Frederick Engels
Socialism: Utopian and Scientific

III  [Historical Materialism] (continued)




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 costs 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 it 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 mediaeval society, especially in the earlier centuries, production
was essentially directed toward 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 the 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 lords, only then did it also produce
commodities. This surplus, thrown into socialized exchange and offered
for sale, became commodities.

The artisan in the towns, it is true, had from the first to produce
for exchange. But they, also, themselves supplied the greatest part of
their 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 mark 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 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 17th and
18th 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 planets, by collision
with the centre. 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 [3], 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 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 they 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, English
edition, p. 406)

Thus it comes about that the overwork 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 the 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's Capital, p.
661)

And to expect any other division of the products from the capitalist
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 similarly 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 quantative, 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
cannot 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 10 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
"crise plethorique", 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.

(continued)

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