Equality by Edward Bellamy (popular romance novels TXT) 📕

to the capitalists, but were unable to buy back and consume but a small part of the result of that labor or produce in the market, the rest remaining in the hands of the capitalists as profits. Now, the capitalists, being a very small body numerically, could consume upon their necessities but a petty part of these accumulated profits, and yet, if they did not get rid of them somehow, production would stop, for the capitalists absolutely controlled the initiative in production, and would have no motive to increase accumulations they could not dispose of. In proportion, moreover, as the capitalists from lack of use for more profits should slacken production, the mass of the people, finding none to hire them, or buy their produce to sell again, would lose what little consuming power they had before, and a still larger accumulation of products be left on the capitalists' hands. The question then is, How did the capitalists, after consuming all they could of their profits upon their own necessities, dispose of the surplus, so as to make room for more production?"

"Of course," said the girl Emily, "if the surplus products were to be so expended as to relieve the glut, the first point was that they must be expended in such ways that there should be no return, for them. They must be absolutely wasted--like water poured into the sea. This was accomplished by the use of the surplus products in the support of bodies of workers employed in unproductive kinds of labor. This waste labor was of two sorts--the first was that employed in wasteful industrial and commercial competition; the second was that employed in the means and services of luxury."

"Tell us about the wasteful expenditure of labor in competition."

"That was through the undertaking of industrial and commercial enterprises which were not called for by any increase in consumption, their object being merely the displacement of the enterprises of one capitalist by those of another."

"And was this a very large cause of waste?"

"Its magnitude may be inferred from the saying current at the time that ninety-five per cent of industrial and commercial enterprises failed, which merely meant that in this proportion of instances capitalists wasted their investments in trying to fill a demand which either did not exist or was supplied already. If that estimate were even a remote suggestion of the truth, it would serve to give an idea of the enormous amounts of accumulated profits which were absolutely wasted in competitive expenditure. And it must be remembered also that when a capitalist succeeded in displacing another and getting away his business the total waste of capital was just as great as if he failed, only in the one case it was the capital of the previous investor that was destroyed instead of the capital of the newcomer. In every country which had attained any degree of economic development there were many times more business enterprises in every line than there was business for, and many times as much capital already invested as there was a return for. The only way in which new capital could be put into business was by forcing out and destroying old capital already invested. The ever-mounting aggregation of profits seeking part of a market that was prevented from increasing by the effect of those very profits, created a pressure of competition among capitalists which, by all accounts that come down to us, must have been like a conflagration in its consuming effects upon capital.

"Now tell us something about the other great waste of profits by which the pressure in the cistern was sufficiently relieved to permit production to go on--that is to say, the expenditure of profits for the employment of labor in the service of luxury. What was luxury?"

"The term luxury, in referring to the state of society before the Revolution, meant the lavish expenditure of wealth by the rich to gratify a refined sensualism, while the masses of the people were suffering lack of the primary necessities."

"What were some of the modes of luxurious expenditure indulged in by the capitalists?"

"They were unlimited in variety, as, for example, the construction of costly palaces for residence and their decoration in royal style, the support of great retinues of servants, costly supplies for the table, rich equipages, pleasure ships, and all manner of boundless expenditure in fine raiment and precious stones. Ingenuity was exhausted in contriving devices by which the rich might waste the abundance the people were dying for. A vast army of laborers was constantly engaged in manufacturing an infinite variety of articles and appliances of elegance and ostentation which mocked the unsatisfied primary necessities of those who toiled to produce them."

"What have you to say of the moral aspect of this expenditure for luxury?"

"If the entire community had arrived at that stage of economic prosperity which would enable all alike to enjoy the luxuries equally," replied the girl, "indulgence in them would have been merely a question of taste. But this waste of wealth by the rich in the presence of a vast population suffering lack of the bare necessaries of life was an illustration of inhumanity that would seem incredible on the part of civilized people were not the facts so well substantiated. Imagine a company of persons sitting down with enjoyment to a banquet, while on the floors and all about the corners of the banquet hall were groups of fellow-beings dying with want and following with hungry eyes every morsel the feasters lifted to their mouths. And yet that precisely describes the way in which the rich used to spend their profits in the great cities of America, France, England, and Germany before the Revolution, the one difference being that the needy and the hungry, instead of being in the banquet room itself, were just outside on the street."

"It was claimed, was it not, by the apologists of the luxurious expenditure of the capitalists that they thus gave employment to many who would otherwise have lacked it?"

"And why would they have lacked employment? Why were the people glad to find employment in catering to the luxurious pleasures and indulgences of the capitalists, selling themselves to the most frivolous and degrading uses? It was simply because the profit taking of these same capitalists, by reducing the consuming power of the people to a fraction of its producing power, had correspondingly limited the field of productive employment, in which under a rational system there must always have been work for every hand until all needs were satisfied, even as there is now. In excusing their luxurious expenditure on the ground you have mentioned, the capitalists pleaded the results of one wrong to justify the commission of another."

"The moralists of all ages," said the teacher, "condemned the luxury of the rich. Why did their censures effect no change?"

"Because they did not understand the economics of the subject. They failed to see that under the profit system the absolute waste of the excess of profits in unproductive expenditure was an economic necessity, if production was to proceed, as you showed in comparing it with the cistern. The waste of profits in luxury was an economic necessity, to use another figure, precisely as a running sore is a necessary vent in some cases for the impurities of a diseased body. Under our system of equal sharing, the wealth of a community is freely and equally distributed among its members as is the blood in a healthy body. But when, as under the old system, that wealth was concentrated in the hands of a portion of the community, it lost its vitalizing quality, as does the blood when congested in particular organs, and like that becomes an active poison, to be got rid of at any cost. Luxury in this way might be called an ulcer, which must be kept open if the profit system was to continue on any terms."

"You say," said the teacher, "that in order that production should go on it was absolutely necessary to get the excess of profits wasted in some sort of unproductive expenditure. But might not the profit takers have devised some way of getting rid of the surplus more intelligent than mere competition to displace one another, and more consistent with humane feeling than wasting wealth upon refinements of sensual indulgence in the presence of a needy multitude?"

"Certainly. If the capitalists had cared at all about the humane aspect of the matter, they could have taken a much less demoralizing method in getting rid of the obstructive surplus. They could have periodically made a bonfire of it as a burnt sacrifice to the god Profit, or, if they preferred, it might have been carried out in scows beyond soundings and dumped there."

"It is easy to see," said the teacher, "that from a moral point of view such a periodical bonfire or dump would have been vastly more edifying to gods and men than was the actual practice of expending it in luxuries which mocked the bitter want of the mass. But how about the economic operation of this plan?"

"It would have been as advantageous economically as morally. The process of wasting the surplus profits in competition and luxury was slow and protracted, and meanwhile productive industry languished and the workers waited in idleness and want for the surplus to be so far reduced as to make room for more production. But if the surplus at once, on being ascertained, were destroyed, productive industry would go right on."

"But how about the workmen employed by the capitalists in ministering to their luxuries? Would they not have been thrown out of work if luxury had been given up?"

"On the contrary, under the bonfire system there would have been a constant demand for them in productive employment to provide material for the blaze, and that surely would have been a far more worthy occupation than helping the capitalists to consume in folly the product of their brethren employed in productive industry. But the greatest advantage of all which would have resulted from the substitution of the bonfire for luxury remains to be mentioned. By the time the nation had made a few such annual burnt offerings to the principle of profit, perhaps even after the first one, it is likely they would begin to question, in the light of such vivid object lessons, whether the moral beauties of the profit system were sufficient compensation for so large an economic sacrifice."

CHARLES REMOVES AN APPREHENSION.

"Now, Charles," said the teacher, "you shall help us a little on a point of conscience. We have, one and another, told a very bad story about the profit system, both in its moral and its economic aspects. Now, is it not possible that we have done it injustice? Have we not painted too black a picture? From an ethical point of view we could indeed scarcely have done so, for there are no words strong enough to justly characterize the mock it made of all the humanities. But have we not possibly asserted too strongly its economic imbecility and the hopelessness of the world's outlook for material welfare so long as it should be tolerated? Can you reassure us on this point?"

"Easily," replied the lad Charles. "No more conclusive testimony to the hopelessness of the economic outlook under private capitalism could be desired than is abundantly given by the nineteenth-century economists themselves. While they seemed quite incapable of imagining anything different from private capitalism as the basis of an economic system, they cherished no illusions as to its operation. Far from trying to comfort mankind by promising that if present ills were bravely borne matters would grow better, they expressly taught that the profit system must inevitably result at some time not far ahead in the arrest of industrial progress and a stationary condition of production."

"How did they make that out?"

"They recognized, as we do, the tendency under private capitalism of rents, interest, and profits to accumulate as capital in the hands of the capitalist class, while, on the other hand, the consuming power of the masses did not increase, but either decreased or remained practically stationary. From this lack of equilibrium between production and consumption it followed that the difficulty of profitably employing capital in productive industry must increase as the accumulations of capital so disposable should grow. The home market having been first, glutted with products and afterward the foreign market, the competition of the capitalists to find productive employment for their capital would lead them, after having reduced wages to the lowest possible point, to bid for what was left of the market by reducing their own profits to the minimum point at which it was worth while to risk capital. Below this point more capital would not be invested in business. Thus the rate of wealth production would cease to advance, and become stationary."

"This, you say, is what the nineteenth-century economists themselves taught concerning the outcome of the profit system?"

"Certainly. I could, quote from their standard books any number of passages foretelling