Understand Socialism

 

Why is there hunger? It’s nothing to do with a lack of food.The fact there’s enough food to feed everyone has been acknowledged by the numerous  institutions and NGOs such as the UN’s Food and Agriculture Organisation (FAO) and Oxfam

 

The difference between "what is possible and what is possible in capitalism" has failed to imprint itself upon the experts who assume  food is both produced to sell and to satisfy hunger.

 

Capital must always have wage-labour and it has always been ruthless in the methods by which it has built up its armies of wage workers.

 

We know that the future belongs to us, the workers. We know socialism is possible. We know that only the working people can bring socialism about. We need to build a society where we own the factories, the lands, —a society where we are guaranteed good housing, decent education and full healthcare. A world where there will be no borders.

 

Labour power is a commodity, the price of which is determined by its cost of production. All commodities are subject to this law. There may be temporary fluctuations in the price of a commodity due to variations in supply and demand; but these compensate one another in the long run, and a mean level can be traced through the ups and downs which is the actual cost of production.

 

Wages fluctuate because they are the price of a commodity. The demand for labour power, however, is seldom in in excess of the supply; consequently wages for any particular form of labour power are rarely above the cost of production for that form. Striking an average and taking the more highly-paid with the lowest, we say the cost of production of labour power is synonymous with the cost of living.

 

As there are always more workers than jobs, competition for them is so keen that wages can always be kept down to a point which, for the bulk of workers, represents a meagre portion of the necessaries of life. It therefore seems to them, that if the cost of necessaries were lower their lot would be improved. The same result would follow if wages were higher and commodities remained the same in price.

The workers, only seeing this much, are between a rock and a hard place. They can struggle for higher wages, or reduced prices; or both. To concentrate on price reductions is a fallacy; because cost of production determines prices. True the price at one time may be above the cost of production, but that very fact induces greater production and thereby reduces price. While some commodities are rising in price others may be falling. In the first case the capital is increased, in the second it is withdrawn. In this way the fluctuations compensate each other, and the cost of production is shown to be the real price. Hence the fallacy.

On the other hand, if the workers concentrate on wages they are met by stubborn opposition from the masters, and are powerless to effect any real improvement in their standard of living. Only by constant struggle, even, can they prevent reductions in their standard in living. On either hand they are faced with forces that are invulnerable to their puny weapons. Hence the need for them to understand socialism.

Almost hopeless as is the struggle for higher wages any agitation for reduced prices is still more so. While Capitalism lasts your social suffering whatever its form is the necessary accompaniment of your slave existence, it must continue while you tolerate that system. There is nothing to choose between deterioration as a slum dweller, an unemployed worker, or an employed one for that matter. Your choice must be between freedom or slavery.

A study of socialism will teach you that it will be just as hellish to be sweated and robbed of life under a Labour Party administered capitalism as under any Tory government. 

 

There is no way of running capitalism beneficially to the masses and without conflicts and crises. To abolish capitalism is the only way to peace, plenty, happiness and security. Socialism is the solution, common ownership of the means of life and production for use the world over. Socialism is the solution and the urgency for its establishment is now. So don’t be fooled, fellow workers. It's your votes they are after. Socialism requires your understanding. It may be a long road, that depends on you, but until you bring about socialism you have nothing to look forward to saving a fate worse than death and lots and lots of promises.

What We Want and Why

 Apologists for capitalism argue that members of the capitalist class work also. This may be true in a few instances, but not for the giant concerns which produce most of the wealth in modern society. The shareholders in these companies take no part in production at all.

And it is argued that the large shareholder with investments in dozens of different companies earns huge dividends because of the organising ability. It is impossible for one person to have the knowledge of the complicated processes involved in running one company, let alone trying to run several. The capitalist class employ workers to do their organising for them and even employ members of the working class to advise them how to invest their money.

Another argument put forward is that the capitalist class are entitled to their large profits because of the risks they take with their investments. What risk is involved in buying State bonds? And in these days of “increased” crime is the person who keeps money at home not taking a bigger risk of losing it? And what about the meagre compensation the working class receive though they risk their lives and health in such industries as mining, transport, etc.

Another aspect of the “risk” argument is that for saving money and sacrificing present pleasures the capitalist must have some recompense. To talk of  Bezos, Zuckerman or Musk foregoing pleasures because of their investments is absurd. Again to abstain from the pleasures of present spending is to indulge in the pleasure of making more money for future spending.

The capitalist class also claim that by investing their wealth they provide the working class with the means to live. Many history books have been written describing how the rising capitalist class dispossessed the majority of the population of the means to live. The capitalist class invest their money to procure profit. They buy the workers' physical and mental energies by the week or the month and after the workers have used their energies for the specified period producing wealth for the capitalist class they receive back just sufficient to enable them to live. The difference between what the worker produces and what he receives is the source of the capitalists' wealth and is the object of the whole process.

The Socialist Party is frequently asked why it is not in favour of, but actually opposes various forms of state or municipal ownership. Our general reason is that nationalisation will not benefit the workers.

The employing class after they have paid wages and all expenses, they expect to receive an amount greater than the total they have spent on manufacturing and selling a product. The difference between income and expenditure goes into the pockets of the owners or shareholders as profits or dividends, and this happens irrespective of whether those shareholders have or have not any business knowledge and irrespective of whether they spend the whole of their time idling and enjoying themselves, or whether they take an active interest in the concern in which their money is invested. Generally speaking, the amount of their profits depends not on their own efforts, but on the amount of capital they happen to possess.

We object to the control of the means of life being in the hands of non-workers. We object to the owners of capital being permitted to consume part of the wealth the workers have produced while they take no active part in production themselves. We hold that society can now dispense with the capitalist class, because they no longer perform any function which cannot be performed at least as well by members of the working class, by which we mean all those people who, because they do not possess property, are compelled to offer their services to those who do. We do not regard the investment of capital as a service that entitles the owner to live at the expense of those who do the work. We, therefore, advocate socialism. Society itself will set aside wealth in the form of machinery, etc., for the purpose of future production, instead of paying a privileged class for permission to use the results of the workers’ past labour, as is done at present. The capitalist class will cease to exist. This is what we mean by socialism.

On the other hand, nationalisation, or municipalisation, is when the State or some local authority assumes ownership or control instead of leaving it in the hands of any private capitalist or group of capitalists who choose to invest their money in it. They all perpetuate the very features which is essential to capitalism and which leads us to seek the abolition of the system. We know very well that it is the system itself that is the cause of the chief economic evils from which the workers suffer. Capitalism is the enemy; not big capitalists or little capitalists, not the private employer or the government bureaucrat, not high wages or low wages, not private or state capitalism, but simply capitalism. The essential feature of capitalism is reproduced in nationalisation proposals. IN ALL OF THEM THE CAPITALIST INVESTOR IS STILL GOING TO BE ALLOWED TO LIVE OFF THE PROCEEDS OF HIS INVESTMENT. The only difference—a minor one—is that he will receive interest on government or municipal bonds instead of receiving profits or dividends on ordinary company shares. He will still be able to live without working, and the system which permits this will still be the capitalist system. It is merely another reform of capitalism. We do not believe that there is any fundamental distinction so long as the wage system exists, between the relationship of a private employer to his workers and the relationship of a municipality or State to its workers. In each case, the latter sell their labour-power, and their capacity to sell it at a fair price depends on their capacity, through their trade unions to refuse to work.

The main underlying cause of the worker’s poverty is the private ownership of the means of producing material wealth. The class that lives by owning, maintains its position because it controls the political machinery and can invoke the aid of the armed forces whenever necessary. The remedy can only be the abolition of private ownership

There is a way out. The Socialist Party knows the answer.

The solution for the working class is the abolition of production for profit. Production solely for use is the answer. It needs, however, a majority of the population to take the necessary action. The Socialist Party spends time and energy promoting the socialist case because we know that unless the majority of people understand and take the necessary action, we can, by ourselves, do nothing to end the present state of affairs. Social production with private ownership can never provide for the needs of humanity. The wages system always prevents the distribution of goods, for demand is restricted by the ability to pay. Social production with common ownership is the only way in which distribution can be arranged to satisfy mankind. It is the establishment of common ownership of the means of production and distribution which the Socialist Party is striving to obtain.

Socialist Standard No. 1402 June 2021

 

JUNE 2021 PDF

• Editorial

• Pathfinders

• Letters

• Cooking the Books 1

• Apartness in Israel

• Material World

• What’s left of Labour?

• Capitalism, socialism and work

• Cultures, multi and otherwise

• The daily class struggle

• The soul of Oscar Wilde

• Cooking the Books 2

• Proper Gander

• Book reviews

• 50 Years Ago

• Party news

• Meetings

• Rear View

Why Capitalism?

 Politicians will promise to provide better social services improvements. Each party and their candidate will be blaming the other parties for the things that are not right. Labour will blame the Tory government and the Tories will blame Labour.

 Most of you will not know much about the Socialist Party, this may be the first you have heard of us. Certainly, many people have heard the word “socialism” but imagine it has something to do with nationalised industries, or the form of state capitalism in the former Soviet Union or China. So it is understandable if you regard Socialism as just another political cliche, used to win votes for Labour politicians and hence having little to do with working class interests.

The Socialist Party is different from all other political parties because the Socialist Party stands solely for socialism. Why do we make this principle our aim and objective? Because we do not think that the present social system, capitalism, can be made to work in the interests of the majority of people.

You do not need the Socialist Party to tell you there is something badly wrong with the way society is organised at present.

WHY should tens of thousands of workers be homeless and poorly housed when there are thousands of empty houses and large numbers of unemployed building workers?

WHY must vast numbers of workers suffer and even die waiting for hospital treatment while there is no shortage of resources being allocated to the armed forces, which exist to kill people, not cure people?

WHY is food locked away in cold storage or dumped in the sea while around the world 40,000 starve to death daily?

WHY?

BECAUSE we live under a capitalist system where profit for the few who own and control the means of wealth production and distribution is more important than the needs of the majority.

This crazy way of running society only carries on because the majority have been persuaded to vote for it. Conned into believing that there is no other way, that capitalism run by leaders of left, right and centre, is the only option. The present social madhouse will not last forever. Workers whose political support has upheld the system can be persuaded to withdraw that support.

WHAT CAN YOU DO?

Unlike the political promises being thrown at you by our political opponents, the Socialist Party promises it will do absolutely nothing for you. If you want to change society you can do it yourself. Socialism is about people—all of us— regardless of age, race, gender, owning and controlling the resources of society, for use, not profit. At last the world will belong to the people who inhabit it, with all of us having free access to the abundant goods and services which society can produce.

If you think the socialist objective is worth registering your support for, rather than casting another wasted vote for capitalism, or not voting at all, then vote for genuine socialist candidates. Do not vote for ourselves if you want a leader to put things right for you. The Socialist Party wants only socialist votes and plenty of them, so we can show those who uphold this rotten system that there is a growing number of workers seeing through it. 

 

DON’T JUST VOTE—THINK,

DON’T JUST THINK—ACT.