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Thus far, I have dealt with the subject in icy cold blood as a purely economic problem wholly excluding all considerations of humanity. It must be dealt with in that way if we are to deal with it intelligently. What must be will be, however dearly we may wish it otherwise. But we do not wish to go home with ice in our souls, and let us see if we cannot find some reflections more comforting. I am sure that we can.

I have said that humanitarianism has no legitimate place in economic discussion and it has not. But it has a very large place outside economic theory and often in contact with economic results.

There may be economic gains which ought to be and will be surrendered for social gains, as long as we can do it and live. A very reliable test of the prosperity of a Society is the extent to which it can without distress, surrender economic goods in exchange for social goods.

I have attacked Socialism, not Socialists. Multitudes of Socialists are most charming men and women, and the aspirations of pure Socialism are the noblest of which the human mind can conceive. How impossible they are of realization I think they are, I have endeavored to show. But there are individualists whose ideals are equally noble. Any conception that Socialists as a class are upon a higher ethical plane than individualists may be dismissed. Personally, I fear that at present the average ethical plane of Socialists is below that of opponents for the allurements of Socialistic theory have attracted to that cult a great number of the economically impotent, but nevertheless greedy, who know nothing and care less about Socialistic theory but lust for that which they have never earned. It is they who promote class hatred as well as class consciousness. They are an effective offset, morally, to the greedy and consciousless employers who nevertheless perform a useful economic function which the greedy among the Socialists do not.

But, my controversy at this time is not with them, but with the Socialistic idealists moved by the loftiest conception of the welfare of mankind and the most earnest desire to promote it. And now let us introduce somewhat of humanitarianism, which, while it has no place in economic theory, is that which most ennobles and beautifies human character. And here let me register my last attack upon Socialistic controversy, which is, that fundamentally it tends to degrade human character by adopting for, and applying to the manual workers of the world a contemptuous epithet. When Marx, if it was he, I am not sure, shouted: "Proletariat of all nations, unite" he said a very wicked thing. It is not my conception of the manual worker that he is a mere "child getter," but rather that he is as such, morally and socially the equal of any of us, from whose ranks there are continually emerging the leaders of thought, of discovery, of direction and of accumulation to whose abilities and activities all human progress is due, and I cannot hear without indignation suggestions from his own would-be leaders which impair his self-respect. I wish, for a concrete example, that the workingman should pay his poll tax and contribute to his occupational insurance with the rest of us, not to relieve Capital of a burden, but that the character of the working man himself may be strengthened by a conscious contribution to the upkeep of Society.

Our emotions are stronger than our reasoning powers, and as a matter of fact, collective human action is and during any period which we need consider will be controlled by humanitarian instincts and not by the rigidity of economic theory. Individually, we do and always shall, seek each his own particular interest. Collectively, we invariably consider the welfare of all. This has been particularly impressed on me during the last few years, during which I have presided over the deliberations of a large body of good citizens, probably about equally divided between the accumulating and non-accumulating classes. Whatever the individual practices and tendencies of the respective members, whenever after discussion the collective opinion is expressed on any social topic the vote is invariably substantially unanimous for that policy which those present believe will make for the general good. It is not true that the rich desire to oppress the poor. It is not true that there is any real conflict of interest between classes. It is true that there is a general desire for the general welfare. And it is also true that the general welfare will be surest and soonest attained by cooperation, and not conflict between classes, under the direction of those proved to be strongest and wisest.

I have said, and I am sure you must agree, that man economically differs from other animals mainly in his greater ability to evade the operation of Nature's own laws and to make use of the material resources and forces of Nature to assist him in so doing. And he does it mainly by collective action which is displayed most effectively and beneficently in those great economic organizations which we hate and stigmatize as "trusts" and which every one of us longs to get into as our best assurance of economic stability.

The problem is how to so regulate these economic regulators of Nature, that each shall get from their beneficent operation, not that which is his ethical due, for that we can never determine, nor would it be for the general welfare that each should receive his due, but that which each can receive without injury to Society.

It is certain that each will get less as the ages go by unless by our human ingenuity we can make production keep pace with population. At present, production greatly varies in different parts of the world, and the condition in each country is indicated by the amount of leisure possible to the average man. As population increases, leisure must decrease. If we work in a crowded community but eight hours per day, some will die among the weaker who would have lived if all had worked nine hours. The best index of the economic condition of any country is the amount of leisure which can be enjoyed by the average man without noticeable increase of mortality among the least efficient. The mortality tables have not yet been studied in their relations to this subject, but in time they will be. In Australia, mostly unsettled, the eight hour day is easy. If enforced in China the mortality would be awful. But then China has great but untouched natural resources to be developed by machinery devised elsewhere, and whose development will decrease mortality, while at the same time, at least for a long period, permitting more leisure. These conditions tend to equalize themselves throughout the world and in time the contest between humanitarian instincts and economic pressure will reach a world-wide equilibrium through the operation of natural law. What will happen then I do not know. Neither can any of us know.

What we do know is that in each generation the aggregate of human happiness will be in a direct ratio with production per capita, up to the limit of the ability of the earth to produce food. We also know that the rate of production per capita will increase or decrease in a direct ratio with the amount of human energy devoted to production and not wasted in conflict, whether individual, class or international.

Each generation must work out its own problems in its own way. As population grows denser, individual freedom must more and more give way to collective restraint and direction. We in the cities have less freedom than those of the country, and the greater the city the more the individual impulse must be subordinated to collective control.

But we must never attempt to supplant individual selfishness, inspiring individual initiative and energy by any form of community ownership or direction which destroys or lessens opportunity for the more competent and especially the economically exceptional man. You would create thereby a machine operated by machinists for the accomplishment of machine purposes which are the purposes, good or bad as the case may be, of the individual operators who have never been and are not likely to be the economically competent.

For our generation the problem is, while not restricting either the opportunity or the reward of the economically competent, to compel the predatory and extortionate among them to behave decently, so that others of their class may do so without ruin--to which end, in my judgment, jail sentences and not fines will be most effective.

And likewise, to compel the ill-disposed and violent among the economically ineffective, to obey the laws or suffer the consequences.

To bother our heads much less about Social theories, whose premises it is impossible to establish, and much more about the practical relief of the unfortunate by both individual and collective action and suppression of parasitism among both rich and poor.

To encourage and promote the organization of interests, not for contention, but for cooperation.

To fully recognize, that only by personal exertion according to his ability does any one earn the right to live, but that the reward of exertion will be and should be apportioned, not in the ratio of energy displayed, but in that of its effectiveness and usefulness to Society.

To learn to differentiate between that reasonable discontent which is the mainspring of human progress, and that unreasonable discontent which is the destruction of Society.

And finally, each of us according to his ability and opportunity, to practice and inculcate respect for the law, the maintenance of order, regard for the rights of others, admiration for the successful, sympathy with the unfortunate, charity for all, hope for humanity, joy in the simple life and contentment therewith.

A CRITIQUE OF SOCIALISM

To the Ruskin Club

When your Mr. Bamford wrote me that the Ruskin Club was out hunting trouble, and that if I would come over here the bad men of the club would "do me up," I confess my first impulse was to excuse myself from the proffered hospitality. In the first place, as I have never posed as a social champion I had no reputation at stake and I was horribly afraid. Secondly, while my reading of Socialist and Anti-Socialist literature is the reverse of extensive, I am very sure that nothing can be said for or against Socialism which has not already been said many times, and so well said that a fair collection of Anti-Socialist literature would make a punching-bag solid enough to absorb the force of the most energetic of pugilists. Finally, the inutility of such a sally presented itself forcibly, since there is, so far as I know, no record of the reformation of a Socialist after the habit is once firmly established. But while at first these considerations were all against my putting on my armor, in the end the instinct of eating and fighting, which is as forceful in the modern savage, under the veneer of civilization, as in our unpolished progenitors, overcame all considerations of prudence, and here I am to do battle according to my ability. I promise to strike no foul blows and not to dodge the most portentous of whacks, but to ride straight at you and hit as hard as I can.

A Critique of Socialism

While it is doubtless true that no one can live in the world without in some degree modifying his environment, it is also true that the influence of a single person is seldom appreciable or his opinion upon Social questions of sufficient importance to excite curiosity, but I confess that when I listen to an address intended to be thoughtful, I enjoy it more or at any rate endure it better, if I have some knowledge of the mental attitude of the speaker toward his general subject. Thinking that possibly those who hear me this evening may have the same feeling, I begin by saying that I earnestly favor a just distribution of comfort. I suppose that if I should analyze the mental processes leading to that wish, I should find toward the bottom a conviction that if each had his due I should be better off. The objection to the Socialistic program is that it would prevent a just distribution of comfort.

Some years ago in a book of which I was guilty, I wrote the following: "There is implied in all Socialistic writing the doctrine that organized man can override, and as applied to himself, repeal the fundamental law of Nature, that no species can endure except by the production of more individuals than can be supported, of whom the weakest must die, with the corollary of misery before death. Competitive Society tends to the death of the weakest, Socialistic Society would tend to the preservation of the weak. There can be no question of the grandeur of this conception. To no man is given nobler aspirations than to him who conceives of a just distribution of comfort in an existence not idle, but without struggle. It would be a Nirvana glorious only in the absence of sorrow, but still perhaps a happy ending for our race. It may, after all, be our destiny. Nor can any right-minded man forbear his tribute to the good which Socialistic agitation has done. No man can tell how much misery it has prevented, or how much it will prevent. So, also, while we may regret the emotionalism which renders even so keen an intellect as that of Karl Marx an unsafe guide, we must, when we read his description of conditions for which he sought remedy, confess that he had been less a man had he been less emotional. The man whom daily contact with remediable misery will not render incompetent to always write logically, I would not wish to know. But it is the mission of such men to arouse action and not to finally determine its scope. The advocate may not be the judge. My animus is that I heartily desire most if not all the ends proposed by abstract Socialism, which I understand to be a perfectly just distribution of comfort. If, therefore, I am a critic of Socialism, I am a friendly critic, my objections to its progress resting mainly on a conviction that it would not remove, but would intensify, the evils which it is intended to mitigate." That is quite sufficient in regard to the personal equation.

Karl Marx was, of course, not the inventor of Socialism, nor was he, so far as I know, the originator of any of its fundamental doctrines,--the doctrine, for example, that all value is derived from Labor was part of mediaeval clericism,--but be first reduced it to coherent form and published it as a complete and definite system, and upon the issues, substantially as he formulated and left them, must Socialism stand or fall.

I must assume the members of the Ruskin Club to be familiar with the Marxian fundamental propositions, which I do not state because I shall confine my attack to the three derived propositions about which discussion mainly centers. We certainly do not want an exercise in serious dialectics after dinner, but I will say in passing that I do not think that any of his fundamental propositions are true, or that his theory of value has a single sound leg to stand on, and as for what he calls "surplus value," I doubt whether there be such a thing. At any rate he has not proved it, nor can it be proved, without taking into consideration the enormous number of industrial failures, as well as the more limited number of industrial successes--and there are no data for that purpose. I may also mention as what seems to me a fatal flaw in Socialistic philosophy, its concentration upon the conditions of Industrial Society, without adequate conception of a provision for the requirements of agriculture. Industrialism and commercialism are doubtless conveniences essential to our present civilization; but if every factory and all commerce were blotted from the earth the world would go right along, and when the necessary millions had perished in the adjustment, those remaining would be as happy as ever. Mankind adjusts itself to new environments very readily. We here in cities talking wisely on these things are wholly unnecessary. The farmer is essential, because without him we should starve. Nobody else is essential. We must not get the big-head. Economical farming on Socialistic methods is impossible, and any successful system of Social betterment must be based on the requirements of economical farming. Finally, to conclude this preliminary reconnaissance, the attitude of Socialism to religion is wholly unjustifiable. I am profoundly convinced that the groveling heathen, who in sincerity bows down to a "bloomin' idol made of mud," as Kipling puts it, has in him the propagation of a nobler and happier posterity than the most cultured cosmopolitan who is destitute of reverence. The Church and the Synagogue are the only existing institutions of modern Society which are engaged in the work of upbuilding and strengthening that rugged personal character which is the only sure foundation of any worthy civilization.

I do not discuss the fundamental Marxian propositions for two reasons. In the first place, it would be laborious beyond measure for me, and dreary beyond measure for you. For example, the bottom stone in the foundation of the sub-basement of the Marxian edifice is the proposition that the equation

Now, a discussion whether there is between these two equations a difference which it is Socially necessary to take account of, is a thing to be put into books where it can be skipped, and not imposed in cold blood even on intellectual enemies. Personally I do not believe there is, for I do not think that Social phenomena can be dealt with by the rigorous methods of mathematics. One can never be sure that the unknown quantities are all accounted for. But whether this or similar propositions are essential to the discussion of the theory of surplus value or not, I do not describe them because they are of no particular importance.

Socialism is not based upon the Marxian theory of value, but the Marxian theory of value was evolved in an endeavor to fix a scientific basis for a popular movement already fully under way. Socialism is not based on reason, but emotion; not on reflection, but desire; it is not scientific, but popular. If every Socialist on earth should concede that the Marxian theory of surplus value had been knocked into smithereens, it would have no more effect on the progress of Socialism than the gentle zephyr of a June day on the hide of a rhinoceros. Socialism must be attacked in the derived propositions about which popular discussion centers, and the assault must be, not to prove that the doctrines are scientifically unsound, but that they tend to the impoverishment and debasement of the masses. These propositions are three, and I lay down as my thesis--for I abhor defensive warfare--that

Rent is right, Interest is right, Profits are right,

and that they are all three ethically and economically justified, and are in fact essential to the happiness and progress of the race, and more especially to those who labor with their hands.

Now, first, rent: I confess that I have no patience with any one who claims, as an inherent right, the exclusive ownership of any part of the earth. He might as well claim ownership in a section of air. In this I am very certain that I have the hearty concurrence of every member of this Club. I am so sure of this, in fact, that I am going to make that assumption, in which we all agree, the starting point of a little dialogue, in which, after the manner of Plato, I will put Socrates at one end of the discussion, and some of his friends, whom we will suppose to be Phaedo, and Crito, and Simmias, and the rest at the other, and we will let Socrates and Phaedo carry on the conversation, which might run as follows:

SOCRATES--We are agreed, then, that no man has any right inherent in himself to the ownership of land.

PHAEDO--Certainly, we agree to that. Such a thing is absurd, for the earth is a gift to the human race, and not to particular men.

SOCRATES--I am glad that you think so, and am sure we shall continue to agree. And if no one man has any right to exclusive ownership of land, neither have any two men, since it is plain that neither could convey to himself and another any right which he did not possess, nor could two men together by any means get lawful title to what neither was entitled to hold.

PHAEDO--You are doubtless right, Socrates. I do not think any man could dispute that.

SOCRATES--And if neither one man nor two men can acquire lawful title to land, neither for the same reason could any number, no matter how great, acquire lawful title.

PHAEDO--That certainly follows from what we have already agreed to.

SOCRATES--And it makes no difference how small or how great a portion of land may be. No man and no number of men can acquire lawful ownership of it.

PHAEDO--That is also so plainly true that it seems hardly worth while to say it. It certainly makes no difference whether the land be a square furlong or a continent.

SOCRATES--As you say, Phaedo, that is very evident. The earth belongs to mankind, and all men are by nature sharers in its benefits.

PHAEDO--I trust that you will understand that I agree with you in that, and so make an end of it.

SOCRATES--It is perhaps best that we be very sure that we agree as we go on, so that if we should at any time disagree, we do not need to go far back to find where our difference began. The earth is the property of men in common, and each has an undivided share in its possession.

PHAEDO--That is another thing too plain to be disputed.

SOCRATES--And when men hold property in common, each has as much right to all parts of it as another.

PHAEDO--To be sure. I do not see why we need waste time in mentioning things so plain and so trivial.

SOCRATES--And when men own property they may do with it as they please, and property which men own jointly they may visit and remain upon, the one as much as the other.

PHAEDO--Unquestionably that is so, and we should do better to go to sleep in the shade somewhere, than to spend time in repeating things so simple.

SOCRATES--Be patient, Phaedo, and in time we may find somewhat wherein we do not so perfectly agree. But, whatever property men have the right to visit and remain upon, they are always free to use in common with their fellow owners.

PHAEDO--Certainly. Will you never, O Socrates, have done with this?

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