Engels Friedrich
Socialism, Utopian and Scientific
III
The materialist conception of history starts from the proposition that the production of the means to support human life and, next to production, the exchange of things produced, is the basis of all social structure; that in every society that has appeared in history, the manner in which wealth is distributed and society divided into classes or orders, is dependent upon what is produced, how it is produced, and how the products are exchanged. From this point of view the final causes of all social changes and political revolutions are to be sought, not in men's brains, not in man's better insight into eternal truth and justice, but in changes in the modes of production and exchange. They are to be sought, not in the philosophy, but in the economics of each particular epoch. The growing perception that existing social institutions are unreasonable and unjust, that reason has become unreason, and right wrong, is only proof that in the modes of production and exchange changes have silently taken place, with which the social order, adapted to earlier economic conditions, is no longer in keeping. From this it also follows that the means of getting rid of the incongruities that have been brought to light, must also be present, in a more or less developed condition, within the changed modes of production themselves. These means are not to be invented by deduction from fundamental principles, but are to be discovered in the stubborn facts of the existing system of production.
What is, then, the position of modern Socialism in this connection?
The present structure of society – this is now pretty generally conceded – is the creation of the ruling class of to-day, of the bourgeoisie. The mode of production peculiar to the bourgeoisie, known, since Marx, as the capitalist mode of production, was incompatible with the feudal system, with the privileges it conferred upon individuals, entire social ranks and local corporations, as well as with the hereditary ties of subordination which constituted the framework of its social organization. The bourgeoisie broke up the feudal system and built upon its ruins the capitalist order of society, the kingdom of free competition, of personal liberty, of the equality, before the law, of all commodity owners, of all the rest of the capitalist blessings. Thenceforward the capitalist mode of production could develop in freedom. Since steam, machinery, and the making of machines by machinery transformed the older manufacture into modern industry, the productive forces evolved under the guidance of the bourgeoisie developed with a rapidity and in a degree unheard of before. But just as the older manufacture, in its time, and handicraft, becoming more developed under its influence, had come into collision with the feudal trammels of the guilds, so now modern industry, in its more complete development, comes into collision with the bounds within which the capitalistic mode of production holds it confined. The new productive forces have already outgrown the capitalistic mode of using them. And this conflict between productive forces and modes of production is not a conflict engendered in the mind of man, like that between original sin and divine justice. It exists, in fact, objectively, outside us, independently of the will and actions even of the men that have brought it on. Modern Socialism is nothing but the reflex, in thought, of this conflict in fact; its ideal reflection in the minds, first, of the class directly suffering under it, the working-class.
Now, in what does this conflict consist?
Before capitalistic production, i. e., in the Middle Ages, the system of petty industry obtained generally, based upon the private property of the laborers in their means of production; in the country, the agriculture of the small peasant, freeman or serf; in the towns, the handicrafts organized in guilds. The instruments of labor – land, agricultural implements, the workshop, the tool – were the instruments of labor of single individuals, adapted for the use of one worker, and, therefore, of necessity, small, dwarfish, circumscribed. But, for this very reason they belonged, as a rule, to the producer himself. To concentrate these scattered, limited means of production, to enlarge them, to turn them into the powerful levers of production of the present day – this was precisely the historic rôle of capitalist production and of its upholder, the bourgeoisie. In the fourth section of "Capital" Marx has explained in detail, how since the fifteenth century this has been historically worked out through the three phases of simple co-operation, manufacture, and modern industry. But the bourgeoisie, as is also shown there, could not transform these puny means of production into mighty productive forces, without transforming them, at the same time, from means of production of the individual into social means of production only workable by a collectivity of men. The spinning-wheel, the handloom, the blacksmith's hammer, were replaced by the spinning-machine, the power-loom, the steam-hammer; the individual workshop, by the factory implying the co-operation of hundreds and thousands of workmen. In like manner, production itself changed from a series of individual into a series of social acts, and the products from individual to social products. The yarn, the cloth, the metal articles that now came out of the factory were the joint product of many workers through whose hands they had successively to pass before they were ready. No one person could say of them: "I made that; this is my product."
But where, in a given society, the fundamental form of production is that spontaneous division of labor which creeps in gradually and not upon any preconceived plan, there the products take on the form of commodities, whose mutual exchange, buying and selling, enable the individual producers to satisfy their manifold wants. And this was the case in the Middle Ages. The peasant, e. g., sold to the artisan agricultural products and bought from him the products of handicraft. Into this society of individual producers, of commodity-producers, the new mode of production thrust itself. In the midst of the old division of labor, grown up spontaneously and upon no definite plan, which had governed the whole of society, now arose division of labor upon a definite plan, as organized in the factory; side by side with individual production appeared social production. The products of both were sold in the same market, and, therefore, at prices at least approximately equal. But organization upon a definite plan was stronger than spontaneous division of labor. The factories working with the combined social forces of a collectivity of individuals produced their commodities far more cheaply than the individual small producers. Individual production succumbed in one department after another. Socialized production revolutionized all the old methods of production. But its revolutionary character was, at the same time, so little recognized, that it was, on the contrary, introduced as a means of increasing and developing the production of commodities. When it arose, it found ready-made, and made liberal use of, certain machinery for the production and exchange of commodities; merchants' capital, handicraft, wage-labor. Socialized production thus introducing itself as a new form of the production of commodities, it was a matter of course that under it the old forms of appropriation remained in full swing, and were applied to its products as well.
In the mediæval stage of evolution of the production of commodities, the question as to the owner of the product of labor could not arise. The individual producer, as a rule, had, from raw material belonging to himself, and generally his own handiwork, produced it with his own tools, by the labor of his own hands or of his family. There was no need for him to appropriate the new product. It belonged wholly to him, as a matter of course. His property in the product was, therefore, based upon his own labor. Even where external help was used, this was, as a rule, of little importance, and very generally was compensated by something other than wages. The apprentices and journeymen of the guilds worked less for board and wages than for education, in order that they might become master craftsmen themselves.
Then came the concentration of the means of production and of the producers in large workshops and manufactories, their transformation into actual socialized means of production and socialized producers. But the socialized producers and means of production and their products were still treated, after this change, just as they had been before, i. e., as the means of production and the products of individuals. Hitherto, the owner of the instruments of labor had himself appropriated the product, because, as a rule, it was his own product and the assistance of others was the exception. Now the owner of the instruments of labor always appropriated to himself the product, although it was no longer his product but exclusively the product of the labor of others. Thus, the products now produced socially were not appropriated by those who had actually set in motion the means of production and actually produced the commodities, but by the capitalists. The means of production, and production itself, had become in essence socialized. But they were subjected to a form of appropriation which presupposes the private production of individuals, under which, therefore, every one owns his own product and brings it to market. The mode of production is subjected to this form of appropriation, although it abolishes the conditions upon which the latter rests.7
This contradiction, which gives to the new mode of production its capitalistic character, contains the germ of the whole of the social antagonisms of to-day. The greater the mastery obtained by the new mode of production over all important fields of production and in all manufacturing countries, the more it reduced individual production to an insignificant residuum, the more clearly was brought out the incompatibility of socialized production with capitalistic appropriation.
The first capitalists found, as we have said, alongside of other forms of labor, wage-labor ready-made for them on the market. But it was exceptional, complementary, accessory, transitory wage-labor. The agricultural laborer, though, upon occasion, he hired himself out by the day, had a few acres of his own land on which he could at all events live at a pinch. The guilds were so organized that the journeyman of to-day became the master of to-morrow. But all this changed, as soon as the means of production became socialized and concentrated in the hands of capitalists. The means of production, as well as the product of the individual producer became more and more worthless; there was nothing left for him but to turn wage-worker under the capitalist. Wage-labor, aforetime the exception and accessory, now became the rule and basis of all production; aforetime complementary, it now became the sole remaining function of the worker. The wage-worker for a time became a wage-worker for life. The number of these permanent wage-workers was further enormously increased by the breaking-up of the feudal system that occurred at the same time, by the disbanding of the retainers of the feudal lords, the eviction of the peasants from their homesteads, etc. The separation was made complete between the means of production concentrated in the hands of the capitalists on the one side, and the producers, possessing nothing but their labor-power, on the other. The contradiction between socialized production and capitalistic appropriation manifested itself as the antagonism of proletariat and bourgeoisie.
We have seen that the capitalistic mode of production thrust its way into a society of commodity-producers, of individual producers, whose social bond was the exchange of their products. But every society, based upon the production of commodities, has this peculiarity: that the producers have lost control over their own social inter-relations. Each man produces for himself with such means of production as he may happen to have, and for such exchange as he may require to satisfy his remaining wants. No one knows how much of his particular article is coming on the market, nor how much of it will be wanted. No one knows whether his individual product will meet an actual demand, whether he will be able to make good his cost of production or even to sell his commodity at all. Anarchy reigns in socialized production.
But the production of commodities, like every other form of production, has its peculiar inherent laws inseparable from it; and these laws work, despite anarchy, in and through anarchy. They reveal themselves in the only persistent form of social inter-relations, i. e., in exchange, and here they affect the individual producers as compulsory laws of competition. They are, at first, unknown to these producers themselves, and have to be discovered by them gradually and as the result of experience. They work themselves out, therefore, independently of the producers, and in antagonism to them, as inexorable natural laws of their particular form of production. The product governs the producers.
In mediæval society especially in the earlier centuries, production was essentially directed towards satisfying the wants of the individual. It satisfied, in the main, only the wants of the producer and his family. Where relations of personal dependence existed, as in the country, it also helped to satisfy the wants of the feudal lord. In all this there was, therefore, no exchange; the products, consequently, did not assume the character of commodities. The family of the peasant produced almost everything they wanted: clothes and furniture, as well as means of subsistence. Only when it began to produce more than was sufficient to supply its own wants and the payments in kind to the feudal lord, only then did it also produce commodities. This surplus, thrown into socialized exchange and offered for sale, became commodities.
The artisans of the towns, it is true, had from the first to produce for exchange. But they, also, themselves supplied the greatest part of their own individual wants. They had gardens and plots of land. They turned their cattle out into the communal forest, which, also, yielded them timber and firing. The women spun flax, wool, and so forth. Production for the purpose of exchange, production of commodities, was only in its infancy. Hence, exchange was restricted, the market narrow, the methods of production stable; there was local exclusiveness without, local unity within; the mark8 in the country, in the town, the guild.
But with the extension of the production of commodities, and especially with the introduction of the capitalist mode of production, the laws of commodity-production, hitherto latent, came into action more openly and with greater force. The old bonds were loosened, the old exclusive limits broken through, the producers were more and more turned into independent, isolated producers of commodities. It became apparent that the production of society at large was ruled by absence of plan, by accident, by anarchy; and this anarchy grew to greater and greater height. But the chief means by aid of which the capitalist mode of production intensified this anarchy of socialized production, was the exact opposite of anarchy. It was the increasing organization of production, upon a social basis, in every individual productive establishment. By this, the old, peaceful, stable condition of things was ended. Wherever this organization of production was introduced into a branch of industry, it brooked no other method of production by its side. The field of labor became a battle-ground. The great geographical discoveries, and the colonization following upon them, multiplied markets and quickened the transformation of handicraft into manufacture. The war did not simply break out between the individual producers of particular localities. The local struggles begat in their turn national conflicts, the commercial wars of the seventeenth and the eighteenth centuries.
Finally, modern industry and the opening of the world-market made the struggle universal, and at the same time gave it an unheard-of virulence. Advantages in natural or artificial conditions of production now decide the existence or non-existence of individual capitalists, as well as of whole industries and countries. He that falls is remorselessly cast aside. It is the Darwinian struggle of the individual for existence transferred from Nature to society with intensified violence. The conditions of existence natural to the animal appear as the final term of human development. The contradiction between socialized production and capitalistic appropriation now presents itself as an antagonism between the organization of production in the individual workshop and the anarchy of production in society generally.
The capitalistic mode of production moves in these two forms of the antagonism immanent to it from its very origin. It is never able to get out of that "vicious circle," which Fourier had already discovered. What Fourier could not, indeed, see in his time is, that this circle is gradually narrowing; that the movement becomes more and more a spiral, and must come to an end, like the movement of the planets, by collision with the center. It is the compelling force of anarchy in the production of society at large that more and more completely turns the great majority of men into proletarians; and it is the masses of the proletariat again who will finally put an end to anarchy in production. It is the compelling force of anarchy in social production that turns the limitless perfectibility of machinery under modern industry into a compulsory law by which every individual industrial capitalist must perfect his machinery more and more, under penalty of ruin.
But the perfecting of machinery is making human labor superfluous. If the introduction and increase of machinery means the displacement of millions of manual, by a few machine-workers, improvement in machinery means the displacement of more and more of the machine-workers themselves. It means, in the last instance, the production of a number of available wage-workers in excess of the average needs of capital, the formation of a complete industrial reserve army, as I called it in 1845,9 available at the times when industry is working at high pressure, to be cast out upon the street when the inevitable crash comes, a constant dead weight upon the limbs of the working-class in its struggle for existence with capital, a regulator for the keeping of wages down to the low level that suits the interests of capital. Thus it comes about, to quote Marx, that machinery becomes the most powerful weapon in the war of capital against the working-class; that the instruments of labor constantly tear the means of subsistence out of the hands of the laborer; that the very product of the worker is turned into an instrument for his subjugation. Thus it comes about that the economizing of the instruments of labor becomes at the same time, from the outset, the most reckless waste of labor-power, and robbery based upon the normal conditions under which labor functions; that machinery, "the most powerful instrument for shortening labor-time, becomes the most unfailing means for placing every moment of the laborer's time and that of his family at the disposal of the capitalist for the purpose of expanding the value of his capital" ("Capital," American edition, p. 445). Thus it comes about that over-work of some becomes the preliminary condition for the idleness of others, and that modern industry, which hunts after new consumers over the whole world, forces the consumption of the masses at home down to a starvation minimum, and in doing thus destroys its own home market. "The law that always equilibrates the relative surplus population, or industrial reserve army, to the extent and energy of accumulation, this law rivets the laborer to capital more firmly than the wedges of Vulcan did Prometheus to the rock. It establishes an accumulation of misery, corresponding with accumulation of capital. Accumulation of wealth at one pole is, therefore, at the same time, accumulation of misery, agony of toil, slavery, ignorance, brutality, mental degradation, at the opposite pole, i. e., on the side of the class that produces its own product in the form of capital." (Marx' "Capital" Vol. I [Kerr & Co.]. p. 709.) And to expect any other division of the products from the capitalistic mode of production is the same as expecting the electrodes of a battery not to decompose acidulated water, not to liberate oxygen at the positive, hydrogen at the negative pole, so long as they are connected with the battery.
We have seen that the ever-increasing perfectibility of modern machinery is, by the anarchy of social production, turned into a compulsory law that forces the individual industrial capitalist always to improve his machinery always to increase its productive force. The bare possibility of extending the field of production is transformed for him into a similar compulsory law. The enormous expansive force of modern industry, compared with which that of gases is mere child's play, appears to us now as a necessity for expansion, both qualitative and quantitative, that laughs at all resistance. Such resistance is offered by consumption, by sales, by the markets for the products of modern industry. But the capacity for extension, extensive and intensive, of the markets is primarily governed by quite different laws, that work much less energetically. The extension of the markets can not keep pace with the extension of production. The collision becomes inevitable, and as this cannot produce any real solution so long as it does not break in pieces the capitalist mode of production, the collisions become periodic. Capitalist production has begotten another "vicious circle."
As a matter of fact, since 1825, when the first general crisis broke out, the whole industrial and commercial world, production and exchange among all civilized peoples and their more or less barbaric hangers-on, are thrown out of joint about once every ten years. Commerce is at a stand-still, the markets are glutted, products accumulate, as multitudinous as they are unsaleable, hard cash disappears, credit vanishes, factories are closed, the mass of the workers are in want of the means of subsistence, because they have produced too much of the means of subsistence; bankruptcy follows upon bankruptcy, execution upon execution. The stagnation lasts for years; productive forces and products are wasted and destroyed wholesale, until the accumulated mass of commodities finally filter off, more or less depreciated in value, until production and exchange gradually begin to move again. Little by little the pace quickens. It becomes a trot. The industrial trot breaks into a canter, the canter in turn grows into the headlong gallop of a perfect steeplechase of industry, commercial credit, and speculation, which finally, after breakneck leaps, ends where it began – in the ditch of a crisis. And so over and over again. We have now, since the year 1825, gone through this five times, and at the present moment (1877) we are going through it for the sixth time. And the character of these crises is so clearly defined that Fourier hit all of them off, when he described the first as "crise pléthorique," a crisis from plethora.
In these crises, the contradiction between socialized production and capitalist appropriation ends in a violent explosion. The circulation of commodities is, for the time being, stopped. Money, the means of circulation, becomes a hindrance to circulation. All the laws of production and circulation of commodities are turned upside down. The economic collision has reached its apogee. The mode of production is in rebellion against the mode of exchange.
The fact that the socialized organization of production within the factory has developed so far that it has become incompatible with the anarchy of production in society, which exists side by side with and dominates it, is brought home to the capitalists themselves by the violent concentration of capital that occurs during crises, through the ruin of many large, and a still greater number of small, capitalists. The whole mechanism of the capitalist mode of production breaks down under the pressure of the productive forces, its own creations. It is no longer able to turn all this mass of means of production into capital. They lie fallow, and for that very reason the industrial reserve army must also lie fallow. Means of production, means of subsistence, available laborers, all the elements of production and of general wealth, are present in abundance. But "abundance becomes the source of distress and want" (Fourier), because it is the very thing that prevents the transformation of the means of production and subsistence into capital. For in capitalistic society the means of production can only function when they have undergone a preliminary transformation into capital, into the means of exploiting human labor-power. The necessity of this transformation into capital of the means of production and subsistence stands like a ghost between these and the workers. It alone prevents the coming together of the material and personal levers of production; it alone forbids the means of production to function, the workers to work and live. On the one hand, therefore, the capitalistic mode of production stands convicted of its own incapacity to further direct these productive forces. On the other, these productive forces themselves, with increasing energy, press forward to the removal of the existing contradiction, to the abolition of their quality as capital, to the practical recognition of their character as social productive forces.
This rebellion of the productive forces, as they grow more and more powerful, against their quality as capital, this stronger and stronger command that their social character shall be recognized, forces the capitalist class itself to treat them more and more as social productive forces, so far as this is possible under capitalist conditions. The period of industrial high pressure, with its unbounded inflation of credit, not less than the crash itself, by the collapse of great capitalist establishments, tends to bring about that form of the socialization of great masses of means of production, which we meet with in the different kinds of joint-stock companies. Many of these means of production and of distribution are, from the outset, so colossal, that, like the railroads, they exclude all other forms of capitalistic exploitation. At a further stage of evolution this form also becomes insufficient. The producers on a large scale in a particular branch of industry in a particular country unite in a "Trust," a union for the purpose of regulating production. They determine the total amount to be produced, parcel it out among themselves, and thus enforce the selling price fixed beforehand. But trusts of this kind, as soon as business becomes bad, are generally liable to break up, and, on this very account, compel a yet greater concentration of association. The whole of the particular industry is turned into one gigantic joint-stock company; internal competition gives place to the internal monopoly of this one company. This has happened in 1890 with the English alkali production, which is now, after the fusion of 48 large works, in the hands of one company, conducted upon a single plan, and with a capital of £6,000,000.
In the trusts, freedom of competition changes into its very opposite – into monopoly; and the production without any definite plan of capitalistic society capitulates to the production upon a definite plan of the invading socialistic society. Certainly this is so far still to the benefit and advantage of the capitalists. But in this case the exploitation is so palpable that it must break down. No nation will put up with production conducted by trusts, with so barefaced an exploitation of the community by a small band of dividend-mongers.
