Equality by Edward Bellamy (good books to read in english .txt) 📕

goods, so likewise did the glut in the labor market stimulate an equally desperate competition among the workers to sell their labor. The capitalists who could not find buyers for their goods lost their money indeed, but those who had nothing to sell but their strength and skill, and could find none to buy, must perish. The capitalist, unless his goods were perishable, could wait for a market, but the workingman must find a buyer for his labor at once or die. And in respect to this inability to wait for a market, the farmer, while technically a capitalist, was little better off than the wage-earner, being, on account of the smallness of his capital, almost as unable to withhold his product as the workingman his labor. The pressing necessity of the wage-earner to sell his labor at once on any terms and of the small capitalist to dispose of his product was the means by which the great capitalists were able steadily to force down the rate of wages and the prices paid for their product to the first producers."

"And was it only among the wage-earners and the small producers that this glut of men existed?"

"On the contrary, every trade, every occupation, every art, and every profession, including the most learned ones, was similarly overcrowded, and those in the ranks of each regarded every fresh recruit with jealous eyes, seeing in him one more rival in the struggle for life, making it just so much more difficult than it had been before. It would seem that in those days no man could have had any satisfaction in his labor, however self-denying and arduous, for he must always have been haunted by the feeling that it would have been kinder to have stood aside and let another do the work and take the pay, seeing that there was not work and pay for all."

"Tell us, Robert, did not our ancestors recognize the facts of the situation you have described? Did they not see that this glut of men indicated something out of order in the social arrangements?"

"Certainly. They professed to be much distressed over it. A large literature was devoted to discussing why there was not enough work to go around in a world in which so much more work evidently needed to be done as indicated by its general poverty. The Congresses and Legislatures were constantly appointing commissions of learned men to investigate and report on the subject."

"And did these learned men ascribe it to its obvious cause as the necessary effect of the profit system to maintain and constantly increase a gap between the consuming and producing power of the community?"

"Dear me, no! To have criticised the profit system would have been flat blasphemy. The learned men called it a problem--the problem of the unemployed--and gave it up as a conundrum. It was a favorite way our ancestors had of dodging questions which they could not answer without attacking vested interests to call them problems and give them up as insolvable mysteries of Divine Providence."

"There was one philosopher, Robert--an Englishman--who went to the bottom of this difficulty of the glut of men resulting from the profit system. He stated the only way possible to avoid the glut, provided the profit system was retained. Do you remember his name?"

"You mean Malthus, I suppose."

"Yes. What was his plan?"

"He advised poor people, as the only way to avoid starvation, not to get born--that is, I mean he advised poor people not to have children. This old fellow, as you say, was the only one of the lot who went to the root of the profit system, and saw that there was not room for it and for mankind on the earth. Regarding the profit system as a God-ordained necessity, there could be no doubt in his mind that it was mankind which must, under the circumstances, get off the earth. People called Malthus a cold-blooded philosopher. Perhaps he was, but certainly it was only common humanity that, so long as the profit system lasted, a red flag should be hung out on the planet, warning souls not to land except at their own risk."

EMILY SHOWS THE NECESSITY OF WASTE PIPES.

"I quite agree with you, Robert," said the teacher, "and now, Emily, we will ask you to take us in charge as we pursue a little further this interesting, if not very edifying theme. The economic system of production and distribution by which a nation lives may fitly be compared to a cistern with a supply pipe, representing production, by which water is pumped in; and an escape pipe, representing consumption, by which the product is disposed of. When the cistern is scientifically constructed the supply pipe and escape pipe correspond in capacity, so that the water may be drawn off as fast as supplied, and none be wasted by overflow. Under the profit system of our ancestors, however, the arrangement was different. Instead of corresponding in capacity with the supply pipe representing production, the outlet representing consumption was half or two thirds shut off by the water-gate of profits, so that it was not able to carry off more than, say, a half or a third of the supply that was pumped into the cistern through the feed pipe of production. Now, Emily, what would be the natural effect of such a lack of correspondence between the inlet and the outlet capacity of the cistern?"

"Obviously," replied the girl who answered to the name of Emily, "the effect would be to clog the cistern, and compel the pumps to slow down to half or one third of their capacity--namely, to the capacity of the escape pipe."

"But," said the teacher, "suppose that in the case of the cistern used by our ancestors the effect of slowing down the pump of production was to diminish still further the capacity of the escape pipe of consumption, already much too small, by depriving the working masses of even the small purchasing power they had before possessed in the form of wages for labor or prices for produce."

"Why, in that case," replied the girl, "it is evident that since slowing down production only checked instead of hastening relief by consumption, there would be no way to avoid a stoppage of the whole service except to relieve the pressure in the cistern by opening waste pipes."

"Precisely so. Well, now, we are in a position to appreciate how necessary a part the waste pipes played in the economic system of our forefathers. We have seen that under that system the bulk of the people sold their labor or produce 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