Capitalist Exploitation

 

Without a doubt, the most misused word in politics today is the word socialism. Socialism will be a class-free, money-free society without prices or wages wherein production and distribution of wealth will be carried out for the sole purpose of satisfying people’s needs. Socialism will be an global system, of necessity knowing no national frontiers. In socialism all mankind will have free and equal access to the fruits of social production upon the principle of: from each in accordance with his mental or physical abilities; to each in accordance with his needs.

This is what socialism means. It has nothing to do with dictatorships, nationalisation, “workers’ republics” or schemes for reforming this or that feature of capitalism. Socialism will be brought about only by the democratic action of a majority of socialists — members of the working class who have learned that the problems that confront them in our present society arise inevitably out of the nature of capitalism and that socialism is the only alternative to capitalism.

The task of the World Socialist Movement, then, is not to parade, prattle and protest against this or that evil of capitalism — evils we know to be an inevitable consequence of our present system — but to advocate socialism — not just the word, but its meaning.

The Socialist Party has always said that socialism can be established only when there is a majority of conscious socialists — people who understand socialism and want it. In line with this principle, we must obviously ensure, as far as we can, that our members all understand the case for socialism. In that sense we do ‘vet’ applicants for membership, which does not mean that joining  is like being interrogated by the thought police. The Socialist Party simply tries to find out the applicant’s political ideas. If he or she disagrees with socialism, then clearly they cannot become members; if they agree they are welcomed into our ranks.

Socialists are in favour of workers grabbing whatever crumbs may fall from their masters’ tables; so we recognise that some reforms can be said to have benefitted the working class. This does not prevent us still struggling for socialism, which is the whole loaf rather than a few crumbs.

When the word “exploit” or "exploitation” is used by socialists, what is really meant ?

To exploit is to make use of, but the directors of a company formed to “ exploit ” certain oilbearing territories do not propose merely to use the land in question, nor do the shareholders of the company intend to take any part in the actual work of oil getting. In fact the mass of the shareholders will probably never even see the land from which the oil comes.

Further, the company is not formed for the pleasure of providing oil to a needy world, nor for the vindictiveness of polluting the sea and the air. It has only one purpose—to provide dividends for the holders of shares in the company. It is only because the particular oil wells appear to hold out the promise of being fruitful in this direction that they figure at all in the prospectus of the company. From the same point of view it is immaterial whether the oil be good or bad, Russian, Dutch, or American. The claims of patriotism, religion and humanity take second place before the claims of the purse.

The question that presents itself, then, is why should oil wells be instrumental in producing dividends as well as oil? This brings us to the question of the source of dividends. A glance at the published returns of companies carries the matter a little further. They show us that dividends come out of profits, past or present. But whence come profits?

As soon as the company is formed work goes rapidly ahead to get the production of oil under way, because until oil is sold no funds flow to the company, apart from loans and what the shareholders provide. When oil is sold over a definite period the difference between all the expenses of getting it and the money produced by its sale represents profit; but we still need to know from whence this profit comes—how it is possible for the production and sale of oil to be the means of also producing profit. The answer is a simple one.

In order to get oil produced, workers as well as oil wells are required. If the workers were to receive in return for their labour the equivalent in value of the oil produced, there would be nothing left for the shareholders of the company—there would be no profit from which to draw dividends. It follows, therefore, that the employees of the company cannot receive a value equivalent to the oil produced.

How are the wages of the company’s workpeople arrived at? Experience tells us. They are paid on the average what it costs them to live and bring up families, regardless of the result in the form of oil due to the application of their energies in the company’s service. This wage may differ according to place and type of worker, but it still remains what it costs the worker to live.

Whatever the wage of the worker, however, it is far below the value of what he produces, and it is owing to this fact that the investors and directors of the company expect it to prosper and anticipate dividends. It is out of the surplus labour of the oil worker, the labour above the value of his means of existence, that the profit and the dividends of the shareholders will come. An illustration will make the matter plain. If one man can lie in the sun while two others work to provide him and themselves with the food and so forth they need, then the first man is living on the surplus labour of the other two. This, on, a larger scale, is the position of the oil company. It is neither the land nor the oil that is exploited, but the worker. It is he in reality who is made use of by the company.

Exploitation, then, is squeezing from the worker surplus labour. Other things remaining the same, the more surplus labour squeezed from the worker the greater is the exploitation, regardless of the level of wages paid, and the more successful is the company in providing dividends for its shareholders.

It is, therefore, plain that exploitation is the root of all accumulations of wealth by private individuals. At one time it was the exploitation of chattel slaves, at another the exploitation of serfs. In modern times it is the exploitation of wage workers, or, more truly, wage slaves.

With this end in view the earth has been covered with manufacturing centres, and the bulk of its population reduced to beasts of burden, but without the security of livelihood of the latter.

Exploitation has brought into existence the glittering civilisations that have expressed the agony as much as the achievement of man across the centuries. The process will continue until the workers awake to the fact that it is they who produce and distribute the wealth of the world, and that they have no need to carry parasites on their backs to do so. The day the workers arrive at this knowledge exploitation will cease.