Briefly
stated, the Socialist Party proposes that workers use their huge
numbers at the polls to outlaw capitalist ownership and to make the
means of social production the property of all the people
collectively. For our fellow-workers who is troubled by the
disintegration of society and the multiple perils of armed conflict,
climate chaos and class conflict there is no higher contribution to
the cause of social sanity than a serious study of the principles of
the Socialist Party to understand the abolition of the outmoded
capitalist system and the triumph of the class-free, democratic
socialist commonwealth.
The
Socialist Party tells the story of a robbery so colossal that it
defies the imagination. Compared with it the loot taken by all the
pirates of history are a mere bagatelle. The robbery is continuous and
unremitting, wherever society is divided into classes, wherever one
class owns the means of production and distribution to which another
class, owning no tools of its own, must have access in order to live.
There is nothing illegal about this robbery. Under the capitalist
system, it is considered the normal "way of life." But it
is robbery nonetheless. For the capitalist class uses its ownership
and control of the factories and land, in the same way that a
highwayman uses his gun -- to extract a tribute from its victims. It
is an insidious form of legalised theft, this capitalist
exploitation.
Workers
labour under the illusion that the capitalist supports them, whereas
we support the capitalist. What goes on inside the workplace that
conceals the true state of affairs? What happens is simply this: In
the first few hours on the job the worker produces in the form of new
values as much as he is paid in wages for the entire working day. The
worker has little way of knowing this. When the serf of feudal times
was forced to yield part of what he produced to the feudal lord, he
knew he was being robbed. But capitalist robbery is more subtle. The
worker may perform but one minute operation in the production of a
commodity requiring thousands of operations. Nevertheless, the labour
has created new value equal to a day's wages in the first hour or two
on the job. and this new value -- together with the value added by
fellow workers -- is embodied in the finished product.
Marx
gave a name to the part of the working day in which the worker
reproduces his wages. He called it necessary labour time. During the
rest of the working day the worker produces values for which he is
not paid, or -- let us call a spade a spade -- values of which he is
robbed! This part of the working day Marx called surplus labour time.
For purposes of simplification, take the case of a worker who
sells his labour power -- to be expended in eight hours -- for the
price of $15. The first two hours of his working day are necessary
labour time. In these two hours a worker produces as much as the boss
pays for eight hours of labour. During the remaining six hours --
surplus labour time -- a workers produces three times as much, or
$45 worth of new values. In the science of political economy we call
the wealth that the worker produces, but of which he is robbed,
surplus value.
What
in the degree of robbery, or exploitation? It varies as conditions
vary in the different countries. In a country where more advanced
techniques and methods of production are applied (such as the United
States), the degree of exploitation is greater than it is in less
advanced countries. At first blush this may seem contradictory. Why,
you may ask, should workers who are more productive receive less
proportionately of what they produce than workers who are not so
productive?
The
answer is simply that wages are not determined by what the worker
produces. Leaving aside their temporary rise and fall due to
fluctuations of supply and demand in the labour market, wages are
determined by what it costs the worker to live and raise a new crop
of wage slaves to take his place when he dies or is thrown on the
scrap heap.
Everyone
is familiar with the expression a "living wage." Our
grandfathers got a "living wage"; our fathers got a "living
wage": and. normally, we get a "living wage." Thus, in
terms of food, clothing, shelter, etc., we receive substantially what
our grandfathers did. Yet we produce vastly more than our
grandfathers and considerably more than our fathers. Why, then,
haven't we advanced beyond the "living wage" concept? The
answer is that we cannot advance beyond this concept, no matter how
much our productivity increases, as long as capitalism lasts. And the
reason is that, under capitalism, labour power is a commodity, an
article of merchandise, whose price is governed by the same economic
laws that govern the price of any other commodity.
COMMODITY
STATUS OF LABOUR
Price
may fluctuate according to the supply of a commodity and the demand
for it in the market. Just as a pendulum swings back and forth, but
is always drawn toward the centre by gravitation, price may go up or
down -- but always it oscillates around its value in accord with the
economic law of value.
In
other words, price, in the long run, coincides with value. And the
value of any commodity is determined by the amount of socially
necessary labour time required to produce it. In the case of the
commodity labour power this means that its value is determined by the
amount of socially necessary labour time required to produce the food,
clothing, shelter, etc., needed to keep the worker in working
condition. He gets a 'living wage."
THE
TREND: INTENSIFIED EXPLOITATION
But,
note this: The more highly developed a nation is industrially, the
less labour time is required to produce the workers' necessities.
Hence, instead of the workers' share of their product increasing
proportionately as their productivity rises, it is the other way
around. As new methods and techniques -- such as automation -- are
introduced, the articles workers consume are cheapened and wages fall
accordingly. Thus the workers' relative wages (what they receive in
relation to what they produce) tend to fall as productivity rises. In
other words, as labour productivity rises, the necessary labour time
grows shorter, thus lengthening that part of the working day when the
worker produces surplus value.
HOW
THE CAPITALISTS DIVIDE THE LOOT
For
purposes of simplification we have used a single worker as an example
but exploitation is not the act of any individual capitalist, or set
of capitalists, perpetrated upon any individual workingman or set of
workingmen. Exploitation is a class act -- the act of the whole
capitalist class-perpetrated upon a class -- the whole working class.
Apologists
for capitalism sometimes try to refute the Socialist Party's charges
of high-degree exploitation by pointing to the net profits of
corporations. But socialists have never contended that the
corporations pocket all the surplus value their workers produce. On
the contrary, socialists point out that before a capitalist can count
his net profits he must pay off the landlord, tax collector, banker,
advertising capitalist, insurance company, and all the other
parasites on parasites. By the time taxes, interest, rent, etc., are
deducted, net profits of the immediate capitalist exploiter may be
only a fraction of the surplus value of which workers are robbed. But
this in no way disputes the fact that the working class is robbed by
the capitalist class of wealth so vast that it defies measurement.
CAPITALIST
HEADACHE: DISPOSING OF THE LOOT
Now,
let us examine this thievery from another angle. We measure surplus
value in dollars. But the workers do not produce dollars, they
produce commodities -- and a commodity, Marx tells us, is an article
that will satisfy some human want and that is produced for sale.
Hence, before the capitalists can enjoy their plunder, they must
first find buyers for it. If they don't get rid of their commodity
loot, it accumulates the warehouses and production stagnates.
First
of all, it is self-evident that the workers do not consume more than
they can buy with their wages. And, as we have shown, this is just a
fraction of what they produce. What happens to the remainder of
labour's vast product?
A
part is consumed by the capitalists in prodigal living. Some
capitalists -- the plutocracy -- live in opulence surpassing that of
kings, and often maintain not one palace, but many. In every city the
capitalists form a community of super-consumers. They are the patrons
of the night clubs, the purchasers of costly luxuries, the members of
expensive clubs. Yet. despite their prodigality, the capitalists can
use up in personal consumption only a fraction of the immense wealth
created by labour and appropriated by their exploiters.
Another
part of this wealth -- a much larger part -- is used up in running a
huge, bureaucratic, capitalist political State.
Still
another part of labour's surplus product goes into expansion of
industry. But while this tends temporarily to relieve the glut, its
ultimate effect is to increase the capacity to produce commodities,
hence to produce surpluses.
CAPITALISM
NEEDS WASTE
Waste
is another outlet for the wealth labour produces but cannot buy back.
Some of the waste is incidental to the operation of capitalism. Take
real estate transactions, for example. From the standpoint of economy
these are pure waste. So is insurance. And advertising. None of these
activities creates a penny's worth of value. Then there is the wanton
destruction of surplus crops, and the fantastic waste involved in
building hydrogen bombs and other weapons. And the waste of economic
anarchy and duplication of effort.
Indeed,
capitalism thrives best when waste is greatest. Floods, tornadoes,
droughts, hurricanes and other natural disasters may ruin individual
capitalists, but they are a veritable tonic to the capitalist system,
for they help to use up surpluses.
COMPETITION
FOR WORLD TRADE
However,
such is the tremendous productivity of the modern working class that,
despite prodigious consumption and waste, surpluses tend to
accumulate, glutting the home market. The only outlet for this
surplus is -- the world market.
Foreign
markets are to capitalism what a safety valve is to a steam boiler.
Continue to pump steam into a steam boiler that has no safety valve
to release the excess pressure and, sooner or later, something will
break. Similarly with capitalist production. Under a system of
production for sale and profit, the foreign markets must drain off
the surplus or it will pile up, cause economic stagnation at home,
and, ultimately result in capitalist collapse.
All
industrial countries are competing for a world market that, instead
of growing larger, tends to shrink as economically backward countries
industrialise and establish their own systems of exploitation.
Inevitably the rivals in this economic war encroach upon each other's
markets and sources of raw materials, creating international friction
and hatred. For a time the weapons of trade -- tariffs, barter deals,
import quotas, etc. -- are invoked. But ultimately such weapons are
inadequate. The struggle that begins in commerce ends in -- WAR!
SOCIALIST
SANITY
Capitalist
rulers have no ears for the voice of Socialist sanity. For Socialism
-- not the phony "Socialism" of Soviet Russia, which is
really a system of bureaucratic despotism, but real Socialism --
would not only put an end to the periodic wars for capitalist
survival -- it would also put an end to capitalist robbery of the
working class. By raising the worker out of his commodity status to
that of a free human being with a voice and vote in the
administration of industry, by guaranteeing to every producer the
full social value of the product, in abort, by replacing capitalist
anarchy and exploitation with Socialist cooperation and harmony, the
world could be made into a veritable paradise of peace and plenty.
But
capitalist rulers, blinded by their class and material interests,
reject this. Whatever betides, they choose capitalism with its
inevitable struggle for world trade and raw material sources, with
its inevitable war. Not even the hydrogen bomb with its threat of
human annihilation can prevent this ultimate outcome if capitalism is
allowed to remain the ruling principle of society.
What
the capitalist rulers and bureaucrats are incapable of learning, the
toilers of the world must learn.
There
can be no peace without Socialism
The
capitalist system is the first in which a surplus of useful things is
looked upon, not as a blessing, but as a curse. Below are depicted
the various methods whereby the capitalists dispose of the fantastic
volume of commodities the modern wage-slave class produces. It is
impossible, of course, to determine accurately the proportion of
labour's product used up in waste, or through expensive living by the
capitalists, or in other ways, and the drawing is intended to convey
this only in general terms. It should also be noted that the workers
are many, the capitalists few,, and, though the working class may
consume more in living, its per capital consumption is but a fraction
of that of its exploiters.
The
capitalist class, as a class, robs the working class, as a class. The
individual capitalist exploiter does not pocket the whole loot taken
from the workers. Out of the wealth the workers produce come rent,
interest, fees for insurance, advertising, etc., taxes and the
"pay-off" for corrupt politicians and other hangers-on of
capitalism who in one way or another serve capitalist interests. When
workers read of the net profits of corporations, small or large, they
should always bear in mind that these represent only a fraction of
the total plunder. The "pie" above is suggestive and does
not pretend to convey the real proportions in which labour's product
is divided.