Almost the only persons who may be said to comprehend even approximately the significance, principles, and purposes of Socialism are the chief leaders of the extreme wings of the Socialistic forces, and perhaps a few of the money kings themselves. It is a subject of which it has lately become quite the fashion for preacher, professor, and penny-a-liner to treat, and, for the most part, woeful work they have made with it, exciting the derision and pity of those competent to judge. That those prominent in the intermediate Socialistic divisions do not fully understand what they are about is evident from the positions they occupy.
American journalist and anarchist (1854-1939)
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It has ever been the tendency of power to add to itself, to enlarge its sphere, to encroach beyond the limits set for it; and where the habit of resisting such encroachment is not fostered, and the individual is not taught to be jealous of his rights, individuality gradually disappears and the government or State becomes the all-in-all.
From Smith's principle that labor is the true measure of price—or, as Warren phrased it, that cost is the proper limit of price—these three men [i.e., Josiah Warren, Pierre Proudhon, and Karl Marx] made the following deductions: that the natural wage of labor is its product; that this wage, or product, is the only just source of income (leaving out, of course, gift, inheritance, etc.); that all who derive income from any other source abstract it directly or indirectly from the natural and just wage of labor; that this abstracting process generally takes one of three forms,—interest, rent, and profit; that these three constitute the trinity of usury, and are simply different methods of levying tribute for the use of capital; that, capital being simply stored-up labor which has already received its pay in full, its use ought to be gratuitous, on the principle that labor is the only basis of price; that the lender of capital is entitled to its return intact, and nothing more; that the only reason why the banker, the stockholder, the landlord, the manufacturer, and the merchant are able to exact usury from labor lies in the fact that they are backed by legal privilege.
This brings us to Anarchism, which may be described as the doctrine that all the affairs of men should be managed by individuals or voluntary associations, and that the State should be abolished. When Warren and Proudhon, in prosecuting their search for justice to labor, came face to face with the obstacle of class monopolies, they saw that these monopolies rested upon Authority, and concluded that the thing to be done was, not to strengthen this Authority and thus make monopoly universal, but to utterly uproot Authority and give full sway to the opposite principle, Liberty, by making competition, the antithesis of monopoly, universal.
First, then, State Socialism, which may be described as the doctrine that all the affairs of men should be managed by the government, regardless of individual choice. Marx, its founder, concluded that the only way to abolish the class monopolies was to centralize and consolidate all industrial and commercial interests, all productive and distributive agencies, in one vast monopoly in the hands of the State. The government must become banker, manufacturer, farmer, carrier, and merchant, and in these capacities must suffer no competition. Land, tools, and all instruments of production must be wrested from individual hands, and made the property of the collectivity. To the individual can belong only the products to be consumed, not the means of producing them. A man may own his clothes and his food, but not the sewing-machine which makes his shirts or the spade which digs his potatoes. Product and capital are essentially different things; the former belongs to individuals, the latter to society. Society must seize the capital which belongs to it, by the ballot if it can, by revolution if it must. Once in possession of it, it must administer it on the majority principle, though its organ, the State, utilize it in production and distribution, fix all prices by the amount of labor involved, and employ the whole people in its workshops, farms, stores, etc. The nation must be transformed into a vast bureaucracy, and every individual into a State official. Everything must be done on the cost principle, the people having no motive to make a profit out of themselves. Individuals not being allowed to own capital, no one can employ another, or even himself. Every man will be a wage-receiver, and the State the only wage-payer. He who will not work for the State must starve, or, more likely, go to prison. All freedom of trade must disappear. Competition must be utterly wiped out. All industrial and commercial activity must be centered in one vast, enormous, all-inclusive monopoly. The remedy for monopolies is monopoly.
Such is the economic programme of State Socialism as adopted from Karl Marx.
But this is not to say that the society which inflicts capital punishment commits murder. Murder is an offensive act. The term cannot be applied legitimately to any defensive act. And capital punishment, however ineffective it may be and through whatever ignorance it may be resorted to, is a strictly defensive act,—at least in theory.
This distinction between invasion and resistance, between government and defence, is vital. Without it there can be no valid philosophy of politics. Upon this distinction and the other considerations just outlined, the Anarchists frame the desired definitions. This, then, is the Anarchistic definition of government: the subjection of the non-invasive individual to an external will. And this is the Anarchistic definition of the State: the embodiment of the principle of invasion in an individual, or a band of individuals, assuming to act as representatives or masters of the entire people within a given area.
"There would be but one article in the constitution of a State Socialistic country: "The right of the majority is absolute." The claim of the State Socialists, however, that this right would not be exercised in matters pertaining to the individual in the more intimate and private relations of his life is not borne out by the history of governments. It has ever been the tendency of power to add to itself, to enlarge its sphere, to encroach beyond the limits set for it; and where the habit of resisting such encroachment is not fostered, and the individual is not taught to be jealous of his rights, individuality gradually disappears and the government or State becomes the all-in-all. Control naturally accompanies responsibility. Under the system of State Socialism, therefore, which holds the community responsible for the health, wealth, and wisdom of the individual, it is evident that the community, through its majority expression, will insist more and more in prescribing the conditions of health, wealth, and wisdom, thus impairing and finally destroying individual independence and with it all sense of individual responsibility."
It was at this point — the necessity of striking down monopoly — that came the parting of their ways. Here the road forked. They found that they must turn either to the right or to the left, — follow either the path of Authority or the path of Liberty. Marx went one way; Warren and Proudhon the other. Thus were born State Socialism and Anarchism.
"But," it will be asked of the Anarchists at this point in the argument, "what shall be done with those individuals who undoubtedly will persist in violating the social law by invading their neighbors?" The Anarchists answer that the abolition of the State will leave in existence a defensive association, resting no longer on a compulsory but on a voluntary basis, which will restrain invaders by any means that may prove necessary.
The economic principles of Modern Socialism are a logical deduction from the principle laid down by Adam Smith in the early chapters of his “Wealth of Nations,” — namely, that labor is the true measure of price. But Adam Smith, after stating this principle most clearly and concisely, immediately abandoned all further consideration of it to devote himself to showing what actually does measure price, and how, therefore, wealth is at present distributed. Since his day nearly all the political economists have followed his example by confining their function to the description of society as it is, in its industrial and commercial phases. Socialism, on the contrary, extends its function to the description of society as it should be, and the discovery of the means of making it what it should be.
Anarchists, whose mission in the world is the abolition of aggression and all the evils that result therefrom, perceived that, to be understood, they must attach some definite and avowed significance to the terms which they are obliged to employ, and especially to the words "State" and "government." Seeking, then, the elements common to all the institutions to which the name "State" has been applied, they have found them two in number: first, aggression; second, the assumption of sole authority over a given area and all within it, exercised generally for the double purpose of more complete oppression of its subjects and extension of its boundaries.