creativity—this is the ugly but painfully accurate picture of the [45]results from applying the principle of competition."[2]

The Fourierists, through their principal organ, M. Considérant, enumerate the evils of the existing civilisation in the following order:—

The Fourierists, led by their main spokesperson, M. Considérant, list the problems of current civilization in this order:—

1. It employs an enormous quantity of labor and of human power unproductively, or in the work of destruction.

1. It uses a huge amount of labor and human effort unproductively, or for destructive work.

"In the first place there is the army, which in France, as in all other countries, absorbs the healthiest and strongest men, a large number of the most talented and intelligent, and a considerable part of the public revenue.... The existing state of society develops in its impure atmosphere innumerable outcasts, whose labor is not merely unproductive, but actually destructive: adventurers, prostitutes, people with no acknowledged means of living, beggars, convicts, swindlers, thieves, and others whose numbers tend rather to increase than to diminish....

"In the first place, there's the army, which in France, just like in other countries, takes in the healthiest and strongest men, a significant number of the most talented and intelligent, and a notable amount of public revenue.... The current state of society fosters in its polluted atmosphere countless outcasts whose work is not only unproductive but also harmful: adventurers, sex workers, people without recognized means of living, beggars, prisoners, con artists, thieves, and others whose numbers tend to grow rather than shrink...."

"To the list of unproductive labor fostered by our state of Society must be added that of the judicature and of the bar, of the courts of law and magistrates, the police, jailers, executioners, &c.,—functions indispensable to the state of society as it is.

"To the list of unproductive labor supported by our current society, we must include the judiciary and the legal profession, the courts and magistrates, the police, jailers, executioners, etc.—functions essential to the state of society as it exists."

[46]"Also people of what is called 'good society'; those who pass their lives in doing nothing; idlers of all ranks.

[46]"Also, the people in what’s known as ‘high society’; those who spend their lives doing nothing; idlers of every level.

"Also the numberless custom-house officials, tax-gatherers, bailiffs, excise-men; in short, all that army of men which overlooks, brings to account, takes, but produces nothing.

"Also the countless customs officials, tax collectors, bailiffs, excise men; in short, all that army of people who monitor, hold accountable, take, but produce nothing."

"Also the labors of sophists, philosophers, metaphysicians, political men, working in mistaken directions, who do nothing to advance science, and produce nothing but disturbance and sterile discussions; the verbiage of advocates, pleaders, witnesses, &c.

"Also the efforts of sophists, philosophers, metaphysicians, and politicians, who are pursuing the wrong paths, contribute nothing to the advancement of science and create only confusion and unproductive debates; the jargon of lawyers, advocates, witnesses, etc."

"And finally all the operations of commerce, from those of the bankers and brokers, down to those of the grocer behind his counter."[3]

"And finally, all the activities of trade, from the bankers and brokers to the grocer behind his counter."[3]

Secondly, they assert that even the industry and powers which in the present system are devoted to production, do not produce more than a small portion of what they might produce if better employed and directed:—

Secondly, they claim that even the industries and powers currently focused on production are only generating a small fraction of what they could produce if they were utilized and managed more effectively:—

"Who with any good-will and reflection will not see how much the want of coherence—the disorder, the want of combination, the parcelling out of labor and leaving it wholly to individual action without any organization, without any [47]large or general views—are causes which limit the possibilities of production, and destroy, or at least waste, our means of action? Does not disorder give birth to poverty, as order and good management give birth to riches? Is not want of combination a source of weakness, as combination is a source of strength? And who can say that industry, whether agricultural, domestic, manufacturing, scientific, artistic, or commercial, is organized at the present day either in the state or in municipalities? Who can say that all the work which is carried on in any of these departments is executed in subordination to any general views, or with foresight, economy, and order? Or, again, who can say that it is possible in our present state of society to develop, by a good education, all the faculties bestowed by nature on each of its members; to employ each one in functions which he would like, which he would be the most capable of, and which, therefore, he could carry on with the greatest advantage to himself and to others? Has it even been so much as attempted to solve the problems presented by varieties of character so as to regulate and harmonize the varieties of employments in accordance with natural aptitudes? Alas! The Utopia of the most ardent philanthropists is to teach reading and writing to twenty-five millions of the French people! And in the present state [48]of things we may defy them to succeed even in that!

"Who, with any goodwill and consideration, can’t see how much the lack of coherence—the chaos, the absence of organization, the division of labor that leaves everything up to individual efforts without any structure, no [47]big-picture thinking—limits production capabilities and either destroys or at least wastes our means of action? Doesn’t disorder lead to poverty, while order and good management lead to wealth? Isn’t the lack of coordination a source of weakness, whereas coordination is a source of strength? And who can say that industry, whether in agriculture, household duties, manufacturing, science, the arts, or commerce, is organized today either at the state or municipal level? Who can say that all the work being done in any of these fields is carried out in alignment with a general plan or with foresight, efficiency, and structure? Or, who can say that in our current society it’s possible to develop, through proper education, all the abilities nature has given each person; to engage everyone in jobs they would enjoy, that they’d be best suited for, and that would therefore benefit both themselves and others the most? Has anyone even tried to tackle the challenges posed by different personalities to organize and harmonize various jobs based on natural talents? Unfortunately! The dream of the most passionate philanthropists is to teach reading and writing to twenty-five million French citizens! And in the current [48]state of affairs, we can confidently challenge them to even succeed at that!"

"And is it not a strange spectacle, too, and one which cries out in condemnation of us, to see this state of society where the soil is badly cultivated, and sometimes not cultivated at all; where man is ill lodged, ill clothed, and yet where whole masses are continually in need of work and pining in misery because they cannot find it? Of a truth we are forced to acknowledge that if the nations are poor and starving it is not because nature has denied the means of producing wealth, but because of the anarchy and disorder in our employment of those means; in other words, it is because society is wretchedly constituted and labor unorganized.

"And isn’t it a strange sight, too, one that clearly shows our failures, to see a society where the land is poorly farmed, and sometimes not farmed at all; where people live in bad conditions and wear ragged clothes, yet whole groups are always in desperate need of work and suffering because they can’t find it? The truth is we have to accept that if nations are poor and starving, it’s not because nature hasn’t provided the resources to create wealth, but because of the chaos and disorganization in how we use those resources; in other words, it’s because society is badly structured and labor is disorganized."

"But this is not all, and you will have but a faint conception of the evil if you do not consider that to all these vices of society, which dry up the sources of wealth and prosperity, must be added the struggle, the discord, the war, in short under many names and many forms which society cherishes and cultivates between the individuals that compose it. These struggles and discords correspond to radical oppositions—deep-seated antinomies between the various interests. Exactly in so far as you are able to establish classes and categories within the nation; in so far, also, you will have opposition of interests and internal warfare either avowed or secret, even if you [49]take into consideration the industrial system only."[4]

"But that's not all, and you'll only get a glimpse of the problem if you don't consider that to all these social vices, which drain wealth and prosperity, we must also add the struggle, the conflict, and wars, in many names and forms that society nurtures and tolerates among its members. These conflicts and struggles correspond to deep, fundamental oppositions—stark contradictions between different interests. The more you establish classes and categories within the nation, the more you'll find opposing interests and internal battles, whether they are out in the open or hidden, even if you only look at the industrial system." [49] [4]

One of the leading ideas of this school is the wastefulness and at the same time the immorality of the existing arrangements for distributing the produce of the country among the various consumers, the enormous superfluity in point of number of the agents of distribution, the merchants, dealers, shopkeepers and their innumerable, employés, and the depraving character of such a distribution of occupations.

One of the main ideas of this school is how wasteful and at the same time immoral the current system for distributing the country’s produce among different consumers is. There are way too many people involved in distribution, including merchants, dealers, shopkeepers, and their countless employees, which creates a corrupting effect in how jobs are distributed.

"It is evident that the interest of the trader is opposed to that of the consumer and of the producer. Has he not bought cheap and under-valued as much as possible in all his dealings with the producer, the very same article which, vaunting its excellence, he sells to you as dear as he can? Thus the interest of the commercial body, collectively and individually, is contrary to that of the producer and of the consumer—that is to say, to the interest of the whole body of society.

"It’s clear that the trader's interests clash with those of the consumer and the producer. Hasn’t he purchased as cheaply and undervalued as possible in all his transactions with the producer, the very same product that he touts as high quality, selling it to you for as much as he can? Therefore, the interests of the commercial sector, both as a whole and individually, are against those of the producer and the consumer—that is to say, against the interests of society as a whole."


"The trader is a go-between, who profits by the general anarchy and the non-organization of [50]industry. The trader buys up products, he buys up everything; he owns and detains everything, in such sort that:—

"The trader acts as a middleman, making money from the overall chaos and disorganization of [50] industry. The trader purchases products; he buys everything; he owns and holds onto everything, in such a way that:—

"1stly. He holds both Production and Consumption under his yoke, because both must come to him either finally for the products to be consumed, or at first for the raw materials to be worked up. Commerce with all its methods of buying, and of raising and lowering prices, its innumerable devices, and its holding everything in the hands of middle-men, levies toll right and left; it despotically gives the law to Production and Consumption, of which it ought to be only the subordinate.

"Firstly, he controls both Production and Consumption, because both ultimately need him—either for the final products to be consumed or initially for the raw materials to be processed. Commerce, with all its ways of buying, fluctuating prices, countless strategies, and its control by middlemen, takes its cut everywhere; it imposes rules on Production and Consumption, which should only be its subservient aspects."

"2ndly. It robs society by its enormous profits—profits levied upon the consumer and the producer, and altogether out of proportion to the services rendered, for which a twentieth of the persons actually employed would be sufficient.

"Secondly, it takes from society through its huge profits—profits taken from both the consumer and the producer, and completely out of proportion to the services provided, as a twentieth of the people actually working would be enough."

"3rdly. It robs society by the subtraction of its productive forces; taking off from productive labor nineteen-twentieths of the agents of trade who are mere parasites. Thus, not only does commerce rob society by appropriating an exorbitant share of the common wealth, but also by considerably diminishing the productive energy of the human beehive. The great majority of traders would return to productive work if a rational system of commercial organization were [51]substituted for the inextricable chaos of the present state of things.

"3rdly. It takes away from society by reducing its productive forces; it removes nineteen out of twenty agents of trade who are just parasites. Therefore, not only does commerce steal from society by claiming an excessive portion of the common wealth, but it also significantly weakens the productive energy of the human beehive. Most traders would go back to productive work if a sensible system of commercial organization were [51] put in place instead of the current chaotic situation."

"4thly. It robs society by the adulteration of products, pushed at the present day beyond all bounds. And in fact, if a hundred grocers establish themselves in a town where before there were only twenty, it is plain that people will not begin to consume five times as many groceries. Hereupon the hundred virtuous grocers have to dispute between them the profits which before were honestly made by the twenty; competition obliges them to make it up at the expense of the consumer, either by raising the prices as sometimes happens, or by adulterating the goods as always happens. In such a state of things there is an end to good faith. Inferior or adulterated goods are sold for articles of good quality whenever the credulous customer is not too experienced to be deceived. And when the customer has been thoroughly imposed upon, the trading conscience consoles itself by saying, 'I state my price; people can take or leave; no one is obliged to buy.' The losses imposed on the consumers by the bad quality or the adulteration of goods are incalculable.

"4thly. It harms society by the adulteration of products, which is pushed to extremes today. In fact, if a hundred grocers open shop in a town that had only twenty before, it’s clear that people won’t start buying five times as many groceries. As a result, the hundred competing grocers have to fight over the profits that the twenty previously earned fairly; competition forces them to make up the difference at the consumer's expense, either by raising prices, which sometimes happens, or by adulterating the goods, which happens all the time. In this scenario, good faith disappears. Inferior or adulterated goods are sold as high-quality items whenever the unsuspecting customer isn’t savvy enough to recognize the deception. And when customers are thoroughly cheated, the conscience of the trader eases itself by saying, 'I state my price; people can take it or leave it; no one is obliged to buy.' The financial losses inflicted on consumers due to poor quality or adulterated goods are immeasurable."

"5thly. It robs society by accumulations, artificial or not, in consequence of which vast quantities of goods, collected in one place, are damaged and destroyed for want of a sale. Fourier (Th. des Quat. Mouv., p. 334, 1st ed.) says: 'The [52]fundamental principle of the commercial systems, that of leaving full liberty to the merchants, gives them absolute right of property over the goods in which they deal: they have the right to withdraw them altogether, to withhold or even to burn them, as happened more than once with the Oriental Company of Amsterdam, which publicly burnt stores of cinnamon in order to raise the price. What it did with cinnamon it would have done with corn; but for the fear of being stoned by the populace, it would have burnt some corn in order to sell the rest at four times its value. Indeed, it actually is of daily occurrence in ports, for provisions of grains to be thrown into the sea because the merchants have allowed them to rot while waiting for a rise. I myself, when I was a clerk, have had to superintend these infamous proceedings, and in one day caused to be thrown into the sea some forty thousand bushels of rice, which might have been sold at a fair profit had the withholder been less greedy of gain. It is society that bears the cost of this waste, which takes place daily under shelter of the philosophical maxim of full liberty for the merchants.'

"5thly. It harms society through accumulations, whether artificial or not, resulting in large quantities of goods, gathered in one location, being damaged and destroyed due to lack of sales. Fourier (Th. des Quat. Mouv., p. 334, 1st ed.) states: 'The [52] fundamental principle of commercial systems, which advocates for full freedom for merchants, gives them complete ownership rights over the goods they handle: they have the right to remove them entirely, to withhold, or even to burn them, as occurred several times with the Oriental Company of Amsterdam, which publicly burned stocks of cinnamon to inflate the price. What they did with cinnamon, they would have done with corn; had they not feared being attacked by the public, they would have burned some corn to sell the remainder at four times its value. In fact, it's a common occurrence at ports for grain supplies to be tossed into the sea because the merchants let them spoil while waiting for prices to rise. I myself, when I worked as a clerk, had to oversee these disgraceful actions, and in one day, I had to dispose of about forty thousand bushels of rice, which could have been sold for a reasonable profit if the hoarder had been less greedy. It is society that pays for this waste, which happens daily under the guise of the philosophical principle of full freedom for merchants.'

"6thly. Commerce robs society, moreover, by all the loss, damage, and waste that follows from the extreme scattering of products in millions of shops, and by the multiplication and complication of carriage.

"6thly. Commerce takes away from society by the loss, damage, and waste that comes from the extreme distribution of products in millions of stores, and by the increased complexity of transportation."

[53]"7thly. It robs society by shameless and unlimited usury—usury absolutely appalling. The trader carries on operations with fictitious capital, much higher in amount than his real capital. A trader with a capital of twelve hundred pounds will carry on operations, by means of bills and credit, on a scale of four, eight, or twelve thousand pounds. Thus he draws from capital which he does not possess, usurious interest, out of all proportion with the capital he actually owns.

[53]"7thly. It undermines society through shameless and excessive usury—usury that is truly shocking. The trader conducts business with inflated capital, significantly greater than his actual capital. A trader with twelve hundred pounds will engage in transactions worth four, eight, or twelve thousand pounds, using bills and credit. In this way, he draws usurious interest from capital that he doesn’t actually have, which is completely out of proportion to the capital he truly owns.

"8thly. It robs society by innumerable bankruptcies, for the daily accidents of our commercial system, political events, and any kind of disturbance, must usher in a day when the trader, having incurred obligations beyond his means, is no longer able to meet them; his failure, whether fraudulent or not, must be a severe blow to his creditors. The bankruptcy of some entails that of others, so that bankruptcies follow one upon another, causing widespread ruin. And it is always the producer and the consumer who suffer; for commerce, considered as a whole, does not produce wealth, and invests very little in proportion to the wealth which passes through its hands. How many are the manufactures crushed by these blows! how many fertile sources of wealth dried up by these devices, with all their disastrous consequences!

"8thly. It harms society through countless bankruptcies, as the daily challenges of our commercial system, political events, and various disturbances inevitably lead to a day when a trader, having taken on debts beyond their capacity, can no longer fulfill them; their failure, whether intentional or not, is a serious setback for their creditors. One bankruptcy often leads to another, creating a chain reaction of financial collapse that results in widespread devastation. It's always the producers and consumers who bear the brunt of this; because commerce, taken as a whole, does not create wealth and invests very little compared to the wealth that flows through it. How many businesses are crushed by these setbacks! How many potential sources of wealth are extinguished by these practices, with all their terrible consequences!"

"The producer furnishes the goods, the consumer the money. Trade furnishes credit, [54]founded on little or no actual capital, and the different members of the commercial body are in no way responsible for one another. This, in a few words, is the whole theory of the thing.

"The producer provides the goods, while the consumer provides the money. Trade creates credit, [54] based on little or no actual capital, and the various members of the commercial community are not responsible for each other in any way. This sums up the entire theory in a nutshell."

"9thly. Commerce robs society by the independence and irresponsibility which permits it to buy at the epochs when the producers are forced to sell and compete with one another, in order to procure money for their rent and necessary expenses of production. When the markets are overstocked and goods cheap, trade purchases. Then it creates a rise, and by this simple manœuvre despoils both producer and consumer.

"9thly. Commerce takes advantage of society through the independence and irresponsibility it has, allowing it to buy when producers are forced to sell and compete with one another to cover their rent and essential production costs. When the markets are flooded and goods are cheap, trade buys up the stock. Then it causes prices to rise, and with this simple tactic, it exploits both producers and consumers."

"10thly. It robs society by a considerable drawing off of capital, which will return to productive industry when commerce plays its proper subordinate part, and is only an agency carrying on transactions between the producers (more or less distant) and the great centres of consumption—the communistic societies. Thus the capital engaged in the speculations of commerce (which, small as it is, compared to the immense wealth which passes through its hands, consists nevertheless of sums enormous in themselves), would return to stimulate production if commerce was deprived of the intermediate property in goods, and their distribution became a matter of administrative organization. Stock-jobbing is the most odious form of this vice of commerce.

"10thly. It takes a lot from society by significantly drawing off capital, which would go back to productive industries when commerce plays its appropriate supporting role, serving merely as a means to facilitate transactions between producers (who may be far apart) and the major consumption centers—the communal societies. Therefore, the capital involved in commercial speculations (which, although small compared to the vast wealth that flows through it, still amounts to huge sums on their own) would return to boost production if commerce were stripped of its intermediate ownership of goods, and their distribution was managed through an administrative system. Stock trading is the most reprehensible form of this commercial vice."

[55]"11thly. It robs society by the monopolising or buying up of raw materials. 'For' (says Fourier, Th. des Quat. Mouv., p. 359, 1st ed.), 'the rise in price on articles that are bought up, is borne ultimately by the consumer, although in the first place by the manufacturers, who, being obliged to keep up their establishments, must make pecuniary sacrifices, and manufacture at small profits in the hope of better days; and it is often long before they can repay themselves the rise in prices which the monopoliser has compelled them to support in the first instance...."

[55] "11thly. It takes away from society by monopolizing or buying up raw materials. 'For' (says Fourier, Th. des Quat. Mouv., p. 359, 1st ed.), 'the increase in price on items that are bought up is ultimately paid by the consumer, although initially, it falls on the manufacturers who, being forced to maintain their businesses, must make financial sacrifices and produce at low profits in the hope of better days; and it often takes a long time before they can recover the price increase that the monopolizer has forced them to endure in the first place...."

"In short, all these vices, besides many others which I omit, are multiplied by the extreme complication of mercantile affairs; for products do not pass once only through the greedy clutches of commerce; there are some which pass and repass twenty or thirty times before reaching the consumer. In the first place, the raw material passes through the grasp of commerce before reaching the manufacturer who first works it up; then it returns to commerce to be sent out again to be worked up in a second form; and so on until it receives its final shape. Then it passes into the hands of merchants, who sell to the wholesale dealers, and these to the great retail dealers of towns, and these again to the little dealers and to the country shops; and each time that it changes hands, it leaves something behind it.

"In short, all these vices, along with many others that I won't mention, are amplified by the extreme complexity of commercial activities; products don’t just pass through the greedy hands of commerce once; some go through twenty or thirty exchanges before reaching the consumer. First, the raw material goes into the hands of commerce before it gets to the manufacturer who processes it; then it returns to commerce to be sent out again for further processing; and this continues until it takes its final form. After that, it goes to merchants, who sell to wholesale dealers, and those to the large retail sellers in towns, and then to small retailers and country shops; and every time it changes hands, it leaves something behind."

[56]"... One of my friends who was lately exploring the Jura, where much working in metal is done, had occasion to enter the house of a peasant who was a manufacturer of shovels. He asked the price. 'Let us come to an understanding,' answered the poor laborer, not an economist at all, but a man of common sense; 'I sell them for 8d. to the trade, which retails them at 1s. 8d. in the towns. If you could find a means of opening a direct communication between the workman and the consumer, you might have them for 1s. 2d., and we should each gain 6d. by the transaction.'"[5]

[56]"... One of my friends who was recently exploring the Jura, where a lot of metal work is done, had the chance to visit the home of a peasant who made shovels. He asked about the price. 'Let's come to an agreement,' replied the poor laborer, who wasn’t an economist but a sensible person; 'I sell them for 8d. to wholesalers, who then sell them at 1s. 8d. in the towns. If you could figure out a way to connect the worker directly with the consumer, you could get them for 1s. 2d., and we would both profit by 6d. in the deal.'"[5]

To a similar effect Owen, in the Book of the New Moral World, part 2, chap. iii.

To a similar effect, Owen, in the Book of the New Moral World, part 2, chap. iii.

"The principle now in practice is to induce a large portion of society to devote their lives to distribute wealth upon a large, a medium, and a small scale, and to have it conveyed from place to place in larger or smaller quantities, to meet the means and wants of various divisions of society and individuals, as they are now situated in cities, towns, villages, and country places. This principle of distribution makes a class in society whose business is to buy from some parties and to sell to others. By this proceeding they are placed under circumstances which [57]induce them to endeavor to buy at what appears at the time a low price in the market, and to sell again at the greatest permanent profit which they can obtain. Their real object being to get as much profit as gain between the seller to, and the buyer from them, as can be effected in their transactions.

"The current approach is to encourage a significant number of people in society to dedicate their lives to distributing wealth on large, medium, and small scales, transferring it from one place to another in varying quantities to meet the needs of different segments of society and individuals, as they exist in cities, towns, villages, and rural areas. This distribution principle creates a class in society whose role is to buy from certain parties and sell to others. By doing this, they find themselves in situations which [57] motivate them to try to purchase at what seems like a low price in the market and sell at the highest consistent profit they can achieve. Their true goal is to maximize the profit they make from the difference between what they buy and what they sell."

"There are innumerable errors in principle and evils in practice which necessarily proceed from this mode of distributing the wealth of society.

"There are countless mistakes in principle and wrongs in practice that inevitably arise from this way of distributing society's wealth."

"1st. A general class of distributers is formed, whose interest is separated from, and apparently opposed to, that of the individual from whom they buy and to whom they sell.

"1st. A general group of distributors is created, whose interests are distinct from and seem to conflict with those of the individuals they purchase from and sell to."

"2nd. Three classes of distributers are made, the small, the medium, and the large buyers and sellers; or the retailers, the wholesale dealers, and the extensive merchants.

"2nd. There are three types of distributors: small, medium, and large buyers and sellers; or retailers, wholesale dealers, and large-scale merchants."

"3rd. Three classes of buyers thus created constitute the small, the medium, and the large purchasers.

"3rd. Three types of buyers have been created: small, medium, and large purchasers."

"By this arrangement into various classes of buyers and sellers, the parties are easily trained to learn that they have separate and opposing interests, and different ranks and stations in society. An inequality of feeling and condition is thus created and maintained, with all the servility and pride which these unequal arrangements are sure to produce. The parties are regularly trained in a general system of deception, [58]in order that they may be the more successful in buying cheap and selling dear.

"By organizing into different groups of buyers and sellers, the parties quickly realize that they have distinct and conflicting interests, along with various levels of status in society. This creates and sustains a sense of inequality, leading to all the servility and pride that such disparities inevitably foster. The parties are systematically trained in a general method of deception, [58] so they can be more successful at buying low and selling high."

"The smaller sellers acquire habits of injurious idleness, waiting often for hours for customers. And this evil is experienced to a considerable extent even amongst the class of wholesale dealers.

"The smaller sellers develop habits of harmful idleness, often waiting for hours for customers. This issue is also noticeably felt among wholesale dealers."

"There are, also, by this arrangement, many more establishments for selling than are necessary in the villages, towns, and cities; and a very large capital is thus wasted without benefit to society. And from their number opposed to each other all over the country to obtain customers, they endeavor to undersell each other, and are therefore continually endeavoring to injure the producer by the establishment of what are called cheap shops and warehouses; and to support their character the master or his servants must be continually on the watch to buy bargains, that is, to procure wealth for less than the cost of its production.

"There are also many more retail stores than needed in villages, towns, and cities due to this setup, leading to a significant amount of capital being wasted without benefiting society. Competing against each other across the country for customers, they try to undercut one another, which often harms the producers by creating what are called discount shops and warehouses. To maintain their reputation, the owner or their employees must constantly look for bargains, meaning they need to acquire goods for less than what it costs to produce them."

"The distributers, small, medium, and large, have all to be supported by the producers, and the greater the number of the former compared with the latter, the greater will be the burden which the producer has to sustain; for as the number of distributers increases, the accumulation of wealth must decrease, and more must be required from the producer.

"The distributors, whether small, medium, or large, all need support from the producers. The more distributors there are compared to producers, the heavier the burden on the producer will be. As the number of distributors grows, the accumulation of wealth is likely to decrease, leading to more demands on the producer."

"The distributers of wealth, under the present [59]system, are a dead weight upon the producers, and are most active demoralisers of society. Their dependent condition, at the commencement of their task, teaches or induces them to be servile to their customers, and to continue to be so as long as they are accumulating wealth by their cheap buying and dear selling. But when they have secured sufficient to be what they imagine to be an independence—to live without business—they are too often filled with a most ignorant pride, and become insolent to their dependents.

"The distributors of wealth, under the current [59] system, are a burden on the producers and often demoralize society. Their dependent status at the start of their work makes them servile to their customers, and they stay that way as long as they are accumulating wealth through low buying and high selling. However, once they have enough to feel what they think is independence—enough to live without working—they often develop a misguided sense of pride and become arrogant toward those who depend on them."

"The arrangement is altogether a most improvident one for society, whose interest it is to produce the greatest amount of wealth of the best qualities; while the existing system of distribution is not only to withdraw great numbers from producing to become distributers, but to add to the cost of the consumer all the expense of a most wasteful and extravagant distribution; the distribution costing to the consumer many times the price of the original cost of the wealth purchased.

"The setup is incredibly unwise for society, which should aim to generate the most wealth of the highest quality; meanwhile, the current distribution system not only takes many people away from production to become distributors but also increases the cost for consumers by adding all the expenses of a highly inefficient and extravagant distribution process, making the distribution cost consumers several times more than the original price of the wealth purchased."

"Then, by the position in which the seller is placed by his created desire for gain on the one hand, and the competition he meets with from opponents selling similar productions on the other, he is strongly tempted to deteriorate the articles which he has for sale; and when these are provisions, either of home production or of foreign importation, the effects upon the health, [60]and consequent comfort and happiness of the consumers, are often most injurious, and productive of much premature death, especially among the working classes, who, in this respect, are perhaps made to be the greatest sufferers, by purchasing the inferior or low-priced articles.

"Then, due to the seller's desire to make a profit on one hand and the competition from others selling similar products on the other, they are strongly tempted to lower the quality of the items they offer. When these items are food, whether made locally or imported, the impact on the health, [60] and overall comfort and happiness of consumers can be very harmful, often leading to premature deaths, particularly among the working class, who tend to suffer the most by buying cheaper or lower-quality products."


"The expense of thus distributing wealth in Great Britain and Ireland, including transit from place to place, and all the agents directly and indirectly engaged in this department, is, perhaps, little short of one hundred millions annually, without taking into consideration the deterioration of the quality of many of the articles constituting this wealth, by carriage, and by being divided into small quantities, and kept in improper stores and places, in which the atmosphere is unfavorable to the keeping of such articles in a tolerably good, and much less in the best, condition for use."

"The cost of distributing wealth in Great Britain and Ireland, which includes transportation and all the people directly and indirectly involved in this process, is probably just under one hundred million each year. This estimate doesn’t even account for the decline in quality of many items that make up this wealth due to shipping, breaking them into smaller amounts, and storing them in unsuitable locations where the environment isn’t ideal for keeping these items in acceptable, let alone top, condition for use."

In further illustration of the contrariety of interests between person and person, class and class, which pervades the present constitution of society, M. Considérant adds:—

In further illustration of the conflicting interests between individuals and groups, which permeate today’s social structure, M. Considérant adds:—

"If the wine-growers wish for free trade, this freedom ruins the producer of corn, the manufacturers of iron, of cloth, of cotton, and—we are compelled to add—the smuggler and the customs' [61]officer. If it is the interest of the consumer that machines should be invented which lower prices by rendering production less costly, these same machines throw out of work thousands of workmen who do not know how to, and cannot at once, find other work. Here, then, again is one of the innumerable vicious circles of civilisation ... for there are a thousand facts which prove cumulatively that in our existing social system the introduction of any good brings always along with it some evil.

"If wine producers want free trade, that freedom harms corn farmers, iron, cloth, and cotton manufacturers, and—we have to mention—the smuggler and the customs [61] officer. If it's in the consumer's interest for machines to be invented that lower prices by making production cheaper, those same machines end up making thousands of workers unemployed who cannot immediately find other jobs. So, here we have yet another one of the countless vicious circles of civilization... because there are countless examples showing that in our current social system, introducing any good always brings some bad along with it."

"In short, if we go lower down and come to vulgar details, we find that it is the interest of the tailor, the shoemaker, and the hatter that coats, shoes, and hats should be soon worn out; that the glazier profits by the hail-storms which break windows; that the mason and the architect profit by fires; the lawyer is enriched by law-suits; the doctor by disease; the wine-seller by drunkenness; the prostitute by debauchery. And what a disaster it would be for the judges, the police, and the jailers, as well as for the barristers and the solicitors, and all the lawyers' clerks, if crimes, offences, and law-suits were all at once to come to an end!"[6]

"In short, if we look closer and consider the more basic details, we see that it benefits the tailor, the shoemaker, and the hat maker when coats, shoes, and hats wear out quickly; that the glazier profits from the hailstorms that break windows; that the mason and architect gain from fires; the lawyer gets richer from lawsuits; the doctor benefits from illness; the wine seller profits from drunkenness; the prostitute from excess. And what a catastrophe it would be for judges, police, and jailers, as well as barristers, solicitors, and all the lawyers' clerks, if crimes, offenses, and lawsuits were suddenly to disappear!"[6]

The following is one of the cardinal points of this school:—

The following is one of the key principles of this school:—

"Add to all this, that civilisation, which sows dissension and[62] war on every side; which employs a great part of its powers in unproductive labor or even in destruction; which furthermore diminishes the public wealth by the unnecessary friction and discord it introduces into industry; add to all this, I say, that this same social system has for its special characteristic to produce a repugnance for work—a disgust for labor.

"On top of everything, there's civilization, which spreads conflict and[62] war everywhere; it spends a large portion of its resources on unproductive activities or even destruction; it also reduces public wealth through the unnecessary friction and discord it brings to industry. Furthermore, I emphasize that this same social system uniquely creates an aversion to work—a disdain for labor."

"Everywhere you hear the laborer, the artisan, the clerk complain of his position and his occupation, while they long for the time when they can retire from work imposed upon them by necessity. To be repugnant, to have for its motive and pivot nothing but the fear of starvation, is the great, the fatal, characteristic of civilised labor. The civilised workman is condemned to penal servitude. So long as productive labor is so organized that instead of being associated with pleasure it is associated with pain, weariness and dislike, it will always happen that all will avoid it who are able. With few exceptions, those only will consent to work who are compelled to it by want. Hence the most numerous classes, the artificers of social wealth, the active and direct creators of all comfort and luxury, will always be condemned to touch closely on poverty and hunger; they will always be the slaves to ignorance and degradation; they will continue to be always that huge herd of [63]mere beasts of burden whom we see ill-grown, decimated by disease, bowed down in the great workshop of society over the plow or over the counter, that they may prepare the delicate food, and the sumptuous enjoyments of the upper and idle classes.

"All around, you hear workers, craftsmen, and office employees complaining about their jobs and wishing for the day they can finally retire from work forced upon them by necessity. To work out of nothing but the fear of going hungry is the tragic defining trait of modern labor. The modern worker is trapped in a never-ending cycle of servitude. As long as productive work is set up in a way that ties it to pain, exhaustion, and dislike instead of pleasure, people will always try to avoid it if they can. With few exceptions, only those who are desperate will choose to work. As a result, the largest groups—those who create social wealth, the hands-on builders of all comfort and luxury—will always find themselves on the brink of poverty and hunger; they will remain slaves to ignorance and degradation; they will continue to be that vast group of [63] mere beasts of burden, appearing malnourished, suffering from illness, and bent over in society's vast workshop, toiling over the plow or at the counter so that they can prepare the fine meals and lavish comforts for the wealthy and idle classes."

"So long as no method of attractive labor has been devised, it will continue to be true that 'there must be many poor in order that there may be a few rich;' a mean and hateful saying, which we hear every day quoted as an eternal truth from the mouths of people who call themselves Christians or philosophers. It is very easy to understand that oppression, trickery, and especially poverty, are the permanent and fatal appanage of every state of society characterized by the dislike of work, for, in this case, there is nothing but poverty that will force men to labor. And the proof of this is, that if every one of all the workers were to become suddenly rich, nineteen-twentieths of all the work now done would be abandoned."[7]

"As long as no attractive way to work has been created, it will still be true that 'there have to be many poor people so that a few can be rich;' a mean and hateful statement that we hear every day, quoted as an eternal truth by those who call themselves Christians or philosophers. It's easy to understand that oppression, deceit, and especially poverty, are the permanent and deadly consequences of any society that dislikes work, because, in this case, the only thing that will drive people to work is poverty. The proof of this is that if every single worker suddenly became wealthy, nineteen out of twenty jobs currently being done would be abandoned." [7]

In the opinion of the Fourierists, the tendency of the present order of society is to a concentration of wealth in the hands of a comparatively few immensely rich individuals or companies, and the reduction of all the rest of the [64]community into a complete dependence on them. This was termed by Fourier la jeodalite industrielle.

In the view of the Fourierists, the current social order is leading to a concentration of wealth among a small number of extremely wealthy individuals or corporations, leaving the rest of the [64]community entirely dependent on them. Fourier called this la jeodalite industrielle.

"This feudalism," says M. Considérant, "would be constituted as soon as the largest part of the industrial and territorial property of the nation belongs to a minority which absorbs all its revenues, while the great majority, chained to the work-bench or laboring on the soil, must be content to gnaw the pittance which is cast to them."[8]

"This feudalism," says M. Considérant, "would be established as soon as most of the nation's industrial and land ownership is controlled by a minority that takes all the profits, while the vast majority, tied to the workbench or toiling on the land, must settle for the scraps that are thrown to them."[8]

This disastrous result is to be brought about partly by the mere progress of competition, as sketched in our previous extract by M. Louis Blanc; assisted by the progress of national debts, which M. Considérant regards as mortgages of the whole land and capital of the country, of which "les capitalistes prêteurs" become, in a greater and greater measure, co-proprietors, receiving without labor or risk an increasing portion of the revenues.

This disastrous outcome is partly due to the ongoing competition, as outlined in our earlier excerpt by M. Louis Blanc; combined with the rise of national debts, which M. Considérant views as mortgages on the entire land and capital of the country, making "les capitalistes prêteurs" increasingly co-owners, receiving a larger share of the revenues without having to work or take any risks.


The Socialist Critique of Today's Social Structure Reviewed.[65]

It is impossible to deny that the considerations brought to notice in the preceding chapter make out a frightful case either against the existing order of society, or against the position of man himself in this world. How much of the evils should be referred to the one, and how much to the other, is the principal theoretic question which has to be resolved. But the strongest case is susceptible of exaggeration; and it will have been evident to many readers, even from the passages I have quoted, that such exaggeration is not wanting in the representations of the ablest and most candid Socialists. Though much of their allegations is unanswerable, not a little is the result of errors in political economy; by which, let me say once for all, I do not mean the rejection of any practical rules of policy which have been laid down by political economists, I mean ignorance of economic facts, and of the causes by which the economic [66]phenomena of society as it is, are actually determined.

It’s hard to overlook the alarming points raised in the previous chapter that either criticize the current social order or highlight humanity's place in the world. The main theoretical question to resolve is how much of these problems can be attributed to one versus the other. However, even the strongest arguments can be overstated, and it’s clear to many readers, even from the excerpts I’ve shared, that such overstatement exists in the arguments of the most skilled and honest Socialists. While much of what they claim is difficult to refute, some of it stems from misconceptions about political economics. By this, I want to clarify that I don’t mean dismissing practical policies proposed by political economists; rather, I’m talking about a lack of understanding of economic facts and the underlying causes that truly shape the economic [66] phenomena of society as it is.

In the first place it is unhappily true that the wages of ordinary labor, in all the countries of Europe, are wretchedly insufficient to supply the physical and moral necessities of the population in any tolerable measure. But, when it is further alleged that even this insufficient remuneration has a tendency to diminish; that there is, in the words of M. Louis Blanc, une baisse continue des salaires; the assertion is in opposition to all accurate information, and to many notorious facts. It has yet to be proved that there is any country in the civilized world where the ordinary wages of labor, estimated either in money or in articles of consumption, are declining; while in many they are, on the whole, on the increase; and an increase which is becoming, not slower, but more rapid. There are, occasionally, branches of industry which are being gradually superseded by something else, and, in those, until production accommodates itself to demand, wages are depressed; which is an evil, but a [67]temporary one, and would admit of great alleviation even in the present system of social economy. A diminution thus produced of the reward of labor in some particular employment is the effect and the evidence of increased remuneration, or of a new source of remuneration, in some other; the total and the average remuneration being undiminished, or even increased. To make out an appearance of diminution in the rate of wages in any leading branch of industry, it is always found necessary to compare some month or year of special and temporary depression at the present time, with the average rate, or even some exceptionally high rate, at an earlier time. The vicissitudes are no doubt a great evil, but they were as frequent and as severe in former periods of economical history as now. The greater scale of the transactions, and the greater number of persons involved in each fluctuation, may make the fluctuation appear greater, but though a larger population affords more sufferers, the evil does not weigh heavier on each of them individually. There is much evidence of improvement, and [68]none, that is at all trustworthy, of deterioration, in the mode of living of the laboring population of the countries of Europe; when there is any appearance to the contrary it is local or partial, and can always be traced either to the pressure of some temporary calamity, or to some bad law or unwise act of government which admits of being corrected, while the permanent causes all operate in the direction of improvement.

It's unfortunately true that the wages of regular workers in all European countries are pitifully inadequate to meet the physical and moral needs of the population in any decent way. However, when it is claimed that these insufficient wages are actually decreasing; that there is, in the words of M. Louis Blanc, une baisse continue des salaires; this claim contradicts all accurate information and many well-known facts. It has yet to be proven that there is any civilized country where the usual wages of labor, whether measured in money or goods, are falling; in many places, they are generally rising, and that rise is getting faster, not slower. Occasionally, there are sectors of industry that are being slowly replaced by others, and in these cases, until production aligns with demand, wages are lowered; this is a problem, but a [67]temporary one, and significant relief could be achieved even within the current economic system. A decrease in wages in a specific job is a sign of increased pay, or of a new source of pay, in another area; the overall and average pay is either unchanged or even rising. To create the illusion of a decrease in wages in any major industry, one must compare a month or year of specific and temporary downturns with the average rate, or even a particularly high rate, from an earlier time. These ups and downs are indeed a significant issue, but they were just as common and severe in earlier periods of economic history as they are now. The larger scale of transactions and the greater number of people affected by each shift may make the fluctuations seem more pronounced, but while a larger population means more people suffering, the burden does not fall heavier on any one individual. There is much evidence of improvement, and [68]none that is at all reliable indicating a decline in the living conditions of the working population in European countries; when there seems to be evidence to the contrary, it is usually localized or limited, and can always be traced back to some temporary disaster, or to a bad law or unwise government action that can be fixed, while the underlying causes are all pushing towards improvement.

M. Louis Blanc, therefore, while showing himself much more enlightened than the older school of levellers and democrats, inasmuch as he recognizes the connection between low wages and the over-rapid increase of population, appears to have fallen into the same error which was at first committed by Malthus and his followers, that of supposing that because population has a greater power of increase than subsistence, its pressure upon subsistence must be always growing more severe. The difference is that the early Malthusians thought this an irrepressible tendency, while M. Louis Blanc thinks that it can [69]be repressed, but only under a system of Communism. It is a great point gained for truth when it comes to be seen that the tendency to over-population is a fact which Communism, as well as the existing order of society, would have to deal with. And it is much to be rejoiced at that this necessity is admitted by the most considerable chiefs of all existing schools of Socialism. Owen and Fourier, no less than M. Louis Blanc, admitted it, and claimed for their respective systems a pre-eminent power of dealing with this difficulty. However this may be, experience shows that in the existing state of society the pressure of population on subsistence, which is the principal cause of low wages, though a great, is not an increasing evil; on the contrary, the progress of all that is called civilization has a tendency to diminish it, partly by the more rapid increase of the means of employing and maintaining labor, partly by the increased facilities opened to labor for transporting itself to new countries and unoccupied fields of employment, and partly by a general improvement [70]in the intelligence and prudence of the population. This progress, no doubt, is slow; but it is much that such progress should take place at all, while we are still only in the first stage of that public movement for the education of the whole people, which when more advanced must add greatly to the force of all the two causes of improvement specified above. It is, of course, open to discussion what form of society has the greatest power of dealing successfully with the pressure of population on subsistence, and on this question there is much to be said for Socialism; what was long thought to be its weakest point will, perhaps, prove to be one of its strongest. But it has no just claim to be considered as the sole means of preventing the general and growing degradation of the mass of mankind through the peculiar tendency of poverty to produce over-population. Society as at present constituted is not descending into that abyss, but gradually, though slowly, rising out of it, and this improvement is likely to be progressive if bad laws do not interfere with it.

M. Louis Blanc, while appearing more enlightened than the older generation of egalitarians and democrats because he acknowledges the relationship between low wages and rapid population growth, seems to have made a similar mistake as Malthus and his followers. They believed that since population can grow faster than resources, its pressure on resources must always become more intense. The difference is that early Malthusians thought this was an unstoppable trend, while M. Louis Blanc believes it can be controlled, but only under a system of Communism. It’s a significant step forward to recognize that the issue of overpopulation is something both Communism and our current societal structure must address. It’s also encouraging that this reality is acknowledged by major leaders of all current Socialism schools. Owen and Fourier, just like M. Louis Blanc, recognized this and argued that their systems had unique solutions to this problem. Regardless of this, experience shows that, in today’s society, the pressure of population on resources, the main cause of low wages, is significant but not increasing. In fact, the advancement of what we call civilization tends to lessen this pressure, partly due to quicker growth in job opportunities and means of supporting labor, partly through better access for labor to move to new countries and available jobs, and partly due to a general enhancement in the intelligence and prudence of the population. This progress may be slow, but it's important that it is happening at all, especially since we are still in the early stages of educating the broader population, which, when further along, will significantly strengthen the factors for improvement mentioned above. It’s certainly debatable which societal structure best addresses the pressures of population on resources, and there’s a lot to be said for Socialism in this regard; what was once seen as its biggest weakness might turn out to be one of its greatest strengths. However, it doesn’t deserve to be viewed as the only means of preventing the widespread and growing decline of humanity due to the specific tendency of poverty to cause overpopulation. Society today is not plummeting into despair but is slowly rising out of it, and this improvement is likely to continue unless obstructed by poor laws.

[71]Next, it must be observed that Socialists generally, and even the most enlightened of them, have a very imperfect and one-sided notion of the operation of competition. They see half its effects, and overlook the other half; they regard it as an agency for grinding down every one's remuneration—for obliging every one to accept less wages for his labor, or a less price for his commodities, which would be true only if every one had to dispose of his labor or his commodities to some great monopolist, and the competition were all on one side. They forget that competition is a cause of high prices and values as well as of low; that the buyers of labor and of commodities compete with one another as well as the sellers; and that if it is competition which keeps the prices of labor and commodities as low as they are, it is competition which prevents them from falling still lower. In truth, when competition is perfectly free on both sides, its tendency is not specially either to raise or to lower the price of articles, but to equalize it; to level inequalities of remuneration, and to reduce [72]all to a general average, a result which, in so far as realized (no doubt very imperfectly), is, on Socialistic principles, desirable. But if, disregarding for the time that part of the effects of competition which consists in keeping up prices, we fix our attention on its effect in keeping them down, and contemplate this effect in reference solely to the interest of the laboring classes, it would seem that if competition keeps down wages, and so gives a motive to the laboring classes to withdraw the labor market from the full influence of competition, if they can, it must on the other hand have credit for keeping down the prices of the articles on which wages are expended, to the great advantage of those who depend on wages. To meet this consideration Socialists, as we said in our quotation from M. Louis Blanc, are reduced to affirm that the low prices of commodities produced by competition are delusive and lead in the end to higher prices than before, because when the richest competitor has got rid of all his rivals, he commands the market and can demand any price he pleases. Now, the [73]commonest experience shows that this state of things, under really free competition, is wholly imaginary. The richest competitor neither does nor can get rid of all his rivals, and establish himself in exclusive possession of the market; and it is not the fact that any important branch of industry or commerce formerly divided among many has become, or shows any tendency to become, the monopoly of a few.

[71]Next, it’s important to note that Socialists, even the most progressive among them, have an incomplete and biased understanding of how competition works. They perceive only some of its effects and ignore others; they view it as a means to depress everyone’s pay—forcing everyone to accept lower wages for their labor or lower prices for their goods. This would only be the case if everyone had to sell their labor or products to a large monopolist, and the competition was all one-sided. They forget that competition can also lead to high prices and values; that buyers of labor and goods are competing with each other just as much as sellers are; and that while competition keeps prices for labor and goods as low as they are, it also prevents them from dropping even lower. In reality, when competition is completely free on both sides, it tends not to specifically raise or lower the price of products but to equalize it; to level out pay discrepancies, and to bring everything down to a general average—an outcome that, as far as it is achieved (though imperfectly), is desirable from a Socialistic perspective. However, if we focus solely on the way competition keeps prices low regarding the interests of the working class, it appears that while competition may suppress wages and motivate workers to pull the labor market away from full competition, it also deserves credit for keeping the prices of the goods they rely on low, greatly benefiting those who depend on wages. To counter this, Socialists, as we mentioned in our quote from M. Louis Blanc, argue that the low prices of goods created by competition are misleading and ultimately lead to higher prices than before because when the wealthiest competitor eliminates all rivals, they control the market and can set any price they want. However, [73]common experience shows that this situation, under truly free competition, is entirely imaginary. The richest competitor cannot and does not eliminate all rivals and secure exclusive control of the market; nor is it true that any significant sector of industry or commerce that was once shared among many has become, or shows any signs of becoming, a monopoly held by a few.

The kind of policy described is sometimes possible where, as in the case of railways, the only competition possible is between two or three great companies, the operations being on too vast a scale to be within the reach of individual capitalists; and this is one of the reasons why businesses which require to be carried on by great joint-stock enterprises cannot be trusted to competition, but, when not reserved by the State to itself, ought to be carried on under conditions prescribed, and, from time to time, varied by the State, for the purpose of insuring to the public a cheaper supply of its wants than would be afforded by private interest in the absence of sufficient [74]competition. But in the ordinary branches of industry no one rich competitor has it in his power to drive out all the smaller ones. Some businesses show a tendency to pass out of the hands of many small producers or dealers into a smaller number of larger ones; but the cases in which this happens are those in which the possession of a larger capital permits the adoption of more powerful machinery, more efficient by more expensive processes, or a better organized and more economical mode of carrying on business, and thus enables the large dealer legitimately and permanently to supply the commodity cheaper than can be done on the small scale; to the great advantage of the consumers, and therefore of the laboring classes, and diminishing, pro tanto, that waste of the resources of the community so much complained of by Socialists, the unnecessary multiplication of mere distributors, and of the various other classes whom Fourier calls the parasites of industry. When this change is effected, the larger capitalists, either individual or joint stock, among which the business is [75]divided, are seldom, if ever, in any considerable branch of commerce, so few as that competition shall not continue to act between them; so that the saving in cost, which enabled them to undersell the small dealers, continues afterwards, as at first, to be passed on, in lower prices, to their customers. The operation, therefore, of competition in keeping down the prices of commodities, including those on which wages are expended, is not illusive but real, and, we may add, is a growing, not a declining, fact.

The kind of policy described is sometimes possible when, as in the case of railways, the only competition comes from two or three major companies, since the operations are too large for individual investors to manage. This is one reason why businesses that need to be run by big joint-stock companies cannot solely rely on competition; if not kept in check by the State, they should operate under conditions set by the State, which can change them periodically to ensure that the public receives a cheaper supply of goods than what private interests would provide without enough [74]competition. However, in regular industries, a wealthy competitor cannot easily drive out all the smaller ones. Some businesses do trend toward consolidation from many small producers or sellers into fewer larger ones, but this occurs when having a larger capital allows the use of more powerful machinery, more efficient (but costlier) processes, or a better organized and more cost-effective way of doing business. This enables the larger dealer to provide the product at a lower price than small-scale operations can, which benefits consumers and, by extension, the working class, while also reducing, to some extent, that waste of resources that Socialists often criticize, namely the unnecessary increase of mere distributors and other groups that Fourier termed the parasites of industry. Once this transition happens, the larger capitalists, whether individuals or joint stock, who take part in the business [75]are rarely, if ever, so few in any significant area of commerce that competition ceases to exist among them. Therefore, the cost savings that allowed them to undercut small dealers continue to be passed on to their customers in the form of lower prices. Hence, competition does genuinely help in reducing commodity prices, including those where wages are spent, and this is not an illusion but a real and increasingly relevant phenomenon.

But there are other respects, equally important, in which the charges brought by Socialists against competition do not admit of so complete an answer. Competition is the best security for cheapness, but by no means a security for quality. In former times, when producers and consumers were less numerous, it was a security for both. The market was not large enough nor the means of publicity sufficient to enable a dealer to make a fortune by continually attracting new customers: his success depended on his retaining those that he had; and when a dealer furnished [76]good articles, or when he did not, the fact was soon known to those whom it concerned, and he acquired a character for honest or dishonest dealing of more importance to him than the gain that would be made by cheating casual purchasers. But on the great scale of modern transactions, with the great multiplication of competition and the immense increase in the quantity of business competed for, dealers are so little dependent on permanent customers that character is much less essential to them, while there is also far less certainty of their obtaining the character they deserve. The low prices which a tradesman advertises are known, to a thousand for one who has discovered for himself or learned from others, that the bad quality of the goods is more than an equivalent for their cheapness; while at the same time the much greater fortunes now made by some dealers excite the cupidity of all, and the greed of rapid gain substitutes itself for the modest desire to make a living by their business. In this manner, as wealth increases and greater prizes seem to be within reach, more [77]and more of a gambling spirit is introduced into commerce; and where this prevails not only are the simplest maxims of prudence disregarded, but all, even the most perilous, forms of pecuniary improbity receive a terrible stimulus. This is the meaning of what is called the intensity of modern competition. It is further to be mentioned that when this intensity has reached a certain height, and when a portion of the producers of an article or the dealers in it have resorted to any of the modes of fraud, such as adulteration, giving short measure, &c., of the increase of which there is now so much complaint, the temptation is immense on these to adopt the fraudulent practises, who would not have originated them; for the public are aware of the low prices fallaciously produced by the frauds, but do not find out at first, if ever, that the article is not worth the lower price, and they will not go on paying a higher price for a better article, and the honest dealer is placed at a terrible disadvantage. Thus the frauds, begun by a few, become customs of [78]the trade, and the morality of the trading classes is more and more deteriorated.

But there are other important aspects where the criticisms by Socialists against competition don’t have such clear answers. Competition ensures lower prices, but it doesn’t guarantee quality. In the past, when there were fewer producers and consumers, it provided security for both. The market wasn't large enough, nor was advertising effective enough for a seller to become wealthy by constantly attracting new customers; their success depended on keeping the ones they had. If a seller provided good products, or if they didn't, it quickly became known to those concerned, and they earned a reputation for honesty or dishonesty that mattered more than any profit from cheating occasional buyers. However, in today’s vast marketplace, with so much competition and a huge increase in the amount of business available, sellers rely much less on loyal customers, making reputation less critical for them, while there's also much less certainty that they will earn the reputation they deserve. The low prices that a seller advertises are recognized, but for every one person who finds out for themselves or hears from others, countless others don't realize that the poor quality of the goods more than offsets their cheapness; at the same time, the much greater wealth that some sellers are amassing fuels greed, and the desire for quick profits replaces the modest aim of making a living through their business. As wealth grows and greater rewards seem attainable, a gambling mentality increasingly seeps into commerce; where this mindset prevails, not only are the simplest rules of caution ignored, but all types of financial dishonesty, even the most dangerous, are driven to alarming heights. This reflects what is termed the intensity of modern competition. It's also important to note that when this intensity reaches a certain level, and when some producers or sellers turn to dishonest practices like adulteration or short measure—which have been widely criticized—the temptation for those who wouldn’t normally engage in these frauds to join in becomes immense. The public knows the low prices generated by these dishonest practices but often fails to realize initially, if ever, that the product isn’t worth the lower price, and they won’t continue paying higher prices for better goods, putting the honest seller at a serious disadvantage. Thus, frauds that begin with a few become norms within the trade, and the morality of the trading classes deteriorates further.

On this point, therefore, Socialists have really made out the existence not only of a great evil, but of one which grows and tends to grow with the growth of population and wealth. It must be said, however, that society has never yet used the means which are already in its power of grappling with this evil. The laws against commercial frauds are very defective, and their execution still more so. Laws of this description have no chance of being really enforced unless it is the special duty of some one to enforce them. They are specially in need of a public prosecutor. It is still to be discovered how far it is possible to repress by means of the criminal law a class of misdeeds which are now seldom brought before the tribunals, and to which, when brought, the judicial administration of this country is most unduly lenient. The most important class, however, of these frauds, to the mass of the people, those which affect the price or quality of articles of daily consumption, can be in a great measure [79]overcome by the institution of co-operative stores. By this plan any body of consumers who form themselves into an association for the purpose, are enabled to pass over the retail dealers and obtain their articles direct from the wholesale merchants, or, what is better (now that wholesale co-operative agencies have been established), from the producers, thus freeing themselves from the heavy tax now paid to the distributing classes and at the same time eliminate the usual perpetrators of adulterations and other frauds. Distribution thus becomes a work performed by agents selected and paid by those who have no interest in anything but the cheapness and goodness of the article; and the distributors are capable of being thus reduced to the numbers which the quantity of work to be done really requires. The difficulties of the plan consist in the skill and trustworthiness required in the managers, and the imperfect nature of the control which can be exercised over them by the body at large. The great success and rapid growth of the system prove, however, that these difficulties [80]are, in some tolerable degree, overcome. At all events, if the beneficial tendency of the competition of retailers in promoting cheapness is fore-gone, and has to be replaced by other securities, the mischievous tendency of the same competition in deteriorating quality is at any rate got rid of; and the prosperity of the co-operative stores shows that this benefit is obtained not only without detriment to cheapness, but with great advantage to it, since the profits of the concerns enable them to return to the consumers a large percentage on the price of every article supplied to them. So far, therefore, as this class of evils is concerned, an effectual remedy is already in operation, which, though suggested by and partly grounded on socialistic principles, is consistent with the existing constitution of property.

On this point, Socialists have really highlighted the existence of not just a significant problem, but one that grows as the population and wealth increase. However, it's worth noting that society hasn't yet utilized the means it already has to tackle this issue. The laws against commercial frauds are quite weak, and their enforcement is even weaker. These laws have no real chance of being effectively enforced unless there’s a specific person assigned to do so. They especially need a public prosecutor. It’s still unclear how much we can suppress a range of crimes that are rarely brought before the courts, and when they are, the judicial system in this country tends to be overly lenient. The most significant type of these frauds, which impact the price or quality of everyday goods for the general public, can largely be addressed through the establishment of co-operative stores. This way, any group of consumers can band together to bypass retail dealers and purchase their goods directly from wholesale merchants or, better yet (with the establishment of wholesale co-operative agencies), from the producers themselves, thus avoiding the hefty fees currently paid to the middlemen while also eliminating the usual culprits of fraud and adulteration. Distribution then becomes a task carried out by agents chosen and paid by those whose only interest is the affordability and quality of the product; and the number of distributors can be kept in line with the actual workload. The challenges of this approach lie in the skill and reliability needed from the managers, as well as the limited oversight the larger group can have over them. However, the significant success and rapid growth of this system show that these challenges [80] are being managed to a reasonable extent. In any case, if we set aside the positive effects of competition among retailers in promoting lower prices, which needs to be replaced with other assurances, the harmful effects of that same competition on quality are eliminated. The prosperity of co-operative stores demonstrates that this benefit is achieved not only without sacrificing affordability but with considerable added value, as the profits allow them to return a large percentage of the cost back to the consumers. Thus, in terms of this particular set of problems, an effective solution is already in place, which, while inspired by and partly founded on socialist ideas, aligns with the current system of property ownership.

With regard to those greater and more conspicuous economical frauds, or malpractices equivalent to frauds, of which so many deplorable cases have become notorious—committed by merchants and bankers between [81]themselves or between them and those who have trusted them with money, such a remedy as above described is not available, and the only resources which the present constitution of society affords against them are a sterner reprobation by opinion, and a more efficient repression by the law. Neither of these remedies has had any approach to an effectual trial. It is on the occurrence of insolvencies that these dishonest practices usually come to light; the perpetrators take their place, not in the class of malefactors, but in that of insolvent debtors; and the laws of this and other countries were formerly so savage against simple insolvency, that by one of those reactions to which the opinions of mankind are liable, insolvents came to be regarded mainly as objects of compassion, and it seemed to be thought that the hand both of law and of public opinion could hardly press too lightly upon them. By an error in a contrary direction to the ordinary one of our law, which in the punishment of offences in general wholly neglects the question of reparation to the sufferer, [82]our bankruptcy laws have for some time treated the recovery for creditors of what is left of their property as almost the sole object, scarcely any importance being attached to the punishment of the bankrupt for any misconduct which does not directly interfere with that primary purpose. For three or four years past there has been a slight counter-reaction, and more than one bankruptcy act has been passed, somewhat less indulgent to the bankrupt; but the primary object regarded has still been the pecuniary interest of the creditors, and criminality in the bankrupt himself, with the exception of a small number of well-marked offences, gets off almost with impunity. It may be confidently affirmed, therefore, that, at least in this country, society has not exerted the power it possesses of making mercantile dishonesty dangerous to the perpetrator. On the contrary, it is a gambling trick in which all the advantage is on the side of the trickster: if the trick succeeds it makes his fortune, or preserves it; if it fails, he is at most reduced to poverty, which was perhaps [83]already impending when he determined to run the chance, and he is classed by those who have not looked closely into the matter, and even by many who have, not among the infamous but among the unfortunate. Until a more moral and rational mode of dealing with culpable insolvency has been tried and failed, commercial dishonesty cannot be ranked among evils the prevalence of which is inseparable from commercial competition.

Regarding the larger and more blatant economic frauds, or unethical practices similar to fraud, which have become widely known—committed by merchants and bankers themselves or between them and those who have trusted them with money—such a remedy as mentioned above isn’t available. The only resources that society currently has against them are stronger condemnation by public opinion and more effective enforcement through the law. Neither of these solutions has been truly tested. It's often during insolvencies that these dishonest actions come to light; the wrongdoers are seen not as criminals, but as insolvent debtors. In the past, the laws in this and other countries were extremely harsh toward simple insolvency, leading to a reaction in public opinion where insolvents came to be viewed mostly with compassion, and it seemed that both the law and public opinion could hardly be too lenient with them. Due to an unusual approach in our legal system, which generally overlooks the question of compensating the victim in punishing offenses, our bankruptcy laws have long focused on recovering whatever is left of the debtor's property for the creditors, with little regard for punishing the bankrupt for any misconduct that doesn’t directly hinder that goal. Over the past three or four years, there has been a slight shift, and several bankruptcy acts have been passed that are somewhat less forgiving toward the bankrupt; however, the main concern has still remained the financial interests of the creditors, and criminal behavior in the bankrupt themselves generally goes unpunished, except for a few clearly defined offenses. It can be confidently stated, therefore, that, at least in this country, society has not used its ability to make business dishonesty risky for the perpetrator. On the contrary, it’s a risky gamble that favors the trickster: if it succeeds, it leads to wealth or preserves their fortune; if it fails, they might only end up in poverty, which could have been imminent when they chose to take the risk, and they are categorized by those who haven’t examined the issue closely—and even by many who have—not among the infamous, but among the unfortunate. Until a more ethical and sensible approach to dealing with culpable insolvency has been attempted and failed, commercial dishonesty cannot be classified as one of the evils that are inseparable from commercial competition.

Another point on which there is much misapprehension on the part of Socialists, as well as of Trades Unionists and other partisans of Labor against Capital, relates to the proportions in which the produce of the country is really shared and the amount of what is actually diverted from those who produce it, to enrich other persons. I forbear for the present to speak of the land, which is a subject apart. But with respect to capital employed in business, there is in the popular notions a great deal of illusion. When, for instance, a capitalist invests £20,000 in his business, and draws from it an income of [84](suppose) £2,000 a year, the common impression is as if he was the beneficial owner both of the £20,000 and of the £2,000, while the laborers own nothing but their wages. The truth, however, is, that he only obtains the £2,000 on condition of applying no part of the £20,000 to his own use. He has the legal control over it, and might squander it if he chose, but if he did he would not have the £2,000 a year also. As long as he derives an income from his capital he has not the option of withholding it from the use of others. As much of his invested capital as consists of buildings, machinery, and other instruments of production, are applied to production and are not applicable to the support or enjoyment of any one. What is so applicable (including what is laid out in keeping up or renewing the buildings and instruments) is paid away to laborers, forming their remuneration and their share in the division of the produce. For all personal purposes they have the capital and he has but the profits, which it only yields to him on condition that the capital itself is employed in satisfying [85]not his own wants, but those of laborers. The proportion which the profits of capital usually bear to capital itself (or rather to the circulating portion of it) is the ratio which the capitalist's share of the produce bears to the aggregate share of the laborers. Even of his own share a small part only belongs to him as the owner of capital. The portion of the produce which falls to capital merely as capital is measured by the interest of money, since that is all that the owner of capital obtains when he contributes nothing to production except the capital itself. Now the interest of capital in the public funds, which are considered to be the best security, is at the present prices (which have not varied much for many years) about three and one-third per cent. Even in this investment there is some little risk—risk of repudiation, risk of being obliged to sell out at a low price in some commercial crisis.

Another area where Socialists, Trades Unionists, and other labor advocates misunderstand things is about how the country’s output is actually shared and how much is taken away from the producers to benefit others. I won’t talk about the land right now, as that’s a separate topic. But when it comes to capital used in business, there are many misconceptions in popular opinion. For example, when a capitalist invests £20,000 in their business and gets an income of £2,000 a year, people often think they entirely own both the £20,000 and the £2,000, while workers only get their wages. In reality, the capitalist gets the £2,000 only if they don’t use any of the £20,000 for personal expenses. They have legal control over it and could waste it if they wanted, but doing that would mean losing the £2,000 a year as well. As long as they earn income from their capital, they cannot withhold it from being used by others. The portion of their invested capital that includes buildings, machinery, and other production tools is used for production and not for anyone's personal use. What can be used for personal needs (including what is spent on maintaining or upgrading buildings and equipment) goes to the workers, forming their pay and their part of the output. For all personal purposes, they have the capital, and the capitalist only receives the profits, which come only if the capital is used to meet the needs of workers, not their own. The usual proportion of profit to capital itself (or, more specifically, to the circulating portion of it) is the ratio of the capitalist's share of the output to the total share of the workers. Of their own share, only a small part actually belongs to them as capital owners. The part of the output that goes to capital as capital is measured by the interest on money, since that is all the capital owner receives when they contribute nothing to production except the capital itself. Currently, the interest on capital in public funds, which are considered the safest investment, is about three and one-third percent at present prices (which haven’t changed much in many years). There’s still some minimal risk involved in this investment—like the risk of a default or the need to sell at a low price during a market crash.

Estimating these risks at 1/3 per cent., the remaining 3 per cent. may be considered as the remuneration of capital, apart from insurance against loss. On the security of a mortgage [86]4 per cent. is generally obtained, but in this transaction there are considerably greater risks—the uncertainty of titles to land under our bad system of law; the chance of having to realize the security at a great cost in law charges; and liability to delay in the receipt of the interest even when the principal is safe. When mere money independently of exertion yields a larger income, as it sometimes does, for example, by shares in railway or other companies, the surplus is hardly ever an equivalent for the risk of losing the whole, or part, of the capital by mismanagement, as in the case of the Brighton Railway, the dividend of which, after having been 6 per cent. per annum, sunk to from nothing to 1-1/2 per cent., and shares which had been bought at 120 could not be sold for more than about 43. When money is lent at the high rates of interest one occasionally hears of, rates only given by spend-thrifts and needy persons, it is because the risk of loss is so great that few who possess money can be induced to lend to them at all. So little reason is there for the outcry against "usury" [87]as one of the grievous burthens of the working-classes. Of the profits, therefore, which a manufacturer or other person in business obtains from his capital no more than about 3 per cent. can be set down to the capital itself. If he were able and willing to give up the whole of this to his laborers, who already share among them the whole of his capital as it is annually reproduced from year to year, the addition to their weekly wages would be inconsiderable. Of what he obtains beyond 3 per cent. a great part is insurance against the manifold losses he is exposed to, and cannot safely be applied to his own use, but requires to be kept in reserve to cover those losses when they occur. The remainder is properly the remuneration of his skill and industry—the wages of his labor of superintendence. No doubt if he is very successful in business these wages of his are extremely liberal, and quite out of proportion to what the same skill and industry would command if offered for hire. But, on the other hand, he runs a worse risk than that of being out of employment; that of doing the [88]work without earning anything by it, of having the labor and anxiety without the wages. I do not say that the drawbacks balance the privileges, or that he derives no advantage from the position which makes him a capitalist and employer of labor, instead of a skilled superintendent letting out his services to others; but the amount of his advantage must not be estimated by the great prizes alone. If we subtract from the gains of some the losses of others, and deduct from the balance a fair compensation for the anxiety, skill, and labor of both, grounded on the market price of skilled superintendence, what remains will be, no doubt, considerable, but yet, when compared to the entire capital of the country, annually reproduced and dispensed in wages, it is very much smaller than it appears to the popular imagination; and were the whole of it added to the share of the laborers it would make a less addition to that share than would be made by any important invention in machinery, or by the suppression of unnecessary distributors and other "parasites of [89]industry." To complete the estimate, however, of the portion of the produce of industry which goes to remunerate capital we must not stop at the interest earned out of the produce by the capital actually employed in producing it, but must include that which is paid to the former owners of capital which has been unproductively spent and no longer exists, and is paid, of course, out of the produce of other capital. Of this nature is the interest of national debts, which is the cost a nation is burthened with for past difficulties and dangers, or for past folly or profligacy of its rulers, more or less shared by the nation itself. To this must be added the interest on the debts of landowners and other unproductive consumers; except so far as the money borrowed may have been spent in remunerative improvement of the productive powers of the land. As for landed property itself—the appropriation of the rent of land by private individuals—I reserve, as I have said, this question for discussion hereafter; for the tenure of land might be varied in any manner [90]considered desirable, all the land might be declared the property of the State, without interfering with the right of property in anything which is the product of human labor and abstinence.

Estimating these risks at 0.33%, the remaining 3% can be seen as the return on capital, aside from insurance against loss. On a mortgage, about 4% is typically obtained, but in this situation, there are significantly higher risks—such as the uncertainty of land titles under our flawed legal system; the possibility of needing to enforce the security at a high cost in legal fees; and the risk of delays in receiving interest even when the principal is secure. When money generates a higher income without effort, like through shares in railway or other companies, the extra earnings rarely match the risk of losing all or part of the capital due to mismanagement, as seen with the Brighton Railway, whose dividend dropped from 6% per year to between nothing and 1.5%, and shares that were purchased at 120 could only be sold for around 43. When money is lent at the high-interest rates sometimes heard, often only offered by spendthrifts and desperate individuals, it’s because the risk of loss is so significant that very few people with money are willing to lend. This shows how little reason there is for the complaints about "usury" as one of the major burdens on the working class. Therefore, of the profits a manufacturer or business owner earns from their capital, only about 3% can be attributed to the capital itself. If they were able and willing to give all of this to their workers, who already share the entire capital as it is produced each year, the increase in their weekly wages would be minimal. Much of what they earn above 3% is essentially insurance against various losses they might face, which cannot be safely used for personal expenses but must be saved to cover those losses when they arise. The rest is legitimately the reward for their skills and hard work—the pay for their supervisory labor. It's true that if they are very successful in business, these wages can be extremely generous and quite disproportionate to what the same skills would earn if they were simply hired out. However, on the flip side, they face a risk that is worse than unemployment: that of doing the work without earning anything from it, enduring the labor and stress without any pay. I’m not suggesting that the drawbacks offset the benefits, or that they gain no advantage from being a capitalist and employer of labor instead of a skilled supervisor renting out their services; but the extent of their advantage shouldn't be gauged solely by the big rewards. If we account for some people’s gains and others’ losses, and subtract a fair compensation for the anxiety, skill, and labor of both, based on the market rate for skilled supervision, what’s left will no doubt be significant, but when compared to the total capital in the country, which is reproduced annually and distributed as wages, it is much smaller than it appears in the public perception. If all of it were added to workers’ shares, it would increase that share less than any significant technological advancement or by cutting out unnecessary distributors and other "parasites of industry." To complete the assessment of how much of the output from industry goes to compensate capital, we can't just look at the interest generated from the capital actively used in production; we must also consider interest paid to previous owners of capital that has been wasted and no longer exists, which is obviously funded by the output of other capital. This includes the interest on national debts, which represents the burden a nation carries for past challenges and mistakes, shared more or less by the nation itself. We should also add the interest on debts from landowners and other non-productive consumers, except where the borrowed money has been used for profitable improvements to the productive capabilities of the land. As for land itself—the allocation of land rent to private individuals—I'll set this issue aside for later discussion; because land ownership could be changed in any way deemed desirable, and all land could be declared state property without affecting the ownership rights of anything that results from human labor and savings.

It seemed desirable to begin the discussion of the Socialist question by these remarks in abatement of Socialist exaggerations, in order that the true issues between Socialism and the existing state of society might be correctly conceived. The present system is not, as many Socialists believe, hurrying us into a state of general indigence and slavery from which only Socialism can save us. The evils and injustices suffered under the present system are great, but they are not increasing; on the contrary, the general tendency is towards their slow diminution. Moreover the inequalities in the distribution of the produce between capital and labor, however they may shock the feeling of natural justice, would not by their mere equalisation afford by any means so large a fund for raising the lower levels of remuneration as Socialists, [91]and many besides Socialists, are apt to suppose. There is not any one abuse or injustice now prevailing in society by merely abolishing which the human race would pass out of suffering into happiness. What is incumbent on us is a calm comparison between two different systems of society, with a view of determining which of them affords the greatest resources for overcoming the inevitable difficulties of life. And if we find the answer to this question more difficult, and more dependent upon intellectual and moral conditions, than is usually thought, it is satisfactory to reflect that there is time before us for the question to work itself out on an experimental scale, by actual trial. I believe we shall find that no other test is possible of the practicability or beneficial operation of Socialist arrangements; but that the intellectual and moral grounds of Socialism deserve the most attentive study, as affording in many cases the guiding principles of the improvements necessary to give the present economic system of society its best chance.

It seemed fitting to start the conversation about Socialism with these comments to counteract some of the exaggerations made by Socialists. This way, we can better understand the real issues between Socialism and our current society. Many Socialists think the existing system is rushing us toward widespread poverty and oppression that only Socialism can fix. While there are serious problems and injustices in the current system, they aren't getting worse; in fact, the overall trend is toward gradual improvement. Additionally, the disparities in how wealth is distributed between capital and labor, even if they seem unfair, wouldn't alone provide nearly enough resources to significantly raise the low levels of pay as Socialists and others might assume. There isn't one specific injustice in society that, if we eliminated it, would lead humanity from suffering into happiness. What we need to do is calmly compare two different social systems to see which one offers the best chance of overcoming life's unavoidable challenges. If we find this question is more complex and reliant on intellectual and moral considerations than we often think, it's reassuring to know we have time to explore this on a practical level through actual experiments. I believe there’s no other way to test the viability or positive impact of Socialist systems, but it's also crucial to carefully study the intellectual and moral foundations of Socialism, as they often provide important principles for improving our current economic system.


The Challenges of Socialism.[92]

Among those who call themselves Socialists, two kinds of persons may be distinguished. There are, in the first place, those whose plans for a new order of society, in which private property and individual competition are to be superseded and other motives to action substituted, are on the scale of a village community or township, and would be applied to an entire country by the multiplication of such self-acting units; of this character are the systems of Owen, of Fourier, and the more thoughtful and philosophic Socialists generally. The other class, who are more a product of the Continent than of Great Britain and may be called the revolutionary Socialists, propose to themselves a much bolder stroke. Their scheme is the management of the whole productive resources of the country by one central authority, the general government. And with this view some of them avow as their purpose that the working classes, or somebody in their behalf, should take possession [93]of all the property of the country, and administer it for the general benefit.

Among those who call themselves Socialists, we can distinguish two types of people. First, there are those whose ideas for a new social order—where private property and individual competition are replaced with different motivations—are at the level of a small community or township. They envision multiplying these self-sufficient units across an entire country; this group includes the systems of Owen, Fourier, and generally more thoughtful and philosophical Socialists. The second group, which tends to originate more from the Continent than from Great Britain and can be termed revolutionary Socialists, aims for a much bolder approach. Their plan involves managing all of the country’s productive resources through a single central authority, the general government. To achieve this, some openly state that the working class, or representatives on their behalf, should take control of all the country’s property and manage it for the common good.

Whatever be the difficulties of the first of these two forms of Socialism, the second must evidently involve the same difficulties and many more. The former, too, has the great advantage that it can be brought into operation progressively, and can prove its capabilities by trial. It can be tried first on a select population and extended to others as their education and cultivation permit. It need not, and in the natural order of things would not, become an engine of subversion until it had shown itself capable of being also a means of reconstruction. It is not so with the other: the aim of that is to substitute the new rule for the old at a single stroke, and to exchange the amount of good realised under the present system, and its large possibilities of improvement, for a plunge without any preparation into the most extreme form of the problem of carrying on the whole round of the operations of social life without the motive power which has always hitherto worked the social machinery. It [94]must be acknowledged that those who would play this game on the strength of their own private opinion, unconfirmed as yet by any experimental verification—who would forcibly deprive all who have now a comfortable physical existence of their only present means of preserving it, and would brave the frightful bloodshed and misery that would ensue if the attempt was resisted—must have a serene confidence in their own wisdom on the one hand and a recklessness of other people's sufferings on the other, which Robespierre and St. Just, hitherto the typical instances of those united attributes, scarcely came up to. Nevertheless this scheme has great elements of popularity which the more cautious and reasonable form of Socialism has not; because what it professes to do it promises to do quickly, and holds out hope to the enthusiastic of seeing the whole of their aspirations realised in their own time and at a blow.

No matter the challenges of the first type of Socialism, the second is clearly going to face those same challenges and many more. The first has the major benefit of being implemented gradually, allowing it to prove its effectiveness through trial. It can start with a specific group and then expand to others as they become more educated and developed. It shouldn't—and in a natural order wouldn't—become a tool for destruction until it has also shown itself to be a means of rebuilding. The second type, however, aims to replace the old system with the new all at once, trading the good achieved under the current system and its potential for improvement for a sudden and unprepared leap into the most extreme challenges of managing all social life without the driving force that has traditionally operated social systems. It [94]must be acknowledged that those who would pursue this path, relying only on their own opinions without any trial to confirm them—who would forcibly take away the means of survival from those currently living comfortably and would face the horrifying bloodshed and suffering that would occur if their efforts were met with resistance—must possess both a calm confidence in their own judgment and a disregard for other people's pain that Robespierre and St. Just, previously the most notorious examples of such traits, scarcely matched. Nevertheless, this idea has significant popular appeal that the more cautious and sensible form of Socialism lacks; because it claims to achieve its goals quickly and offers hopeful enthusiasts the chance to see all their dreams fulfilled in their lifetime and in one swift move.

The peculiarities, however, of the revolutionary form of Socialism will be most conveniently [95]examined after the considerations common to both the forms have been duly weighed.

The unique aspects of the revolutionary form of Socialism will be most conveniently [95]examined after we have carefully considered the similarities between both forms.

The produce of the world could not attain anything approaching to its present amount, nor support anything approaching to the present number of its inhabitants, except upon two conditions: abundant and costly machinery, buildings, and other instruments of production; and the power of undertaking long operations and waiting a considerable time for their fruits. In other words, there must be a large accumulation of capital, both fixed in the implements and buildings, and circulating, that is employed in maintaining the laborers and their families during the time which elapses before the productive operations are completed and the products come in. This necessity depends on physical laws, and is inherent in the condition of human life; but these requisites of production, the capital, fixed and circulating, of the country (to which has to be added the land, and all that is contained in it), may either be the collective property of those who use it, or may belong to [96]individuals; and the question is, which of these arrangements is most conducive to human happiness. What is characteristic of Socialism is the joint ownership by all the members of the community of the instruments and means of production; which carries with it the consequence that the division of the produce among the body of owners must be a public act, performed according to rules laid down by the community. Socialism by no means excludes private ownership of articles of consumption; the exclusive right of each to his or her share of the produce when received, either to enjoy, to give, or to exchange it. The land, for example, might be wholly the property of the community for agricultural and other productive purposes, and might be cultivated on their joint account, and yet the dwelling assigned to each individual or family as part of their remuneration might be as exclusively theirs, while they continued to fulfil their share of the common labors, as any one's house now is; and not the dwelling only, but any ornamental ground which the circumstances of the [97]association allowed to be attached to the house for purposes of enjoyment. The distinctive feature of Socialism is not that all things are in common, but that production is only carried on upon the common account, and that the instruments of production are held as common property. The practicability then of Socialism, on the scale of Mr. Owen's or M. Fourier's villages, admits of no dispute. The attempt to manage the whole production of a nation by one central organization is a totally different matter; but a mixed agricultural and manufacturing association of from two thousand to four thousand inhabitants under any tolerable circumstances of soil and climate would be easier to manage than many a joint stock company. The question to be considered is, whether this joint management is likely to be as efficient and successful as the managements of private industry by private capital. And this question has to be considered in a double aspect; the efficiency of the directing mind, or minds, and that of the simple workpeople. And in order to state this question in its simplest form, we will [98]suppose the form of Socialism to be simple Communism, i.e. equal division of the produce among all the sharers, or, according to M. Louis Blanc's still higher standard of justice, apportionment of it according to difference of need, but without making any difference of reward according to the nature of the duty nor according to the supposed merits or services of the individual. There are other forms of Socialism, particularly Fourierism, which do, on considerations of justice or expediency, allow differences of remuneration for different kinds or degrees of service to the community; but the consideration of these may be for the present postponed.

The world's production couldn't reach anything close to its current levels or support its current population without two key conditions: plentiful and expensive machinery, buildings, and other production tools; and the ability to undertake prolonged operations and patiently wait for results. In other words, there must be a significant accumulation of capital, both fixed in tools and buildings, and circulating, which is used to support workers and their families during the time it takes to finish productive activities and see the results. This necessity is based on physical laws and is part of human existence; however, the required production resources, both fixed and circulating (plus the land and everything it contains), can either be owned collectively by those who use them or privately owned by individuals. The real question is which arrangement promotes human happiness more effectively. Socialism is defined by communal ownership of the tools and means of production; this leads to the necessity for the distribution of goods among the owners to be a public process guided by community rules. Socialism doesn't eliminate private ownership of consumable goods; individuals still have exclusive rights to their share of the produced goods to enjoy, give away, or trade. For instance, the land might be fully owned by the community for farming and other productive uses, with cultivated land being managed collectively. Still, the home assigned to each person or family as part of their compensation could be just as exclusively theirs as any house is today, as long as they contribute to the communal labor. Not only the home, but any garden space assigned to their house for personal enjoyment could also be theirs. The main feature of Socialism is not that everything is shared but that production is done collectively and the means of production are owned communally. The feasibility of Socialism, in the contexts of Mr. Owen's or M. Fourier's villages, is unquestionable. However, attempting to manage an entire nation's production under one central organization is another issue entirely; yet a mixed agricultural and manufacturing community of two thousand to four thousand residents, given reasonable soil and climate conditions, would be easier to run than many joint-stock companies. The key question is whether this joint management would be as effective and successful as private industry managed by private capital. This issue needs to be looked at from two angles: the efficiency of the leaders, and that of the workers. To simplify this question, let's assume the type of Socialism in question is straightforward Communism, meaning equal division of goods among all participants, or, following M. Louis Blanc's even higher idea of justice, distribution based on varying needs, without disparities in rewards based on job nature or individual merit. Other forms of Socialism, particularly Fourierism, do allow for differing pay based on justice or practicality for various types or levels of service to the community, but we can postpone that discussion for now.

The difference between the motive powers in the economy of society under private property and under Communism would be greatest in the case of the directing minds. Under the present system, the direction being entirely in the hands of the person or persons who own (or are personally responsible for) the capital, the whole benefit of the difference between the best administration and the worst under which the business can [99]continue to be carried on accrues to the person or persons who control the administration: they reap the whole profit of good management except so far as their self-interest or liberality induce them to share it with their subordinates; and they suffer the whole detriment of mismanagement except so far as this may cripple their subsequent power of employing labor. This strong personal motive to do their very best and utmost for the efficiency and economy of the operations, would not exist under Communism; as the managers would only receive out of the produce the same equal dividend as the other members of the association. What would remain would be the interest common to all in so managing affairs as to make the dividend as large as possible; the incentives of public spirit, of conscience, and of the honor and credit of the managers. The force of these motives, especially when combined, is great. But it varies greatly in different persons, and is much greater for some purposes than for others. The verdict of experience, in the imperfect degree of moral cultivation which mankind [100]have yet reached, is that the motive of conscience and that of credit and reputation, even when they are of some strength, are, in the majority of cases, much stronger as restraining than as impelling forces—are more to be depended on for preventing wrong, than for calling forth the fullest energies in the pursuit of ordinary occupations. In the case of most men the only inducement which has been found sufficiently constant and unflagging to overcome the ever-present influence of indolence and love of ease, and induce men to apply themselves unrelaxingly to work for the most part in itself dull and unexciting, is the prospect of bettering their own economic condition and that of their family; and the closer the connection of every increase of exertion with a corresponding increase of its fruits, the more powerful is this motive. To suppose the contrary would be to imply that with men as they now are, duty and honor are more powerful principles of action than personal interest, not solely as to special acts and forbearances respecting which those sentiments have been [101]exceptionally cultivated, but in the regulation of their whole lives; which no one, I suppose, will affirm. It may be said that this inferior efficacy of public and social feelings is not inevitable—is the result of imperfect education. This I am quite ready to admit, and also that there are even now many individual exceptions to the general infirmity. But before these exceptions can grow into a majority, or even into a very large minority, much time will be required. The education of human beings is one of the most difficult of all arts, and this is one of the points in which it has hitherto been least successful; moreover improvements in general education are necessarily very gradual because the future generation is educated by the present, and the imperfections of the teachers set an invincible limit to the degree in which they can train their pupils to be better than themselves. We must therefore expect, unless we are operating upon a select portion of the population, that personal interest will for a long time be a more effective stimulus to the most vigorous and careful conduct of the industrial [102]business of society than motives of a higher character. It will be said that at present the greed of personal gain by its very excess counteracts its own end by the stimulus it gives to reckless and often dishonest risks. This it does, and under Communism that source of evil would generally be absent. It is probable, indeed, that enterprise either of a bad or of a good kind would be a deficient element, and that business in general would fall very much under the dominion of routine; the rather, as the performance of duty in such communities has to be enforced by external sanctions, the more nearly each person's duty can be reduced to fixed rules, the easier it is to hold him to its performance. A circumstance which increases the probability of this result is the limited power which the managers would have of independent action. They would of course hold their authority from the choice of the community, by whom their function might at any time be withdrawn from them; and this would make it necessary for them, even if not so required by the constitution [103]of the community, to obtain the general consent of the body before making any change in the established mode of carrying on the concern. The difficulty of persuading a numerous body to make a change in their accustomed mode of working, of which change the trouble is often great, and the risk more obvious to their minds than the advantage, would have a great tendency to keep things in their accustomed track. Against this it has to be set, that choice by the persons who are directly interested in the success of the work, and who have practical knowledge and opportunities of judgment, might be expected on the average to produce managers of greater skill than the chances of birth, which now so often determine who shall be the owner of the capital. This may be true; and though it may be replied that the capitalist by inheritance can also, like the community, appoint a manager more capable than himself, this would only place him on the same level of advantage as the community, not on a higher level. But it must be said on the other side that under the Communist system the [104]persons most qualified for the management would be likely very often to hang back from undertaking it. At present the manager, even if he be a hired servant, has a very much larger remuneration than the other persons concerned in the business; and there are open to his ambition higher social positions to which his function of manager is a stepping-stone. On the Communist system none of these advantages would be possessed by him; he could obtain only the same dividend out of the produce of the community's labor as any other member of it; he would no longer have the chance of raising himself from a receiver of wages into the class of capitalists; and while he could be in no way better off than any other laborer, his responsibilities and anxieties would be so much greater that a large proportion of mankind would be likely to prefer the less onerous position. This difficulty was foreseen by Plato as an objection to the system proposed in his Republic of community of goods among a governing class; and the motive on which he relied for inducing the fit persons to [105]take on themselves, in the absence of all the ordinary inducements, the cares and labors of government, was the fear of being governed by worse men. This, in truth, is the motive which would have to be in the main depended upon; the persons most competent to the management would be prompted to undertake the office to prevent it from falling into less competent hands. And the motive would probably be effectual at times when there was an impression that by incompetent management the affairs of the community were going to ruin, or even only decidedly deteriorating. But this motive could not, as a rule, expect to be called into action by the less stringent inducement of merely promoting improvement; unless in the case of inventors or schemers eager to try some device from which they hoped for great and immediate fruits; and persons of this kind are very often unfitted by over-sanguine temper and imperfect judgment for the general conduct of affairs, while even when fitted for it they are precisely the kind of persons against whom the average man is apt to [106]entertain a prejudice, and they would often be unable to overcome the preliminary difficulty of persuading the community both to adopt their project and to accept them as managers. Communistic management would thus be, in all probability, less favorable than private management to that striking out of new paths and making immediate sacrifices for distant and uncertain advantages, which, though seldom unattended with risk, is generally indispensable to great improvements in the economic condition of mankind, and even to keeping up the existing state in the face of a continual increase of the number of mouths to be fed.

The difference between the driving forces in society's economy under private property and Communism would be most significant when it comes to the leaders. Under the current system, leadership is entirely in the hands of those who own (or are personally responsible for) the capital, so all the benefits from the difference between the best management and the worst that allows the business to [99]continue go to the people controlling it. They get all the profits from good management unless their self-interest or generosity leads them to share with their subordinates; and they bear the entire burden of poor management unless it affects their future ability to hire labor. This strong personal motivation to strive for efficiency and cost-effectiveness wouldn’t exist under Communism, as managers would only receive an equal share of the profits as all other members of the group. What would remain is a shared interest in managing affairs to maximize the profits; the motivations of public spirit, conscience, and the honor and reputation of the managers. The strength of these motivations, especially when combined, is considerable. However, it varies widely among different individuals and is often stronger for certain situations than others. Experience shows that in the imperfect level of moral development that humanity [100]has achieved, the motives of conscience and reputation, even when they are somewhat strong, mostly function better as restraining forces than as driving ones—more reliable for preventing wrongdoing than for motivating maximum effort in ordinary jobs. For most people, the only incentive found consistently strong enough to overcome the constant pull of laziness and comfort, and get them to work hard at often dull and uninspiring tasks, is the chance to improve their own economic situation and that of their families; the closer the tie between effort and reward, the stronger this motivation becomes. Believing otherwise would imply that, as people are now, duty and honor are stronger motivation principles than personal interest, not just in specific actions and abstentions where those sentiments have been [101]exceptionally fostered, but in how they regulate their whole lives; no one would claim that. It can be argued that this lesser effectiveness of social feelings is not inevitable—it stems from inadequate education. I’m fully willing to accept this, and I recognize that there are many individual exceptions to the general trend. However, for these exceptions to become a majority, or even a substantial minority, will take considerable time. Educating people is one of the most challenging arts, and this is one area where it has been least successful; also, improvements in general education must happen gradually since future generations are taught by current ones, and the shortcomings of the teachers impose limits on how well they can train their students to surpass them. Therefore, unless we focus on a select group of the population, we should expect personal interest to be a more effective motivator for diligent and careful conduct in society’s industrial [102]activities for a long time than higher motives. It may be pointed out that at present, the greed for personal gain, in its excess, counteracts itself by encouraging reckless and often dishonest behavior. This is true, and under Communism, such sources of problems would mostly be absent. Indeed, it's likely that both poor and good enterprise would be limited, and that business would largely fall under routine; especially since the fulfillment of duties in these communities has to be enforced by external rules, the more a person's responsibilities can be reduced to fixed guidelines, the easier it becomes to ensure compliance. An additional factor increasing this likelihood is the limited power that managers would have for independent action. They would hold their authority from the community’s choice, which could be revoked at any time, making it necessary for them, even if not strictly required by the community’s structure [103], to gain the general consent before changing the established methods of operation. The challenge of convincing a large group to change their usual ways of working—especially when the effort involved is significant and the risks clearer than the potential benefits—would strongly favor maintaining the status quo. On the flip side, however, the selection by those directly interested in the success of the work, who have practical knowledge and judgment, could lead to managers with better skills than those selected by birth, which often determines who owns capital now. This could be true; and while it's possible to argue that a wealthy person by inheritance could also appoint a manager more capable than themselves, this would only level the field with the community, not give a better position. However, it should be noted that under a Communist system, highly qualified individuals for management may often hesitate to take on the role. Currently, managers, even if they are employees, receive significantly greater pay than others involved in the business; and they have access to higher social positions that their management role could lead to. In a Communist structure, none of these advantages would apply; they would only earn the same share from the community’s labor as every other member; they wouldn’t have the opportunity to elevate themselves from workers to capitalists; and while they wouldn’t benefit anymore than any other worker, their responsibilities and stresses would likely be much greater, causing many people to prefer the less demanding role. Plato anticipated this challenge as a critique of the system he proposed in his Republic regarding a community of wealth among a governing class, and he based his argument for encouraging qualified individuals to [105]take on the burdens and efforts of governance on the fear of being ruled by worse leaders. Ultimately, this would be the main motivation relied upon; the most capable individuals would be motivated to manage to prevent less competent people from taking over. This motivation would likely be effective during times when it appeared that incompetent management was ruining the community's affairs, or even when those matters were just clearly declining. However, this motivation could not typically be expected to act through the less compelling incentive of merely making improvements; unless it involved inventors or visionaries eager to implement a new idea they anticipated would yield significant and immediate rewards; and people of this type often struggle due to being overly optimistic and lacking the judgment needed for overall management, while even when they are suitable, they are the exact kind of individuals that average people tend to [106]be biased against, and they would often have difficulty overcoming the initial barrier of convincing the community to not only accept their proposals but also agree to them managing. Therefore, Communistic management would likely be less conducive than private management to innovating new approaches and making immediate sacrifices for distant and uncertain benefits, which, although rarely without risk, is generally essential for significant advancements in humanity's economic conditions, and even for maintaining the existing state while facing a continuously growing population.

We have thus far taken account only of the operation of motives upon the managing minds of the association. Let us now consider how the case stands in regard to the ordinary workers.

We have so far only looked at how motives affect the decision-makers in the organization. Now, let’s consider the situation for the regular workers.

These, under Communism, would have no interest, except their share of the general interest, in doing their work honestly and energetically. But in this respect matters would be no worse than they now are in regard to the great [107]majority of the producing classes. These, being paid by fixed wages, are so far from having any direct interest of their own in the efficiency of their work, that they have not even that share in the general interest which every worker would have in the Communistic organization. Accordingly, the inefficiency of hired labor, the imperfect manner in which it calls forth the real capabilities of the laborers, is matter of common remark. It is true that a character for being a good workman is far from being without its value, as it tends to give him a preference in employment, and sometimes obtains for him higher wages. There are also possibilities of rising to the position of foreman, or other subordinate administrative posts, which are not only more highly paid than ordinary labor, but sometimes open the way to ulterior advantages. But on the other side is to be set that under Communism the general sentiment of the community, composed of the comrades under whose eyes each person works, would be sure to be in favor of good and hard [108]working, and unfavorable to laziness, carelessness, and waste. In the present system not only is this not the case, but the public opinion of the workman class often acts in the very opposite direction: the rules of some trade societies actually forbid their members to exceed a certain standard of efficiency, lest they should diminish the number of laborers required for the work; and for the same reason they often violently resist contrivances for economising labor. The change from this to a state in which every person would have an interest in rendering every other person as industrious, skilful, and careful as possible (which would be the case under Communism), would be a change very much for the better.

Under Communism, people would have no personal interest, except for their share of the general interest, in doing their work honestly and energetically. However, this situation would not be worse than it currently is for the vast majority of the producing classes. Those who receive fixed wages have little to no personal stake in the quality of their work, lacking even the collective interest that every worker would have in a Communist system. As a result, the inefficiency of hired labor and the inadequate way it brings out the true abilities of workers is a widely acknowledged issue. While having a reputation as a good worker does hold some value, as it can lead to better job opportunities and higher pay, and there are chances to get promoted to foreman or other lower-level administrative roles that pay more than regular labor, this isn't enough to change the overall scenario. On the flip side, in a Communist society, the general attitude of the community—made up of the comrades watching each person's work—would likely support hard work and be against laziness, carelessness, and waste. Currently, this isn't the case; in fact, the opinions within the working class sometimes work in the opposite direction. Some trade societies even prohibit their members from exceeding a certain efficiency level to avoid reducing the number of workers needed for a job, and for the same reason, they often oppose advancements that could save labor. Transitioning to a situation where everyone has an interest in making each person as industrious, skilled, and careful as possible (which would be the case under Communism) would significantly improve the current state of affairs.

It is, however, to be considered that the principal defects of the present system in respect to the efficiency of labor may be corrected, and the chief advantages of Communism in that respect may be obtained, by arrangements compatible with private property and individual competition. Considerable improvement is already obtained [109]by piece-work, in the kinds of labor which admit of it. By this the workman's personal interest is closely connected with the quantity of work he turns out—not so much with its quality, the security for which still has to depend on the employer's vigilance; neither does piece-work carry with it the public opinion of the workman class, which is often, on the contrary, strongly opposed to it, as a means of (as they think) diminishing the market for laborers. And there is really good ground for their dislike of piece-work, if, as is alleged, it is a frequent practice of employers, after using piece-work to ascertain the utmost which a good workman can do, to fix the price of piece-work so low that by doing that utmost he is not able to earn more than they would be obliged to give him as day wages for ordinary work.

It’s important to recognize that the main flaws of the current system regarding labor efficiency can be fixed, and the key benefits of Communism in that area can be achieved, through arrangements that align with private property and individual competition. Significant improvements are already seen [109] in piece-work for types of labor that allow it. This method links the worker's personal interest directly to the amount of work they produce—not so much to its quality, which still relies on the employer's oversight; and piece-work doesn’t enjoy the support of the working-class public opinion, which often strongly opposes it, believing it reduces job opportunities for laborers. There are valid reasons for their aversion to piece-work, especially if, as claimed, employers often use piece-work to determine the maximum output a skilled worker can achieve, then set the piece-work rate so low that, even at maximum effort, the worker earns no more than what they would receive as daily wages for regular work.

But there is a far more complete remedy than piece-work for the disadvantages of hired labor, viz., what is now called industrial partnership—the admission of the whole body of laborers to a participation in the profits, by distributing among [110]all who share in the work, in the form of a percentage on their earnings, the whole or a fixed portion of the gains after a certain remuneration has been allowed to the capitalist. This plan has been found of admirable efficacy, both in this country and abroad. It has enlisted the sentiments of the workmen employed on the side of the most careful regard by all of them to the general interest of the concern; and by its joint effect in promoting zealous exertion and checking waste, it has very materially increased the remuneration of every description of labor in the concerns in which it has been adopted. It is evident that this system admits of indefinite extension and of an indefinite increase in the share of profits assigned to the laborers, short of that which would leave to the managers less than the needful degree of personal interest in the success of the concern. It is even likely that when such arrangements become common, many of these concerns would at some period or another, on the death or retirement of the chief's [111]pass, by arrangement, into the state of purely co-operative associations.

But there’s a much better solution than piecework for the issues with hired labor, which is now known as industrial partnership. This means allowing all workers to share in the profits by distributing a percentage of the earnings among [110] everyone involved in the work, after a certain amount has been given to the investor. This approach has proven to be very effective, both here and abroad. It has motivated the employees to take care of the overall interests of the business, and by encouraging diligent efforts and reducing waste, it has significantly increased wages for all types of labor in the companies that have implemented it. Clearly, this system can be expanded indefinitely, and the portion of profits given to workers can be increased as well, as long as managers retain enough personal interest in the business’s success. It’s likely that as these arrangements become more common, many of these businesses could eventually transform into purely cooperative associations upon the death or retirement of the main leader’s [111] position.

It thus appears that as far as concerns the motives to exertion in the general body, Communism has no advantage which may not be reached under private property, while as respects the managing heads it is at a considerable disadvantage. It has also some disadvantages which seem to be inherent in it, through the necessity under which it lies of deciding in a more or less arbitrary manner questions which, on the present system, decide themselves, often badly enough but spontaneously.

It seems that when it comes to the reasons for people to put in effort within a community, Communism doesn't offer any benefits that can't also be achieved with private property. However, it does put the leaders at a significant disadvantage. Additionally, it has some drawbacks that seem to be built into its structure, mainly because it has to make decisions in a more or less arbitrary way about issues that, under the current system, tend to resolve themselves on their own, even if not always perfectly.

It is a simple rule, and under certain aspects a just one, to give equal payment to all who share in the work. But this is a very imperfect justice unless the work also is apportioned equally. Now the many different kinds of work required in every society are very unequal in hardness and unpleasantness. To measure these against one another, so as to make quality equivalent to quantity, is so difficult that Communists generally propose that all should work by turns at [112]every kind of labor. But this involves an almost complete sacrifice of the economic advantages of the division of employments, advantages which are indeed frequently over-estimated (or rather the counter considerations are under-estimated) by political economists, but which are nevertheless, in the point of view of the productiveness of labor, very considerable, for the double reason that the co-operation of employment enables the work to distribute itself with some regard to the special capacities and qualifications of the worker, and also that every worker acquires greater skill and rapidity in one kind of work by confining himself to it. The arrangement, therefore, which is deemed indispensable to a just distribution would probably be a very considerable disadvantage in respect of production. But further, it is still a very imperfect standard of justice to demand the same amount of work from every one. People have unequal capacities of work, both mental and bodily, and what is a light task for one is an insupportable burthen to another. It is necessary, therefore, that there [113]should be a dispensing power, an authority competent to grant exemptions from the ordinary amount of work, and to proportion tasks in some measure to capabilities. As long as there are any lazy or selfish persons who like better to be worked for by others than to work, there will be frequent attempts to obtain exemptions by favor or fraud, and the frustration of these attempts will be an affair of considerable difficulty, and will by no means be always successful. These inconveniences would be little felt, for some time at least, in communities composed of select persons, earnestly desirous of the success of the experiment; but plans for the regeneration of society must consider average human beings, and not only them but the large residuum of persons greatly below the average in the personal and social virtues. The squabbles and ill-blood which could not fail to be engendered by the distribution of work whenever such persons have to be dealt with, would be a great abatement from the harmony and unanimity which Communists hope would [114]be found among the members of their association. That concord would, even in the most fortunate circumstances, be much more liable to disturbance than Communists suppose. The institution provides that there shall be no quarrelling about material interests; individualism is excluded from that department of affairs. But there are other departments from which no institutions can exclude it: there will still be rivalry for reputation and for personal power. When selfish ambition is excluded from the field in which, with most men, it chiefly exercises itself, that of riches and pecuniary interest, it would betake itself with greater intensity to the domain still open to it, and we may expect that the struggles for pre-eminence and for influence in the management would be of great bitterness when the personal passions, diverted from their ordinary channel, are driven to seek their principal gratification in that other direction. For these various reasons it is probable that a Communist association would frequently fail to exhibit the attractive picture of mutual [115]love and unity of will and feeling which we are often told by Communists to expect, but would often be torn by dissension and not unfrequently broken up by it.

It's a straightforward and, in some ways, fair rule to pay everyone equally for the work they contribute. However, this fairness is incomplete unless the work is also divided equally. Different types of work in society vary significantly in difficulty and unpleasantness. Comparing these tasks to make quality equivalent to quantity is so challenging that Communists usually suggest everyone should take turns doing every type of job. But this would almost completely sacrifice the economic benefits of specialized roles, which political economists often overestimate or underestimate their drawbacks. Nevertheless, these benefits are significant for labor productivity, primarily because cooperation allows tasks to align with the worker's unique skills and because workers become more skilled and efficient by focusing on one type of work. Therefore, the system considered essential for fair distribution could likely be a major drawback for production. Additionally, it's an imperfect standard of fairness to expect everyone to contribute the same amount of work. People have different abilities to work, both mentally and physically, and what feels easy for one person might be overwhelming for another. Thus, there should be an authority capable of granting exemptions from the standard workload and adjusting tasks based on abilities. As long as there are lazy or selfish individuals who prefer to benefit from others' hard work, there will be ongoing attempts to gain exemptions through favoritism or deceit, making it challenging to prevent these attempts, and success will not always be guaranteed. These issues would be less problematic, at least initially, in communities made up of dedicated individuals eager for the project's success. However, plans for societal change must account for average people, as well as those significantly below average in personal and social virtues. The conflicts and grievances that arise when dealing with such individuals would seriously undermine the harmony and unity that Communists envision in their organization. That harmony would, even under the best circumstances, be more prone to disruption than Communists assume. The system ensures no disputes over material interests; individualism is excluded from that aspect. Yet, other areas remain where institutions can't eliminate it: competition for reputation and personal power will persist. When selfish ambition is kept out of the realm of wealth and financial interests, it will intensify in the spaces still available, leading to fierce struggles for dominance and influence in decision-making, especially as personal feelings that are usually redirected will now seek fulfillment in this new direction. For all these reasons, a Communist association is likely to frequently fall short of the appealing vision of mutual love and shared goals that Communists often promise and, instead, experience significant discord and, at times, disbandment.

Other and numerous sources of discord are inherent in the necessity which the Communist principle involves, of deciding by the general voice questions of the utmost importance to every one, which on the present system can be and are left to individuals to decide, each for his own case. As an example, take the subject of education. All Socialists are strongly impressed with the all-importance of the training given to the young, not only for the reasons which apply universally, but because their demands being much greater than those of any other system upon the intelligence and morality of the individual citizen, they have even more at stake than any other societies on the excellence of their educational arrangements. Now under Communism these arrangements would have to be made for every citizen by the collective body, since individual parents, supposing them to [116]prefer some other mode of educating their children, would have no private means of paying for it, and would be limited to what they could do by their own personal teaching and influence. But every adult member of the body would have an equal voice in determining the collective system designed for the benefit of all. Here, then, is a most fruitful source of discord in every association. All who had any opinion or preference as to the education they would desire for their own children, would have to rely for their chance of obtaining it upon the influence they could exercise in the joint decision of the community.

Other and many sources of conflict come from the necessity that the Communist principle involves, which is deciding by popular vote on questions that are extremely important to everyone. In the current system, these decisions can be left to individuals to decide based on their own situations. For example, consider the topic of education. All Socialists strongly believe in the critical importance of educating the young, not only for universally applicable reasons but also because their demands are much greater than those of any other system regarding the intelligence and morality of individual citizens. They have even more at stake than any other groups when it comes to the quality of their educational systems. Now, under Communism, these arrangements would have to be made for every citizen by the collective body since individual parents, assuming they prefer a different way of educating their children, would have no private means to pay for it and would be limited to what they could accomplish through their own teaching and influence. However, every adult member of the collective would have an equal say in shaping the collective system designed for everyone's benefit. This, then, creates a significant source of conflict in any association. Those who have any opinion or preference regarding the education they want for their own children would have to depend on the influence they could exert in the community's collective decision.

It is needless to specify a number of other important questions affecting the mode of employing the productive resources of the association, the conditions of social life, the relations of the body with other associations, &c., on which difference of opinion, often irreconcilable, would be likely to arise. But even the dissensions which might be expected would be a far less evil to the prospects of humanity than a delusive unanimity produced by the prostration of [117]all individual opinions and wishes before the decree of the majority. The obstacles to human progression are always great, and require a concurrence of favorable circumstances to overcome them; but an indispensable condition of their being overcome is, that human nature should have freedom to expand spontaneously in various directions, both in thought and practice; that people should both think for themselves and try experiments for themselves, and should not resign into the hands of rulers, whether acting in the name of a few or of the majority, the business of thinking for them, and of prescribing how they shall act. But in Communist associations private life would be brought in a most unexampled degree within the dominion of public authority, and there would be less scope for the development of individual character and individual preferences than has hitherto existed among the full citizens of any state belonging to the progressive branches of the human family. Already in all societies the compression of individuality by the majority is a great and growing [118]evil; it would probably be much greater under Communism, except so far as it might be in the power of individuals to set bounds to it by selecting to belong to a community of persons like-minded with themselves.

It’s unnecessary to mention several other important questions related to how the association uses its resources, the conditions of social life, the relationships with other groups, etc., where differing opinions, often irreconcilable, are likely to emerge. However, even the disagreements that might arise would be far less harmful to humanity's future than a misleading sense of agreement created by everyone suppressing their individual opinions and desires to conform to the majority's will. The challenges to human progress are always significant and need favorable circumstances to be overcome; yet a key requirement for overcoming these challenges is that human nature must have the freedom to develop naturally in various ways, both in thought and in action. People should think for themselves and conduct their own experiments instead of entrusting their thinking and actions to rulers, whether they represent a few leaders or the majority. In Communist associations, personal life would be heavily controlled by public authority, offering less opportunity for individual character development and personal preferences than has been available to full citizens in any state considered part of the progressive branches of humanity. Even now, the majority's pressure to conform is a serious and growing problem in all societies; it would likely be much worse under Communism, unless individuals could limit it by choosing to join a community of like-minded people.

From these various considerations I do not seek to draw any inference against the possibility that Communistic production is capable of being at some future time the form of society best adapted to the wants and circumstances of mankind. I think that this is, and will long be an open question, upon which fresh light will continually be obtained, both by trial of the Communistic principle under favorable circumstances, and by the improvements which will be gradually effected in the working of the existing system, that of private ownership. The one certainty is, that Communism, to be successful, requires a high standard of both moral and intellectual education in all the members of the community—moral, to qualify them for doing their part honestly and energetically in the labor of life under no inducement but their share in [119]the general interest of the association, and their feelings of duty and sympathy towards it; intellectual, to make them capable of estimating distant interests and entering into complex considerations, sufficiently at least to be able to discriminate, in these matters, good counsel from bad. Now I reject altogether the notion that it is impossible for education and cultivation such as is implied in these things to be made the inheritance of every person in the nation; but I am convinced that it is very difficult, and that the passage to it from our present condition can only be slow. I admit the plea that in the points of moral education on which the success of communism depends, the present state of society is demoralizing, and that only a Communistic association can effectually train mankind for Communism. It is for Communism, then, to prove, by practical experiment, its power of giving this training. Experiments alone can show whether there is as yet in any portion of the population a sufficiently high level of moral cultivation to make Communism succeed, and to give to the next generation among themselves the education necessary to keep that high level permanently If Communist associations show that they can be [120]durable and prosperous, they will multiply, and will probably be adopted by successive portions of the population of the more advanced countries as they become morally fitted for that mode of life. But to force unprepared populations into Communist societies, even if a political revolution gave the power to make such an attempt, would end in disappointment.

From these various considerations, I don't want to suggest that Communistic production won't someday be the societal structure best suited to the needs and circumstances of humanity. I believe this remains an open question, one that will continue to shed new light through the practical application of Communism in positive environments and through the improvements that will slowly be made in the current system of private ownership. The one certainty is that for Communism to succeed, it requires a high standard of both moral and intellectual education in all community members—moral, to ensure they contribute honestly and energetically to life's labor without any motivation other than their share in [119]the overall interest of the group and their sense of duty and empathy towards it; intellectual, so they can assess long-term interests and understand complex issues well enough to distinguish good advice from poor advice. I completely reject the idea that it’s impossible for education and development, as implied here, to be accessible to every individual in the nation; however, I am convinced that it is quite challenging, and that moving from our current situation to that state will be a slow process. I acknowledge the argument that the moral education crucial for the success of Communism is demoralizing in today’s society and that only a Communistic community can effectively train people for Communism. Therefore, it is up to Communism to demonstrate, through practical experience, its ability to provide this training. Only experiments can reveal whether there’s a sufficiently high level of moral development in any part of the population to make Communism successful and to provide the next generation with the necessary education to maintain that high standard over time. If Communist groups can prove they can be [120]lasting and successful, they will grow in number and will likely be embraced by progressively more of the population in advanced nations as they become morally suitable for that way of life. But forcing unprepared populations into Communist societies, even if a political revolution gave the power to attempt it, would result in disappointment.

If practical trial is necessary to test the capabilities of Communism, it is no less required for those other forms of Socialism which recognize the difficulties of Communism and contrive means to surmount them. The principal of these is Fourierism, a system which, if only as a specimen of intellectual ingenuity, is highly worthy of the attention of any student, either of society or of the human mind. There is scarcely an objection or a difficulty which Fourier did not forsee, and against which he did not make provision beforehand by self-acting contrivances, grounded, however, upon a less high principle of distributive justice than that of Communism, since he admits inequalities of distribution and individual ownership of capital, but not the arbitrary disposal of it. The great problem which he grapples with is how to make labor attractive, since, if this [121]could be done, the principal difficulty of Socialism would be overcome. He maintains that no kind of useful labor is necessarily or universally repugnant, unless either excessive in amount or devoid of the stimulus of companionship and emulation, or regarded by mankind with contempt. The workers in a Fourierist village are to class themselves spontaneously in groups, each group undertaking a different kind of work, and the same person may be a member not only of one group but of any number; a certain minimum having first been set apart for the subsistence of every member of the community, whether capable or not of labor, the society divides the remainder of the produce among the different groups, in such shares as it finds attract to each the amount of labor required, and no more; if there is too great a run upon particular groups it is a sign that those groups are over-remunerated relatively to others; if any are neglected their remuneration must be made higher. The share of produce assigned to each group is divided in fixed proportions among three elements—labor, capital, and talent; the part assigned to talent being awarded by the suffrages of the group itself, and it is hoped that among the variety of human [122]capacities all, or nearly all, will be qualified to excel in some group or other. The remuneration for capital is to be such as is found sufficient to induce savings from individual consumption, in order to increase the common stock to such point as is desired. The number and ingenuity of the contrivances for meeting minor difficulties, and getting rid of minor inconveniencies, is very remarkable. By means of these various provisions it is the expectation of Fourierists that the personal inducements to exertion for the public interest, instead of being taken away, would be made much greater than at present, since every increase of the service rendered would be much more certain of leading to increase of reward than it is now, when accidents of position have so much influence. The efficiency of labor, they therefore expect, would be unexampled, while the saving of labor would be prodigious, by diverting to useful occupations that which is now wasted on things useless or hurtful, and by dispensing with the vast number of superfluous distributors, the buying and selling for the whole community being managed by a single agency. The free choice of individuals as to their manner of life would be no further interfered with than would [123]be necessary for gaining the full advantages of co-operation in the industrial operations. Altogether, the picture of a Fourierist community is both attractive in itself and requires less from common humanity than any other known system of Socialism; and it is much to be desired that the scheme should have that fair trial which alone can test the workableness of any new scheme of social life.[9]

If we need practical experiments to test the effectiveness of Communism, the same goes for other types of Socialism that acknowledge the challenges of Communism and figure out ways to overcome them. The main one is Fourierism, a system that is definitely worth the attention of anyone studying society or the human mind, just for its intellectual creativity. Almost every objection or challenge was anticipated by Fourier, who came up with solutions beforehand using self-operating mechanisms, albeit based on a less idealistic sense of distributive justice than Communism, as he accepts inequalities in distribution and individual ownership of capital, but not its arbitrary disposal. The major issue he tackles is how to make labor appealing because if this could be achieved, the biggest hurdle for Socialism would be cleared. He argues that no type of useful labor is inherently or universally unpleasant unless it's too demanding, lacks companionship and competition, or is looked down upon by society. In a Fourierist village, individuals would spontaneously form groups, with each group focusing on a different type of work, and one person could belong to multiple groups; after reserving a minimum for everyone's basic needs, whether or not they can work, the society would distribute the rest of the output among the groups in a way that reflects the labor needed—no more. If one group gets too much attention, it shows they are overcompensated compared to others; if a group is overlooked, their pay must be increased. Each group’s share of the output is divided into three elements—labor, capital, and talent; the portion for talent is determined by votes from the group, and it’s hoped that among the range of human abilities, almost everyone will have a chance to shine in some group. The compensation for capital should be enough to encourage saving from individual spending, to grow the common resources to the desired level. The number and creativity of solutions for addressing minor issues and inconveniences are quite impressive. Through these various strategies, Fourierists expect that personal motivation for public benefit will be enhanced rather than diminished, as a greater contribution would lead to a more certain reward than it currently does, where personal circumstances play such a significant role. They anticipate that labor efficiency would be unparalleled, while the overall labor needed would decrease, by redirecting efforts from wasteful or harmful activities to useful ones, and by eliminating a large number of unnecessary distributors, as buying and selling for the entire community would be handled by a single agency. Individuals' free choices regarding their lifestyles would only be limited as much as necessary to maximize the benefits of collaboration in industrial activities. Overall, the vision of a Fourierist community is appealing and demands less from humanity than any other known Socialist system; it is highly desirable that this approach receives a fair trial to truly assess the viability of any new social structure.

The result of our review of the various difficulties of Socialism has led us to the conclusion that the various schemes for managing the productive resources of the country by public instead of private agency have a case for a trial, and some of them may eventually establish their claims to preference over the existing order of things, but that they are at present workable [124]only by the élite of mankind, and have yet to prove their power of training mankind at large to the state of improvement which they presuppose. Far more, of course, may this be said of the more ambitious plan which aims at taking possession of the whole land and capital of the country, and beginning at once to administer it on the public account. Apart from all consideration of injustice to the present possessors, the very idea of conducting the whole industry of a country by direction from a single centre is so obviously chimerical, that nobody ventures to propose any mode in which it should be done; and it can hardly be doubted that if the revolutionary Socialists attained their immediate object, and actually had the whole property of the country at their disposal, they would find no other practicable mode of exercising their power over it than that of dividing it into portions, each to be made over to the administration of a small Socialist community. The problem of management, which we have seen to be so difficult even to a select population well prepared beforehand, would be thrown down to be solved as best it could by aggregations united only by locality, or taken indiscriminately from [125]the population, including all the malefactors, all the idlest and most vicious, the most incapable of steady industry, forethought, or self-control, and a majority who, though not equally degraded, are yet, in the opinion of Socialists themselves as far as regards the qualities essential for the success of Socialism, profoundly demoralised by the existing state of society. It is saying but little to say that the introduction of Socialism under such conditions could have no effect but disastrous failure, and its apostles could have only the consolation that the order of society as it now exists would have perished first, and all who benefit by it would be involved in the common ruin—a consolation which to some of them would probably be real, for if appearances can be trusted the animating principle of too many of the revolutionary Socialists is hate; a very excusable hatred of existing evils, which would vent itself by putting an end to the present system at all costs even to those who suffer by it, in the hope that out of chaos would arise a better Kosmos, and in the impatience of desperation respecting any more gradual improvement. They are unaware that chaos is the very most unfavorable position for setting out in the construction of a Kosmos, and that many ages of conflict, [126]violence, and tyrannical oppression of the weak by the strong must intervene; they know not that they would plunge mankind into the state of nature so forcibly described by Hobbes (Leviathan, Part I. ch. xiii.), where every man is enemy to every man:—

The outcome of our examination of the challenges of Socialism has led us to conclude that the different plans for managing the country's productive resources through public rather than private means deserve a trial, and some of them might ultimately prove to be preferable to the current system, but they can only be implemented right now by the elite of society. They still need to demonstrate their ability to prepare society at large for the improvements they assume. This is even more true for the more ambitious plan that seeks to take control of all the land and capital of the country and manage it for public benefit right away. Beyond concerns about fairness to current owners, the very idea of running a country's entire industry from a single center is clearly impractical; no one dares suggest how it could be done. It’s unlikely that if the revolutionary Socialists achieved their goal and had control over all property, they would find any feasible way to operate it other than by splitting it into parts, each to be run by a small Socialist community. The management issues, which we know are already quite difficult even for a well-prepared select group, would then have to be handled by local groups or randomly chosen from the population, including all the criminals, the laziest and most debauched, those least capable of consistent work, planning, or self-discipline, and a majority who, while not all equally corrupt, are still regarded by Socialists as being significantly demoralized by the current state of society when it comes to the qualities necessary for the success of Socialism. It’s an understatement to say that introducing Socialism under these conditions would only lead to catastrophic failure, and its supporters could only take comfort in the fact that the existing social order would have collapsed first, and all who benefit from it would face collective downfall—a comfort that for some might be genuine, since if appearances hold true, many revolutionary Socialists are driven by hate; a somewhat understandable hatred of current problems that would be expressed by eliminating the present system at any cost, even to those harmed by it, in the hope that something better would emerge from the chaos, fueled by desperation for any improvement, even gradual ones. They don’t realize that chaos is actually the worst starting point for building a new order, and that extensive periods of conflict, violence, and oppression of the weak by the strong would have to occur first; they do not understand that they would throw humanity back into the state of nature famously described by Hobbes, where every person is an enemy to everyone else:—

"In such condition there is no place for industry, because the fruit thereof is uncertain, and consequently no culture of the earth, no navigation, no use of the commodities that may be imported by sea, no commodious building, no instruments of moving and removing such things as require much force, no knowledge of the face of the earth, no account of time, no arts, no letters, no society; and, which is worst of all, continual fear and danger of violent death; and the life of man solitary, poor, nasty, brutish, and short."

"In such a situation, there’s no room for industry because the results are unpredictable. This leads to no farming, no sea trade, no use of goods that could be imported by sea, no proper buildings, no tools for moving heavy things, no understanding of the land, no sense of time, no arts, no writing, no community; and worst of all, constant fear and the threat of violent death. Life is solitary, poor, dirty, brutal, and short."

If the poorest and most wretched members of a so-called civilised society are in as bad a condition as every one would be in that worst form of barbarism produced by the dissolution of civilised life, it does not follow that the way to raise them would be to reduce all others to the same miserable state. On the contrary, it is by the aid of the first who have risen that so many others have escaped from the general lot, and it is only by better organization of the same process that it may be hoped in time to succeed in raising the remainder.

If the poorest and most miserable members of a so-called civilized society are in as bad a condition as everyone would be in the worst kind of barbarism caused by the breakdown of civilized life, it doesn’t mean that the solution is to bring everyone else down to the same level of misery. On the contrary, it’s through the support of those who have risen that many others have managed to escape that fate, and it’s only through better organizing of this process that we can hope to eventually raise the rest up as well.


The Concept of Private Property is Not Fixed but Variable.[127]

The preceding considerations appear sufficient to show that an entire renovation of the social fabric, such as is contemplated by Socialism, establishing the economic constitution of society upon an entirely new basis, other than that of private property and competition, however valuable as an ideal, and even as a prophecy of ultimate possibilities, is not available as a present resource, since it requires from those who are to carry on the new order of things qualities both moral and intellectual, which require to be tested in all, and to be created in most; and this cannot be done by an Act of Parliament, but must be, on the most favorable supposition, a work of considerable time. For a long period to come the principle of individual property will be in possession of the field; and even if in any country a popular movement were to place Socialists at the head of a revolutionary government, in however many ways they might violate private property, the institution itself would survive, and would either be accepted by them or brought back by their expulsion, for the plain reason that people will not lose their hold [128]of what is at present their sole reliance for subsistence and security until a substitute for it has been got into working order. Even those, if any, who had shared among themselves what was the property of others would desire to keep what they had acquired, and to give back to property in the new hands the sacredness which they had not recognised in the old.

The previous points seem enough to demonstrate that a complete overhaul of society, like what Socialism proposes, which aims to set up the economic framework of society on a completely new foundation, different from private ownership and competition, while valuable as an ideal and even a vision of potential outcomes, is not a practical resource at this moment. This change requires individuals who will manage the new systems to have both moral and intellectual qualities, which need to be proven in everyone and developed in most. This isn’t something that can be achieved through an Act of Parliament; rather, it must take considerable time even under the best circumstances. For the foreseeable future, the principle of private property will dominate. Even if a widespread movement were to elevate Socialists to a revolutionary government in any country, regardless of how they might infringe upon private property, the concept itself would remain intact and either be accepted by them or reinstated after their removal. The simple reason is that people are not willing to give up their reliance on what is currently their main source of livelihood and security until a viable alternative is established. Even those who might share what was once someone else's property would want to keep what they obtained and restore the value of property in the new hands that they didn't acknowledge in the old.

But though, for these reasons, individual property has presumably a long term before it, if only of provisional existence, we are not, therefore, to conclude that it must exist during that whole term unmodified, or that all the rights now regarded as appertaining to property belong to it inherently, and must endure while it endures. On the contrary, it is both the duty and the interest of those who derive the most direct benefit from the laws of property to give impartial consideration to all proposals for rendering those laws in any way less onerous to the majority. This, which would in any case be an obligation of justice, is an injunction of prudence also, in order to place themselves in the right against the attempts which are sure to be frequent to bring the Socialist forms of society prematurely into operation.

But even though individual property likely has a long-term future ahead of it, even if only temporarily, we shouldn’t conclude that it must exist unchanged for that entire time or that all the rights we currently associate with property are inherently part of it and must last as long as it does. On the contrary, it’s both the responsibility and the interest of those who benefit most directly from property laws to consider all proposals for making those laws less burdensome for the majority. This obligation not only aligns with justice but also serves as a precaution to position themselves favorably against the inevitable attempts to push Socialist societal structures into action prematurely.

[129]One of the mistakes oftenest committed, and which are the sources of the greatest practical errors in human affairs, is that of supposing that the same name always stands for the same aggregation of ideas. No word has been the subject of more of this kind of misunderstanding than the word property. It denotes in every state of society the largest powers of exclusive use or exclusive control over things (and sometimes, unfortunately, over persons) which the law accords, or which custom, in that state of society, recognizes; but these powers of exclusive use and control are very various, and differ greatly in different countries and in different states of society.

[129]One of the most common mistakes, and a major source of practical errors in human affairs, is assuming that the same name always represents the same set of ideas. No word has been more misunderstood than the word property. It signifies, in every society, the greatest rights of exclusive use or control over things (and sometimes, regrettably, over people) that the law grants or that custom recognizes in that society; however, these rights of exclusive use and control vary significantly and differ widely between countries and different social contexts.

For instance, in early states of society, the right of property did not include the right of bequest. The power of disposing of property by will was in most countries of Europe a rather late institution; and long after it was introduced it continued to be limited in favor of what were called natural heirs. Where bequest is not permitted, individual property is only a life interest. And in fact, as has been so well and fully set forth by Sir Henry Maine in his most instructive work on Ancient Law, the primitive [130]idea of property was that it belonged to the family, not the individual. The head of the family had the management and was the person who really exercised the proprietary rights. As in other respects, so in this, he governed the family with nearly despotic power. But he was not free so to exercise his power as to defeat the co-proprietors of the other portions; he could not so dispose of the property as to deprive them of the joint enjoyment or of the succession. By the laws and customs of some nations the property could not be alienated without the consent of the male children; in other cases the child could by law demand a division of the property and the assignment to him of his share, as in the story of the Prodigal Son. If the association kept together after the death of the head, some other member of it, not always his son, but often the eldest of the family, the strongest, or the one selected by the rest, succeeded to the management and to the managing rights, all the others retaining theirs as before. If, on the other hand the body broke up into separate families, each of these took away with it a part of the property. I say the property, not the inheritance, because the process was a mere continuance of existing [131]rights, not a creation of new; the manager's share alone lapsed to the association.

For example, in the early stages of society, the right to own property didn’t include the right to leave it in a will. The ability to dispose of property through a will was introduced in most European countries fairly late; and even after it was established, it was often restricted in favor of what were called natural heirs. When wills aren’t allowed, personal property is only held for one's lifetime. As Sir Henry Maine has thoroughly explained in his insightful book on Ancient Law, the original idea of property was that it belonged to the family, not to an individual. The head of the family managed it and effectively exercised the ownership rights. Much like in other areas, he exercised nearly absolute power over the family. However, he couldn’t use that power to disadvantage the other co-owners; he couldn’t manage the property in a way that took away their shared use or their inheritance. According to the laws and customs of some nations, property couldn’t be sold without the consent of the male children; in other situations, a child could legally request a division of the property and his share, like in the story of the Prodigal Son. If the family unit stayed intact after the death of the head, another member—who wasn’t always his son, but often the eldest, the strongest, or someone chosen by the others—took over the management and rights, while everyone else retained theirs. If, however, the group split into separate families, each would take a portion of the property with them. I use the term property, not inheritance, because this process was simply a continuation of existing rights, not the creation of new ones; only the manager's share was lost to the group.

Then, again, in regard to proprietary rights over immovables (the principal kind of property in a rude age) these rights were of very varying extent and duration. By the Jewish law property in immovables was only a temporary concession; on the Sabbatical year it returned to the common stock to be redistributed; though we may surmise that in the historical times of the Jewish state this rule may have been successfully evaded. In many countries of Asia, before European ideas intervened, nothing existed to which the expression property in land, as we understand the phrase, is strictly applicable. The ownership was broken up among several distinct parties, whose rights were determined rather by custom than by law. The government was part owner, having the right to a heavy rent. Ancient ideas and even ancient laws limited the government share to some particular fraction of the gross produce, but practically there was no fixed limit. The government might make over its share to an individual, who then became possessed of the right of collection and all the other rights of the state, but not those of any private [132]person connected with the soil. These private rights were of various kinds. The actual cultivators or such of them as had been long settled on the land, had a right to retain possession; it was held unlawful to evict them while they paid the rent—a rent not in general fixed by agreement, but by the custom of the neighborhood. Between the actual cultivators and the state, or the substitute to whom the state had transferred its rights, there were intermediate persons with rights of various extent. There were officers of government who collected the state's share of the produce, sometimes for large districts, who, though bound to pay over to government all they collected, after deducting a percentage, were often hereditary officers. There were also, in many cases village communities, consisting of the reputed descendants of the first settlers of a village, who shared among themselves either the land or its produce according to rules established by custom, either cultivating it themselves or employing others to cultivate it for them, and whose rights in the land approached nearer to those of a landed proprietor, as understood in England, than those of any other party concerned. But the proprietary right of the village was not [133]individual, but collective; inalienable (the rights of individual sharers could only be sold or mortgaged with the consent of the community) and governed by fixed rules. In mediæval Europe almost all land was held from the sovereign on tenure of service, either military or agricultural; and in Great Britain even now, when the services as well as all the reserved rights of the sovereign have long since fallen into disuse or been commuted for taxation, the theory of the law does not acknowledge an absolute right of property in land in any individual; the fullest landed proprietor known to the law, the freeholder, is but a "tenant" of the Crown. In Russia, even when the cultivators of the soil were serfs of the landed proprietor, his proprietary right in the land was limited by rights of theirs belonging to them as a collective body managing its own affairs, and with which he could not interfere. And in most of the countries of continental Europe when serfage was abolished or went out of use, those who had cultivated the land as serfs remained in possession of rights as well as subject to obligations. The great land reforms of Stein and his successors in Prussia consisted in abolishing both the rights and the [134]obligations, and dividing the land bodily between the proprietor and the peasant, instead of leaving each of them with a limited right over the whole. In other cases, as in Tuscany, the metayer farmer is virtually co-proprietor with the landlord, since custom, though not law, guarantees to him a permanent possession and half the gross produce, so long as he fulfils the customary conditions of his tenure.

Then again, regarding property rights over immovable assets (the main type of property in a primitive society), these rights varied significantly in scope and duration. According to Jewish law, ownership of immovable property was only a temporary concession; during the Sabbatical year, it reverted to the community for redistribution. However, it’s likely that during the historical period of the Jewish state, this rule was often bypassed. In many Asian countries, before European concepts were introduced, there was no clear definition of "property in land" as we understand it today. Ownership was fragmented among multiple distinct parties, with rights mostly determined by customs rather than legal statutes. The government had a share in ownership and the right to collect significant rents. Ancient concepts and laws limited the government's share to a specific fraction of the total produce, but there was practically no fixed cap. The government could transfer its share to an individual, who would then gain the right to collect and all the other rights of the state, but not those belonging to any private individual related to the land. These private rights varied. Actual cultivators or those who had long settled on the land had the right to keep possession; it was generally deemed illegal to evict them as long as they paid rent, which was typically determined by local custom rather than a fixed agreement. There were intermediate parties with varying degrees of rights between the actual cultivators and the state or its representatives. Some government officials collected the state’s share of the produce, sometimes for large areas, and were obligated to pay the government everything they collected after deducting a percentage, though many were hereditary officers. In many cases, there were village communities made up of the reputed descendants of the original settlers, sharing either the land or its produce based on traditional rules. They cultivated it themselves or hired others to do so, and their rights to the land were closer to those of a landed proprietor, as understood in England, than those of any other involved parties. However, the village's property rights were collective rather than individual; they were inalienable (individual members could only sell or mortgage their rights with the community's consent) and regulated by established rules. In medieval Europe, almost all land was held from the sovereign in exchange for services, whether military or agricultural; even today in Great Britain, where such services and all sovereign reserved rights have largely become obsolete or been replaced by taxation, the law still does not recognize an absolute property right in land for any individual person. The most complete landowner recognized by law, the freeholder, is essentially a "tenant" of the Crown. In Russia, even when land cultivators were serfs of the landowner, the landowner's rights were restricted by collective rights held by the cultivators, which the owner could not infringe upon. In most continental European countries, when serfdom was abolished or fell out of use, those who had farmed the land as serfs retained certain rights as well as obligations. The major land reforms by Stein and his successors in Prussia aimed at abolishing both rights and obligations, dividing the land entirely between the landowner and the peasant, rather than leaving each with limited rights over the whole. In other instances, like in Tuscany, the metayer farmer is essentially a co-owner with the landlord, since custom, although not legally binding, assures him permanent possession and half of the gross produce as long as he meets the customary conditions of his tenure.

Again: if rights of property over the same things are of different extent in different countries, so also are they exercised over different things. In all countries at a former time, and in some countries still, the right of property extended and extends to the ownership of human beings. There has often been property in public trusts, as in judicial offices, and a vast multitude of others in France before the Revolution; there are still a few patent offices in Great Britain, though I believe they will cease by operation of law on the death of the present holders; and we are only now abolishing property in army rank. Public bodies, constituted and endowed for public purposes, still claim the same inviolable right of property in their estates which individuals have in theirs, and though a sound [135]political morality does not acknowledge this claim, the law supports it. We thus see that the right of property is differently interpreted, and held to be of different extent, in different times and places; that the conception entertained of it is a varying conception, has been frequently revised, and may admit of still further revision. It is also to be noticed that the revisions which it has hitherto undergone in the progress of society have generally been improvements. When, therefore, it is maintained, rightly or wrongly, that some change or modification in the powers exercised over things by the persons legally recognised as their proprietors would be beneficial to the public and conducive to the general improvement, it is no good answer to this merely to say that the proposed change conflicts with the idea of property. The idea of property is not some one thing, identical throughout history and incapable of alteration, but is variable like all other creations of the human mind; at any given time it is a brief expression denoting the rights over things conferred by the law or custom of some given society at that time; but neither on this point nor on any other has the law and custom of a given time and place a claim to be [136]stereotyped for ever. A proposed reform in laws or customs is not necessarily objectionable because its adoption would imply, not the adaptation of all human affairs to the existing idea of property, but the adaptation of existing ideas of property to the growth and improvement of human affairs. This is said without prejudice to the equitable claim of proprietors to be compensated by the state for such legal rights of a proprietary nature as they may be dispossessed of for the public advantage. That equitable claim, the grounds and the just limits of it, are a subject by itself, and as such will be discussed hereafter. Under this condition, however, society is fully entitled to abrogate or alter any particular right of property which on sufficient consideration it judges to stand in the way of the public good. And assuredly the terrible case which, as we saw in a former chapter, Socialists are able to make out against the present economic order of society, demands a full consideration of all means by which the institution may have a chance of being made to work in a manner more beneficial to that large portion of society which at present enjoys the least share of its direct benefits.

Again: if property rights over the same things vary in different countries, they also apply to different things. In the past, and in some places still today, the right of property extended to the ownership of human beings. There has often been property in public trusts, like judicial offices, and many others in France before the Revolution; there are still a few patent offices in Great Britain, although they will likely cease to exist when the current holders pass away; and we are only just ending property in military rank. Public entities, established and funded for public purposes, still claim the same inviolable property rights in their assets that individuals have in theirs, and even though solid political ethics do not support this claim, the law backs it up. Thus, we see that the right to property is interpreted differently and seen as varying in extent across different times and places; the understanding of it changes over time, has been frequently updated, and may be revised even further. It's also worth noting that the changes it has undergone in society's progress have generally been improvements. Therefore, when someone argues, correctly or incorrectly, that some change or modification in the rights related to things held by those legally recognized as their owners would benefit the public and aid overall improvement, it's not enough to simply say that the proposed change conflicts with the idea of property. The concept of property is not a single, unchanging thing throughout history; it is fluid like other human-made concepts. At any given time, it briefly represents the rights over things defined by the laws or customs of a specific society at that time; however, neither the laws nor customs of a particular time and place have the right to be [136]frozen in time forever. A proposed change in laws or customs isn't necessarily objectionable just because it would mean not aligning all human affairs with the existing idea of property but instead adapting existing ideas of property to the evolution and improvement of human affairs. This statement does not undermine the fair claim of property owners to be compensated by the state for any legal rights they may lose for the public good. That fair claim, along with its rationale and appropriate limits, is a topic on its own and will be discussed later. Under these conditions, society has every right to abolish or change any specific property right that it reasonably believes hinders the public good. And undeniably, the serious case laid out by Socialists against the current economic system, as we saw in a previous chapter, requires a thorough examination of all methods that could enhance the institution to better serve the large portion of society that currently reaps the fewest direct benefits.



THE END.



FOOTNOTES:

[1] See Louis Blanc, "Organisation du Travail," 4me edition, pp. 6, 11, 53, 57.

[1] See Louis Blanc, "Organization of Labor," 4th edition, pp. 6, 11, 53, 57.

[2] See Louis Blanc, "Organisation du Travail," pp. 58-61, 65-66, 4me edition. Paris, 1845.

[2] See Louis Blanc, "Organization of Labor," pp. 58-61, 65-66, 4th edition. Paris, 1845.

[3] See Considérant, "Destinée Sociale," tome i. pp. 35, 36, 37, 3me ed. Paris, 1848.

[3] See Considérant, "Social Destiny," vol. i, pp. 35, 36, 37, 3rd ed. Paris, 1848.

[4] See "Destinée Sociale," par V. Considérant, tome i. pp. 38-40.

[4] See "Social Destiny," by V. Considérant, vol. 1, pp. 38-40.

[5] See Considérant, "Destinée Sociale," tome i. pp. 43-51, 3me. edition, Paris, 1848.

[5] See Considérant, "Social Destiny," vol. i, pp. 43-51, 3rd edition, Paris, 1848.

[6] Considérant, "Destinée Sociale," tome i., pp. 59, 60.

[6] Considering, "Social Destiny," vol. i., pp. 59, 60.

[7] Considérant, "Destinée Sociale," tome i., pp. 60, 61.

[7] Considering, "Social Destiny," vol. i, pp. 60, 61.

[8] Considérant, "Destinée Sociale," tome i., p. 134.

[8] Considering, "Social Destiny," vol. i., p. 134.

[9] The principles of Fourierism are clearly set forth and powerfully defended in the various writings of M. Victor Considérant, especially that entitled La Destinée Sociale; but the curious inquirer will do well to study them in the writings of Fourier himself; where he will find unmistakable proofs of genius, mixed, however with the wildest and most unscientific fancies respecting the physical world, and much interesting but rash speculation on the past and future history of humanity. It is proper to add that on some important social questions, for instance on marriage, Fourier had peculiar opinions, which, however, as he himself declares, are quite independent of, and separable from, the principles of his industrial system.

[9] The principles of Fourierism are clearly explained and strongly defended in the various writings of M. Victor Considérant, especially in his work titled La Destinée Sociale; however, those interested should also examine Fourier's own writings, where they will find undeniable evidence of brilliance, though it is often mixed with the wildest and most unscientific ideas about the physical world, along with much intriguing but questionable speculation on humanity's past and future. It's also important to note that on some key social issues, like marriage, Fourier had unique views which he claims are completely separate from and do not affect his industrial system principles.




Typographical errors corrected in text:

Typos fixed in text:


Page   14:  founddation replaced with foundation
Page   15:  Congressses replaced with Congresses
Page   22:  moreever replaced with moreover
Page   28:  Dominitian replaced with Domitian
Page   42:  monoply replaced with monopoly
Page   44:  extention replaced with extension
Page   84:  conditon replaced with condition
Page   86:  occassionally replaced with occasionally
Page   94:  wisdon replaced with wisdom
Page   96:  recieved replaced with received
Page 123: FN 9:  Considerant replaced with Considérant
Page 123: FN 9:  Destinee replaced with Destinée






        
        
    
Download ePUB

If you like this ebook, consider a donation!