Anton Pannekoek

Workers' Councils

1941-42 (-44, -47)

Published: The Dutch edition was published as "De arbeidersraaden" by the Communistenbond Spartacus in Amsterdam in 1946 under the pseudonym P. Aartsz. The first English edition was published by J. A. Dawson in 1950.

Transcriber: John Gray

HTML: Jonas Holmgren

Proofed: and corrected by Paul Germanotta for the MIA, April 2011.

Contents:

The main part of this book has been written during the war under the occupation of Holland by the Germans, the first three parts 1942; the fourth 1944; a fifth part was added after the war, 1947. The author, who during many years attentively observed, and sometimes actively took part in, the workers' movement, gives here a summary of what from these experiences and study may be derived as to methods and aims of the workers' fight for freedom. A somewhat different Dutch version was published in Holland, 1946. The English version was printed at Melbourne serially, as an addition to the monthly "Southern Advocate for Workers' Councils," during the years 1947-49. Owing to many difficulties the publication in book-form was delayed until 1950.

J. A. Dawson

This book has been written in the war years 1941-42 under the occupation of Holland by the Germans. The author, who during many years attentively observed and sometimes actively took part in the workers' movement, gives here a summary of what from these experiences and study may be derived as to methods and aims of the workers' fight for freedom. What a century of workers' struggles presents to us is neither a series of ever again failing attempts at liberalism, nor a steadfast forward march of the workers following a fixed plan of old well-tried tactics. With the development of society we see arise new forms of fight, and this development imposed by the growth of capitalism and the growth of the working class, must go on in ever mightier display.

The first part of the book shows the task which the workers have to perform and the fight they have to wage. The following parts treat the social and spiritual trends arising in the bourgeoisie that determine the conditions under which the workers had and have to fight. All the discourses are based on the deep connection between production system and class-fight elucidated in Marxian theory.

-- The Editor.

In the present and coming times, now that Europe is devastated and mankind is impoverished by world war, it impends upon the workers of the world to organize industry, in order to free themselves from want and exploitation. It will be their task to take into their own hands the management of the production of goods. To accomplish this great and difficult work, it will be necessary to fully recognize the present character of labor. The better their knowledge of society and of the position of labor in it, the less difficulties, disappointments and setbacks they will encounter in this striving.

The basis of society is the production of all goods necessary to life. This production, for the most important part, takes place by means of highly developed technics in large factories and plants by complicated machines. This development of technics, from small tools that could be handled by one man, to big machines handled by large collectives of workers of different kind, took place in the last centuries. Though small tools are still used as accessories, and small shops are still numerous, they hardly play a role in the bulk of the production.

Each factory is an organization carefully adapted to its aims; an organization of dead as well as of living forces, of instruments and workers. The forms and the character of this organization are determined by the aims it has to serve. What are these aims?

In the present time, production is dominated by capital. The capitalist, possessor of money, founded the factory, bought the machines and the raw materials, hires the workers and makes them produce goods that can be sold. That is, he buys the labor power of the workers, to be spent in their daily task, and he pays to them its value, the wages by which they can procure what they need to live and to continually restore their labor power. The value a worker creates in his daily work in adding it to the value of the raw materials, is larger than what he needs for his living and receives for his labor power. The difference that the capitalist gets in his hands when the product is sold, the surplus-value, forms his profit, which in so far as it is not consumed, is accumulated into new capital. The labor power of the working class thus may be compared with an ore mine, that in exploitation gives out a produce exceeding the cost bestowed on it. Hence the term exploitation of labor by capital. Capital itself is the product of labor; its bulk is accumulated surplus-value.

Capital is master of production; it has the factory, the machines, the produced goods; the workers work at its command; its aims dominate the work and determine the character of the organization. The aim of capital is to make profit. The capitalist is not driven by the desire to provide his fellow-men with the necessities of life; he is driven by the necessity of making money. If he has a shoe factory he is not animated by compassion for the painful feet of other people; he is animated by the knowledge that his enterprise must yield profit and that he will go bankrupt if his profits are insufficient. Of course, the normal way to make profit is to produce goods that can be sold at a good price, and they can be sold, normally, only when they are necessary and practical consumption-goods for the buyers. So the shoe-maker, to produce profits for himself, has to produce well-fitting shoes, better or cheaper shoes than others make. Thus, normally, capitalist production succeeds in what should be the aim of production, to provide mankind with its life necessities. But the many cases, where it is more profitable to produce superfluous luxuries for the rich or trash for the poor, or to sell the whole plant to a competitor who may close it, show that the primary object of present production is profit for the capital.

This object determines the character of the organization of the work in the shop. First it establishes the command by one absolute master. If he is the owner himself, he has to take care that he does not lose his capital; on the contrary he must increase it. His interest dominates the work; the workers are his "hands," and they have to obey. It determines his part and his function in the work. Should the workers complain of their long hours and fatiguing work, he points to his task and his solicitudes that keep him busy till late in the night after they have gone home without concerning themselves any more. He forgets to tell, what he hardly understands himself, that all his often strenuous work, all his worry that keeps him awake at night, serves only the profit, not the production itself. It deals with the problems of how to sell his products, how to outrival his competitors, how to bring the largest possible part of the total surplus-value into his own coffers. His work is not a productive work; his exertions in fighting his competitors are useless for society. But he is the master and his aims direct the shop.

If he is an appointed director he knows that he is appointed to produce profit for the shareholders. If he does not manage to do so, he is dismissed and replaced by another man. Of course, he must be a good expert, he must understand the technics of his branch, to be able to direct the work of production. But still more he must be expert in profit-making. In the first place he must understand the technics of increasing the net-profit, by finding out how to produce at least cost, how to sell with most success and how to beat his rivals. This every director knows. It determines the management of business. It also determines the organization within the shop.

The organization of the production within the shop is conducted along two lines, of technical and of commercial organization. The rapid development of technics in the last century, based upon a wonderful growth of science, has improved the methods of work in every branch. Better technics is the best weapon in competition, because it secures extra profit at the cost of the rivals. This development increased the productivity of labor, it made the goods for use and consumption cheaper, more abundant and more varied, it increased the means of comfort, and, by lowering the cost of living, i.e., the value of labor power, enormously raised the profit of capital. This high stage of technical development brought into the factory a rapidly increasing number of experts, engineers, chemists, physicists, well versed by their training at universities and laboratories in science. They are necessary to direct the intricate technical processes, and to improve them by regular application of new scientific discoveries. Under their supervision act skilled technicians and workers. So the technical organization shows a carefully regulated collaboration of various kinds of workers, a small number of university-trained specialists, a larger number of qualified professionals and skilled workers, besides a great mass of unskilled workers to do the manual work. Their combined efforts are needed to run the machines and to produce the goods.

The commercial organization has to conduct the sale of the product. It studies markets and prices, it advertises, it trains agents to stimulate buying. It includes the so-called scientific management, to cut down costs by distributing men and means; it devises incentives to stimulate the workers to more strenuous efforts; it turns advertising into a kind of science taught even at universities. It is not less, it is even more important than technics to the capitalist masters; it is the chief weapon in their mutual fight. From the view-point of providing society with its life necessities, however, it is an entirely useless waste of capacities.

But also the forms of technical organization are determined by the same motive of profit. Hence the strict limitation of the better paid scientific experts to a small number, combined with a mass of cheap unskilled labor. Hence the structure of society at large, with its low pay and poor education for the masses, with its higher pay—so much as higher education demands for the constant filling of the ranks—for a scientifically trained minority.

These technical officials have not only the care of the technical processes of production. Under capitalism they have also to act as taskmasters of the workers. Because under capitalism production of goods is inseparably connected with production of profit, both being one and the same action, the two characters of the shop-officials, of a scientific leader of production and of a commanding helper of exploitation, are intimately combined. So their position is ambiguous. On the one hand they are the collaborators of the manual workers, by their scientific knowledge directing the process of transformation of the materials, by their skill increasing the profits; they also are exploited by capital. On the other hand they are the underlings of capital, appointed to hustle the workers and to assist the capitalist in exploiting them.

It may seem that not everywhere the workers are thus exploited by capital. In public-utility enterprises, for instance, or in co-operative factories. Even if we leave aside the fact that the former, by their profit, often must contribute to the public funds, thus relieving the taxes of the propertied class, the difference with other business is not essential. As a rule co-operatives have to compete with private enterprises; and public utilities are controlled by the capitalist public by attentive criticism. The usually borrowed capital needed in the business demands its interest, out of the profits. As in other enterprises there is the personal command of a director and the forcing up of the tempo of the work. There is the same exploitation as in every capitalist enterprise. There may be a difference in degree; part of what otherwise is profit may be used to increase the wages and to improve the conditions of labor. But a limit is soon reached. In this respect they may be compared with private model enterprises where sensible broad-minded directors try to attach the workers by better treatment, by giving them the impression of a privileged position, and so are rewarded by a better output and increased profit. But it is out of the question that the workers here, or in public utilities or co-operatives, should consider themselves as servants of a community, to which to devote all their energy. Directors and workers are living in the social surroundings and the feelings of their respective classes. Labor has here the same capitalist character as elsewhere; it constitutes its deeper essential nature under the superficial differences of somewhat better or worse conditions.

Labor under capitalism in its essential nature is a system of squeezing. The workers must be driven to the utmost exertion of their powers, either by hard constraint or by the kinder arts of persuasion. Capital itself is in a constraint; if it cannot compete, if the profits are inadequate, the business will collapse. Against this pressure the workers defend themselves by a continual instinctive resistance. If not, if they willingly should give way, more than their daily labor power would be taken from them. It would be an encroaching upon their funds of bodily power, their vital power would be exhausted before its time, as to some extent is the case now; degeneration, annihilation of health and strength, of themselves and their offspring, would be the result. So resist they must. Thus every shop, every enterprise, even outside the times of sharp conflict, of strikes or wage reductions, is the scene of a constant silent war, of a perpetual struggle, of pressure and counter-pressure. Rising and falling under its influence, a certain norm of wages, hours and tempo of labor establishes itself, keeping them just at the limit of what is tolerable and intolerable (if intolerable the total of production is effected). Hence the two classes, workers and capitalists, while having to put up with each other in the daily course of work, in deepest essence, by their opposite interests, are implacable foes, living, when not fighting, in a kind of armed peace.

Labor in itself is not repulsive. Labor for the supplying of his needs is a necessity imposed on man by nature. Like all other living beings, man has to exert his forces to provide for his food. Nature has given them bodily organs and mental powers, muscles, nerves and brains, to conform to this necessity. Their wants and their means are harmoniously adapted to one another in the regular living of their life. So labor, as the normal use of their limbs and capacities, is a normal impulse for man and animal alike. In the necessity of providing food and shelter there is, to be sure, an element of constraint. Free spontaneousness in the use of muscles and nerves, all in their turn, in following every whim, in work or play, lies at the bottom of human nature. The constraint of his needs compels man to regular work, to suppression of the impulse of the moment, to exertion of his powers, to patient perseverance and self-restraint. But this self-restraint, necessary as it is for the preservation of oneself, of the family, of the community, affords the satisfaction of vanquishing impediments in himself or the surrounding world, and gives the proud feeling of reaching self-imposed aims. Fixed by its social character, by practice and custom in family, tribe or village, the habit of regular work grows into a new nature itself, into a natural mode of life, a harmonious unity of needs and powers, of duties and disposition. Thus in farming the surrounding nature is transformed into a safe home through a lifelong heavy or placid toil. Thus in every people, each in its individual way, the old handicraft gave to the artisans the joy of applying their skill and fantasy in the making of good and beautiful things for use.

All this has perished since capital became master of labor. In production for the market, for sale, the goods are commodities which besides their utility for the buyer, have exchange-value, embodying the labor implemented; this exchange-value determines the money they bring. Formerly a worker in moderate hours—leaving room for occasional strong exertion—could produce enough for his living. But the profit of capital consists in what the worker can produce in surplus to his living. The more value he produces and the less the value of what he consumes, the larger is the surplus-value seized by capital. Hence his life-necessities are reduced, his standard of life is lowered as much as possible, his hours are increased, the tempo of his work is accelerated. Now labor loses entirely its old character of pleasant use of body and limbs. Now labor turns into a curse and an outrage. And this remains its true character, however mitigated by social laws and by trade-union action, both results of the desperate resistance of the workers against their unbearable degradation. What they may attain is to turn capitalism from a rude abuse into a normal exploitation. Still then labor, being labor under capitalism, keeps its innermost character of inhuman toil: the workers, compelled by the threat of hunger to strain their forces at foreign command, for foreign profit, without genuine interest, in the monotonous fabrication of uninteresting or bad things, driven to the utmost of what the overworked body can sustain, are used up at an early age. Ignorant economists, unacquainted with the nature of capitalism, seeing the strong aversion of the workers from their work, conclude that productive work, by its very nature, is repulsive to man, and must be imposed on unwilling mankind by strong means of constraint.

Of course, this character of their work is not always consciously felt by the workers. Sometimes the original nature of work, as an impulsive eagerness of action, giving contentment, asserts itself. Especially in young people, kept ignorant of capitalism and full of ambition to show their capacities as fully-qualified workers, feeling themselves moreover possessor of an inexhaustible labor-power. Capitalism has its well-advised ways of exploiting this disposition. Afterwards, with the growing solicitudes and duties for the family, the worker feels caught between the pressure of the constraint and the limit of his powers, as in tightening fetters he is unable to throw off. And at last, feeling his forces decay at an age that for middle-class man is the time of full and matured power, he has to suffer exploitation in tacit resignation, in continuous fear of being thrown away as a worn-out tool.

Bad and damnable as work under capitalism may be, still worse is the lack of work. Like every commodity, labor-power sometimes finds no buyer. The problematic liberty of the worker to choose his master goes hand in hand with the liberty of the capitalist to engage or to dismiss his workers. In the continuous development of capitalism, in the founding of new enterprises and the decline or collapse of old ones, the workers are driven to and fro, are accumulated here, dismissed there. So they must consider it good luck even, when they are allowed to let themselves be exploited. Then they perceive that they are at the mercy of capital. That only with the consent of the masters they have access to the machines that wait for their handling.

Unemployment is the worst scourge of the working class under capitalism. It is inherent in capitalism. As an ever returning feature it accompanies the periodical crises and depressions, which during the entire reign of capitalism ravaged society at regular intervals. They are a consequence of the anarchy of capitalist production. Each capitalist as an independent master of his enterprise is free to manage it at his will, to produce what he thinks profitable or to close the shop when profits are failing. Contrary to the careful organization within the factory there is a complete lack of organization in the totality of social production. The rapid increase of capital through the accumulated profits, the necessity to find profits also for the new capital, urges a rapid increase of production flooding the market with unsaleable goods. Then comes the collapse, reducing not only the profits and destroying the superfluous capital, but also turning the accumulated hosts of workers out of the factories, throwing them upon their own resources or on meagre charity. Then wages are lowered, strikes are ineffective, the mass of the unemployed presses as a heavy weight upon the working conditions. What has been gained by hard fight in times of prosperity is often lost in times of depression. Unemployment was always the chief impediment to a continuous raising of the life standard of the working class.

There have been economists alleging that by the modern development of big business this pernicious alternation of crises and prosperity would disappear. They expected that cartels and trusts, monopolizing as they do large branches of industry, would bring a certain amount of organization into the anarchy of production and smooth its irregularities. They did not take into account that the primary cause, the yearning for profit, remains, driving the organized groups into a fiercer competition, now with mightier forces. The incapacity of modern capitalism to cope with its anarchy was shown in a grim light by the world crisis of 1930. During a number of long years production seemed to have definitely collapsed. Over the whole world millions of workers, of farmers, even of intellectuals were reduced to living on the doles, which the governments by necessity, had to provide: From this crisis of production the present war crisis took its origin.

In this crisis the true character of capitalism and the impossibility to maintain it, was shown to mankind as in a searchlight. There were the millions of people lacking the means to provide for their life necessities. There were the millions of workers with strong arms, eager to work; there were the machines in thousands of shops, ready to whirl and to produce an abundance of goods. But it was not allowed. The capitalist ownership of the means of production stood between the workers and the machines. This ownership, affirmed if necessary by the power of police and State, forbade the workers to touch the machines and to produce all that they themselves and society needed for their existence. The machines had to stand and rust, the workers had to hang around and suffer want. Why? Because capitalism is unable to manage the mighty technical and productive powers of mankind to conform to their original aim, to provide for the needs of society.

To be sure, capitalism now is trying to introduce some sort of organization and planned production. Its insatiable profit-hunger cannot be satisfied within the old realms; it is driven to expand over the world, to seize the riches, to open the markets, to subject the peoples of other continents. In a fierce competition each of the capitalist groups must try to conquer or to keep to themselves the richest portions of the world. Whereas the capitalist class in England, France, Holland made easy profits by the exploitation of rich colonies, conquered in former wars, German capitalism with its energy, its capacities, its rapid development, that had come too late in the division of the colonial world, could only get its share by striving for world-power, by preparing for world war. It had to be the aggressor, the others were the defenders. So it was the first to put into action and to organize all the powers of society for this purpose; and then the others had to follow its example.

In this struggle for life between the big capitalist powers the inefficiency of private capitalism could no longer be allowed to persist. Unemployment now was a foolish, nay, a criminal waste of badly needed manpower. A strict and careful organization had to secure the full use of all the labor power and the fighting power of the nation. Now the untenability of capitalism showed itself just as grimly from another side. Unemployment was now turned into its opposite, into compulsory labor. Compulsory toil and fighting at the frontiers where the millions of strong young men, by the most refined means of destruction mutilate, kill, exterminate, "wipe out" each other, for the world-power of their capitalist masters. Compulsory labor in the factories where all the rest, women and children included, are assiduously producing ever more of these engines of murder, whereas the production of the life necessities is constricted to the utmost minimum. Shortage and want in everything needed for life and the falling back to the poorest and ugliest barbarism is the outcome of the highest development of science and technics, is the glorious fruit of the thinking and working of so many generations! Why? Because notwithstanding all delusive talk about community and fellowship, organized capitalism, too, is unable to handle the rich productive powers of mankind to their true purpose, using them instead for destruction.

Thus the working class is confronted with the necessity of itself taking the production in hand. The mastery over the machines, over the means of production, must be taken out of the unworthy hands that abuse them. This is the common cause of all producers, of all who do the real productive work in society, the workers, the technicians, the farmers. But it is the workers, chief and permanent sufferers from the capitalist system, and, moreover, majority of the population, on whom it impends to free themselves and the world from this scourge. They must manage the means of production. They must be masters of the factories, masters of their own labor, to conduct it at their own will. Then the machines will be put to their true use, the production of abundance of goods to provide for the life necessities of all.

This is the task of the workers in the days to come. This is the only road to freedom. This is the revolution for which society is ripening. By such a revolution the character of production is entirely reversed; new principles will form the basis of society. First, because the exploitation ceases. The produce of the common labor [will belong to] all those who take part in the work. No surplus-value to capital any more; ended is the claim of superfluous capitalists to a part of the produce.

More important still than the cessation of their share in the produce is the cessation of their command over the production. Once the workers are masters over the shops the capitalists lose their power of leaving in disuse the machines, these riches of mankind, precious product of the mental and manual exertion of so many generations of workers and thinkers. With the capitalists disappears their power to dictate what superfluous luxuries or what rubbish shall be produced. When the workers have command over the machines they will apply them for the production of all that the life of society requires.

This will be possible only by combining all the factories, as the separate members of one body, into a well organized system of production. The connection that under capitalism is the fortuitous outcome of blind competition and marketing, depending on purchase and sale, is then the object of conscious planning. Then, instead of the partial and imperfect attempts at organization of modern capitalism, that only lead to fiercer fight and destruction, comes the perfect organization of production, growing into a world-wide system of collaboration. For the producing classes cannot be competitors, only collaborators.

These three characteristics of the new production mean a new world. The cessation of the profit for capital, the cessation of unemployment of machines and men, the conscious adequate regulation of production, the increase of the produce through efficient organization give to each worker a larger quantity of product with less labor. Now the way is opened for a further development of productivity. By the application of all technical progress the produce will increase in such a degree that abundance for all will be joined to the disappearance of toil.

Such a change in the system of labor implies a change of Law. Not, of course, that new laws must first be enacted by Parliament or Congress. It concerns changes in the depth of society [in the customs and practice of society], far beyond the reach of such temporary things as Parliamentary acts. It relates to the fundamental laws, not of one country only, but of human society, founded on man's convictions of Right and Justice.

Such a change in the system of labor implies a change of Law. Not, of course, that new laws must first be enacted by Parliament or Congress. It concerns changes in the depth of society [in the customs and practice of society], far beyond the reach of such temporary things as Parliamentary acts. It relates to the fundamental laws, not of one country only, but of human society, founded on man's convictions of Right and Justice.

These laws are not immutable. To be sure, the ruling classes at all times have tried to perpetuate the existing Law by proclaiming that it is based on nature, founded on the eternal rights of man, or sanctified by religion. This, for the sake of upholding their prerogatives and dooming the exploited classes to perpetual slavery. Historical evidence, on the contrary, shows that law continually changed in line with the changing feelings of right and wrong.

The sense of right and wrong, the consciousness of justice in men, is not accidental. It grows up, irresistibly, by nature, out of what they experience as the fundamental conditions of their life. Society must live; so the relations of men must be regulated in such a way—it is this that law provides for—that the production of life-necessities may go on unimpeded. Right is what is essentially good and necessary for life. Not only useful for the moment, but needed generally; not for the life of single individuals, but for people at large, for the community; not for personal or temporal interests, but for the common and lasting weal. If the life-conditions change, if the system of production develops into new forms, the relations between men change, their feeling of what is right or wrong changes with them, and the law has to be altered.

This is seen most clearly in the laws regulating the right of property. In the original savage and barbarian state the land was considered as belonging to the tribe that lived on it, hunting or pasturing. Expressed in our terms, we should say that the land was common property of the tribe that used it for its living and defended it against other tribes. The self-made weapons and tools were accessories of the individual, hence were a kind of private property, though not in our conscious and exclusive sense of this word, in consequence of the strong mutual bonds amongst the tribesmen. Not laws, but use and custom regulated their mutual relations. Such primitive peoples, even agricultural peoples in later times (as the Russian peasants of before 1860) could not conceive the idea of private ownership of a tract of land, just as we cannot conceive the idea of private ownership of a quantum of air.

These regulations had to change when the tribes settled and expanded, cleared the forests and dissolved into separate individuals (i.e., families), each working a separate lot. They changed still more when handicraft separated from agriculture, when from the casual work of all, it became the continual work of some: when the products became commodities, to be sold in regular commerce and to be consumed by others than the producers. It is quite natural that the farmer who worked a piece of land, who improved it, who did his work at his own will, without interference from others, had the free disposal of the land and the tools; that the produce was his; that land and produce were his property. Restrictions might be needed for defense, in mediaeval times, in the form of possible feudal obligations. It is quite natural that the artisan, as the only one who handled his tools, had the exclusive disposal of them, as well as of the things he made; that he was the sole owner.

Thus private ownership became the fundamental law of a society founded on small-scale working-units. Without being expressly formulated it was felt as a necessary right that whoever exclusively handled the tools, the land, the product, must be master of them, must have the free disposal of them. Private ownership of the means of production belongs as its necessary juridical attribute to small trade.

It remained so, when capitalism came to be master of industry. It was even more consciously expressed, and the French Revolution proclaimed liberty, equality and property the fundamental Rights of the citizen. It was private ownership of the means of production simply applied, when, instead of some apprentices, the master-craftsman hired a larger number of servants to assist him, to work with his tools and to make products for him to sell. By means of exploiting the labor-power of the workers, the factories and machines, as private property of the capitalist, became the source of an immense and ever growing increase of capital. Here private ownership performed a new function in society. As capitalist ownership, it ascertained power and increasing wealth to the new ruling class, the capitalists, and enabled them strongly to develop the productivity of labor and to expand their rule over the earth. So this juridical institute, notwithstanding the degradation and misery of the exploited workers, was felt as a good and beneficent, even necessary institution, promising an unlimited progress of society.

This development, however, gradually changed the inner character of the social system. And thereby again the function of private ownership changed. With the joint-stock companies the twofold character of the capitalist factory-owner, that of directing the production and that of pocketing the surplus-value, is splitting up. Labor and property, in olden times intimately connected, are now separated. Owners are the shareholders, living outside the process of production, idling in distant country-houses and maybe gambling at the exchange. A shareholder has no direct connection with the work. His property does not consist in tools for him to work with. His property consists simply in pieces of paper, in shares of enterprises of which he does not even know the whereabouts. His function in society is that of a parasite. His ownership does not mean that he commands and directs the machines: this is the sole right of the director. It means only that he may claim a certain amount of money without having to work for it. The property in hand, his shares, are certificates showing his right—guaranteed by law and government, by courts and police—to participate in the profits; titles of companionship in that large Society for Exploitation of the World, that is capitalism.

The work in the factories goes on quite apart from the shareholders. Here the director and the staff have the care all day, to regulate, to run about, to think of everything, the workers are working and toiling from morning till evening, hurried and abused. Everybody has to exert himself to the utmost to render the output as large as possible. But the product of their common work is not for those who did the work. Just as in olden times burgesses were ransacked by gangs of wayside robbers, so now people entirely foreign to the production come forward and, on the credit of their papers (as registered owners of share scrip), seize the chief part of the produce. Not violently; without having to move as much as a finger they find it put on their banking account, automatically. Only a poor wage or a moderate salary is left for those who together did the work of production; all the rest is dividend taken by the shareholders. Is this madness? It is the new function of private ownership of the means of production. It is simply the praxis of old inherited law, applied to the new forms of labor to which it does no longer fit.

Here we see how the social function of a juridical institute, in consequence of the gradual change of the forms of production, turns into the very reverse of its original aim. Private ownership, originally a means to give everybody the possibility of productive work, now has turned into the means to prevent the workers from the free use of the instruments of production. Originally a means to ascertain to the workers the fruits of their labor, it now turned into a means to deprive the workers of the fruits of their labor for the benefit of a class of useless parasites.

How is it, then, that such obsolete law still holds sway over society? First, because the numerous middle-class and small-business people, the farmers and independent artisans cling to it, in the belief that it assures them their small property and their living; but with the result that often, with their mortgaged holdings, they are the victims of usury and bank-capital. When saying: I am my own master, they mean: I have not to obey a foreign master; community in work as collaborating equals lies far outside their imagination. Secondly and chiefly, however, because the power of the State, with its police and military force, upholds old law for the benefit of the ruling class, the capitalists.

In the working class, now, the consciousness of this contradiction is arising as a new sense of Right and Justice. The old right, through the development of small trade into big business, has turned into wrong, and it is felt as a wrong. It contradicts the obvious rule that those who do the work and handle the equipment must dispose of it in order to arrange and execute the work in the best way. The small tool, the small lot could be handled and worked by a single person with his family. So that person had the disposal of it, was the owner. The big machines, the factories, the large enterprises can only be handled and worked by an organized body of workers, a community of collaborating forces. So this body, the community, must have the disposal of it, in order to arrange the work according to their common will. This common ownership does not mean an ownership in the old sense of the word, as the right of using or misusing at will. Each enterprise is, but part, the total productive apparatus of society; so the right of each body or community of producers is limited by the superior right of society, and has to be carried out in regular connection with the others.

Common ownership must not be confounded with public ownership. In public ownership, often advocated by notable social reformers, the State or another political body is master of the production. The workers are not masters of their work, they are commanded by the State officials, who are leading and directing the production. Whatever may be the conditions of labor, however human and considerate the treatment, the fundamental fact is that not the workers themselves, but the officials dispose of the means of production, dispose of the product, manage the entire process, decide what part of the produce shall be reserved for innovations, for wear, for improvements, for social expenses, what part has to fall to the workers what part to themselves. In short, the workers still receive wages, a share of the product determined by the masters. Under public ownership of the means of production, the workers are still subjected to and exploited by a ruling class. Public ownership is a middle-class program of a modernized and disguised form of capitalism. Common ownership by the producers can be the only goal of the working class.

Thus the revolution of the system of production is intimately bound up with a revolution of Law. It is based on a change in the deepest convictions of Right and Justice. Each production-system consists of the application of a certain technique, combined with a certain Law regulating the relations of men in their work, fixing their rights and duties. The technics of small tools combined with private ownership means a society of free and equal competing small producers. The technics of big machines, combined with private ownership, means capitalism. The technics of big machines, combined with common ownership, means a free collaborating humanity. Thus capitalism is an intermediate system, a transitional form resulting from the application of the old Law to the new technics. While the technical development enormously increased the powers of man, the inherited law that regulated the use of these powers subsisted nearly unchanged. No wonder that it proved inadequate, and that society fell to such distress. This is the deepest sense of the present world crisis. Mankind simply neglected in time to adapt its old law to its new technical powers. Therefore it now suffers ruin and destruction.

Technique is a given power. To be sure, its rapid development is the work of man, the natural result of thinking over the work, of experience and experiment, of exertion and competition. But once established, its application is automatic, outside our free choice, imposed like a given force of nature. We cannot go back, as poets have wished, to the general use of the small tools of our forefathers. Law, on the other hand, must be instituted by man with conscious design. Such as it is established, it determines freedom or slavery of man towards man and towards his technical equipment.

When inherited law, in consequence of the silent growth of technics, has turned into a means of exploitation and oppression, it becomes an object of contest between the social classes, the exploiting and the exploited class. So long as the exploited class dutifully acknowledges existing law as Right and Justice, so long its exploitation remains lawful and unchallenged. When then gradually in the masses arises a growing consciousness of their exploitation, at the same time new conceptions of Right awaken in them. With the growing feeling that existing law is contrary of justice, their will is roused to change it and to make their convictions of right and justice the law of society. This means that the sense of being wronged is not sufficient. Only when in great masses of the workers this sense grows into such clear and deep convictions of Right that they permeate the entire being, filling it with a firm determination and a fiery enthusiasm, will they be able to develop the powers needed for revolving the social structure. Even then this will be only the preliminary condition. A heavy and lengthy struggle to overcome the resistance of the capitalist class defending its rule with the utmost power, will be needed to establish the new order.

Thus the idea of their common ownership of the means of production is beginning to take hold of the minds of the workers. Once they feel the new order, their own mastery over labor to be a matter of necessity and of justice, all their thoughts and all their actions will be consecrated to its realization. They know that it cannot be done at once; a long period of fight will be unavoidable. To break the stubborn resistance of the ruling classes the workers will have to exert their utmost forces. All the powers of mind and character, of organization and knowledge, which they are capable of mustering must be developed. And first of all they have to make clear to themselves what it is they aim at, what this new order means.

Man, when he has to do a work, first conceives it in his mind as a plan, as a more or less conscious design. This distinguishes the actions of man from the instinctive actions of animals. This also holds, in principle, for the common struggles, the revolutionary actions of social classes. Not entirely, to be sure; there is a great deal of unpremeditated spontaneous impulse in their outbursts of passionate revolt. The fighting workers are not an army conducted after a neatly conceived plan of action by a staff of able leaders. They are a people gradually rising out of submissiveness and ignorance, gradually coming to consciousness of their exploitation, again and again driven to fight for better living conditions, by degrees developing their powers. New feelings spring up in their hearts, new thoughts arise in their heads, how the world might and should be. New wishes, new ideals, new aims fill their mind and direct their will and action. Their aims gradually take a more concise shape. From the simple strife for better working conditions, in the beginning, they grow into the idea of a fundamental reorganization of society. For several generations already the ideal of a world without exploitation and oppression has taken hold of the minds of the workers. Nowadays the conception of the workers themselves master of the means of production, themselves directing their labor, arises ever more strongly in their minds.

This new organization of labor we have to investigate and to clarify to ourselves and to one another, devoting to it the best powers of our mind. We cannot devise it as a fantasy; we derive it from the real conditions and needs of present work and present workers. It cannot, of course, be depicted in detail; we do not know the future conditions that will determine its precise forms. Those forms will take shape in the minds of the workers then facing the task. We must content ourselves for the present to trace the general outlines only, the leading ideas that will direct the actions of the working class. They will be as the guiding stars that in all the vicissitudes of victory and adversity in fight, of success and failure in organization, keep the eyes steadily directed towards the great goal. They must be elucidated not by minute descriptions of detail, but chiefly by comparing the principles of the new world with the known forms of existing organizations.

When the workers seize the factories to organize the work an immensity of new and difficult problems arises before them. But they dispose of an immensity of new powers also. A new system of production never is an artificial structure erected at will. It arises as an irresistible process of nature, as a convulsion moving society in its deepest entrails, evoking the mightiest forces and passions in man. It is the result of a tenacious and probably long class struggle. The forces required for construction can develop and grow up in this fight only.

What are the foundations of the new society? They are the social forces of fellowship and solidarity, of discipline and enthusiasm, the moral forces of self-sacrifice and devotion to the community, the spiritual forces of knowledge, of courage and perseverance, the firm organization that binds all these forces into a unity of purpose, all of them are the outcome of the class fight. They cannot purposely be prepared in advance. Their first traces arise spontaneously in the workers out of their common exploitation; and then they grow incessantly through the necessities of the fight, under the influence of experience and of mutual inducement and instruction. They must grow because their fullness brings victory, their deficiency defeat. But even after a success in fighting attempts at new construction must fail, so long as the social forces are insufficient, so long as the new principles do not entirely occupy the workers' hearts and minds. And in that case, since mankind must live, since production must go on, other powers, powers of constraint, dominating and suppressing forces, will take the production in their hands. So the fight has to be taken up ever anew, till the social forces in the working class have reached such a height as to render them capable of being the self-governing masters of society.

The great task of the workers is the organization of production on a new basis. It has to begin with the organization within the shop. Capitalism, too, had a carefully planned shop-organization; but the principles of the new organization are entirely different. The technical basis is the same in both cases; it is the discipline of work imposed by the regular running of the machines. But the social basis, the mutual relations of men, are the very opposite of what they were. Collaboration of equal companions replaces the command of masters and the obedience of servants. The sense of duty, the devotion to the community, the praise or blame of the comrades according to efforts and achievements, as incentives take the place of fear for hunger and perpetual risk of losing the job. Instead of the passive utensils and victims of capital, the workers are now the self-reliant masters and organizers of production, exalted by the proud feeling of being active co-operators in the rise of a new humanity.

The ruling body in this shop-organization is the entirety of the collaborating workers. They assemble to discuss matters and in assembly take their decisions. So everybody who takes part in the work takes part in the regulation of the common work. This is all self-evident and normal, and the method seems to be identical to that followed when under capitalism groups or unions of workers had to decide by vote on the common affairs. But there are essential differences. In the unions there was usually a division of task between the officials and the members; the officials prepared and devised the proposals and the members voted. With their fatigued bodies and weary minds the workers had to leave the conceiving to others; it was only in part or in appearance that they managed their own affairs. In the common management of the shop, however, they have to do everything themselves, the conceiving, the devising, as well as the deciding. Devotion and emulation not only play their role in everybody's work-task, but are still more essential in the common task of regulating the whole. First, because it is the all-important common cause, which they cannot leave to others. Secondly, because it deals with the mutual relations in their own work, in which they are all interested and all competent, which therefore commands their profound considerations, and which thorough discussion must settle. So it is not only the bodily, but still more the mental effort bestowed by each in his participation in the general regulation that is the object of competition and appreciation. The discussion, moreover, must bear another character than in societies and unions under capitalism, where there are always differences of personal interest. There in his deeper consciousness everybody is concerned with his own safeguarding, and discussions have to adjust and to smooth out these differences in the common action. Here, however, in the new community of labor, all the interests are essentially the same, and all thoughts are directed to the common aim of effective co-operative organization.

In great factories and plants the number of workers is too large to gather in one meeting, and far too large for a real and thorough discussion. Here decisions can only be taken in two steps, by the combined action of assemblies of the separate sections of the plant, and assemblies of central committees of delegates. The functions and the practice of these committees cannot exactly be ascertained in advance now; they are entirely new, an essential part of the new economic structure. When facing the practical needs the workers will develop the practical structure. Yet something of their character may, in general lines, be derived by comparing them with bodies and organizations known to us.

In the old capitalist world central committees of delegates are a well-known institution. We have them in parliaments, in all kinds of political bodies and in leading boards of societies and unions. They are invested with authority over their constituents, or even rule over them as their masters. As such it is in line with a social system of a working mass of people exploited and commanded by a ruling minority. Now, however, the task is to build up a form of organization for a body of collaborating free producers, actually and mentally controlling their common productive action, regulating it as equals after their own will—a quite different social system. Again in the old world we have union councils administering the current affairs after the membership, assembling at greater intervals, have fixed the general policy. What these councils then have to deal with are the trifles of the day, not vital questions. Now, however, basis and essence of life itself are concerned, the productive work, that occupies and has to occupy everybody's mind continually, as the one and greatest object of their thoughts.

The new conditions of labor make these shop-committees something quite different from everything we know in the capitalist world. They are central, but not ruling bodies, they are no governing board. The delegates constituting them have been sent by sectional assemblies with special instructions; they return to these assemblies to report on the discussion and its result, and after further deliberation the same or other delegates may go up with new instructions. In such a way they act as the connecting links between the personnels of the separate sections. Neither are the shop-committees bodies of experts to provide the directing regulations for the non-expert multitude. Of course, experts will be necessary, single or in bodies, to deal with the special technical and scientific problems. The shop-committees, however, have to deal with the daily proceedings, the mutual relations, the regulation of the work, where everybody is expert and at the same time an interested party. Among other items it is up to them to put into practice what special experts suggest. Nor are the shop-committees the responsible bodies for the good management of the whole, with the consequence that every member could shift his part of responsibility upon the impersonal collectivity. On the contrary, whereas this management is incumbent upon all in common, single persons may be consigned special tasks which to fulfill with their entire capacity, in full responsibility, whilst they carry all the honors for the achievement.

All members of the personnel, men and women, younger and older, who take part in the work, as equal companions take their part in this shop-organization, in the actual work as well as in the general regulation. Of course, there will be much difference in the personal tasks, easier or more difficult according to force and capacities, different in character according to inclination and abilities. And, of course, the differences in general insight will give a preponderance to the advice of the most intelligent. At first, when as an inheritance of capitalism there are large differences in education and training, the lack of good technical and general knowledge in the masses will be felt as a heavy deficiency. Then the small number of highly trained professional technicians and scientists must act as technical leaders, without thereby acquiring a commanding or socially leading position, without gaining privileges other than the estimation of their companions and the moral authority that always attaches to capacity and knowledge.

The organization of a shop is the conscious arrangement and connection of all the separate procedures into one whole. All these interconnections of mutually adapted operations may be represented in a well-ordered scheme, a mental image of the actual process. As such it was present in the first planning and in the later improvements and enlargements. This image must be present in the minds of all the collaborating workers; they all must have a thorough acquaintance with what is their own common affair. Just as a map or a graph fixes and shows in a plain, to everyone intelligible picture the connections of a complicated totality, so here the state of the total enterprise, at every moment, in all its developments must be rendered visible by adequate representations. In numerical form this is done by bookkeeping. Bookkeeping registers and fixes all that happens in the process of production: what raw materials enter the shop, what machines are procured, what product they yield, how much labor is bestowed upon the products, how many hours of work are given by every worker, what products are delivered. It follows and describes the flow of materials through the process of production. It allows continually to compare, in comprehensive accounts, the results with the previous estimates in planning. So the production in the shop is made into a mentally controlled process.

Capitalist management of enterprises also knows mental control of the production. Here, too, the proceedings are represented by calculation and bookkeeping. But there is this fundamental difference that capitalist calculation is adapted entirely to the viewpoint of production of profit. It deals with prices and costs as its fundamental data; work and wages are only factors in the calculation of the resulting profit on the yearly balance account. In the new system of production, on the other hand, hours of work is the fundamental datum, whether they are still expressed, in the beginning, in money units, or in their own true form. In capitalist production calculation and bookkeeping is a secret of the direction, the office. It is no concern of the workers; they are objects of exploitation, they are only factors in the calculation of cost and produce, accessories to the machines. In the production under common ownership the bookkeeping is a public matter; it lies open to all. The workers have always a complete view of the course of the whole process. Only in this way they are able to discuss matters in the sectional assemblies and in the shop-committees, and to decide on what has to be done. The numerical results are made visible, moreover, by statistical tables, by graphs and pictures that display the situation at a glance. This information is not restricted to the personnel of the shop; it is a public matter, open to all outsiders. Every shop is only a member in the social production, and also the connection of its doings with the work outside is expressed in the book-keeping. Thus insight in the production going on in every enterprise is a piece of common knowledge for all the producers.

Labor is a social process. Each enterprise is part of the productive body of society. The total social production is formed by their connection and collaboration. Like the cells that constitute a living organism, they cannot exist isolated and cut off from the body. So the organization of the work inside the shop is only one-half of the task of the workers. Over it, a still more important task, stands the joining of the separate enterprises, their combination into a social organization.

Whereas organization within the shop already existed under capitalism, and had only to be replaced by another, based on a new foundation, social organization of all the shops into one whole is, or was until recent years, something entirely new, without precedent. So utterly new, that during the entire nineteenth century the establishing of this organization, under the name of "socialism" was considered the main task of the working class. Capitalism consisted of an unorganized mass of independent enterprises—"a jostling crowd of separate private employers," as the program of the Labor Party expresses it—connected only by the chance relations of market and competition, resulting in bankruptcies, overproduction and crisis, unemployment and an enormous waste of materials and labor power. To abolish it, the working class should conquer the political power and use it to organize industry and production. This State-socialism was considered, then, as the first step into a new development.

In the last years the situation has changed in so far that capitalism itself has made a beginning with State-run organization. It is driven not only by the simple wish to increase productivity and profits through a rational planning of production. In Russia there was the necessity of making up for the backwardness of economic development by means of a deliberate rapid organization of industry by the bolshevist government. In Germany it was the fight for world power that drove to State control of production and State-organization of industry. This fight was so heavy a task that only by concentrating into the hands of the State the power over all productive forces could the German capitalist class have a chance of success. In national-socialist organization property and profit—though strongly cut for State needs—remain with the private capitalist, but the disposal over the means of production, their direction and management has been taken over by the State officials. By an efficient organization the unimpaired production of profits is secured for capital and for the State. This organization of the production at large is founded on the same principles as the organization within the factory, on the personal command of the general director of society, the Leader, the head of the State. Wherever Government takes control over industry, authority and constraint take the place of the former freedom of the capitalist producers. The political power of the State officials is greatly strengthened by their economic power, by their command over the means of production, the foundation of society.

The principle of the working class is in every respect the exact opposite. The organization of production by the workers is founded on free collaboration: no masters, no servants. The combination of all the enterprises into one social organization takes place after the same principle. The mechanism for this purpose must be built up by the workers.

Given the impossibility to collect the workers of all the factories into one meeting, they can only express their will by means of delegates. For such bodies of delegates in later times the name of workers' councils has come into use. Every collaborating group of personnel designates the members who in the council assemblies have to express its opinion and its wishes. These took an active part themselves in the deliberations of this group, they came to the front as able defenders of the views that carried the majority. Now they are sent as the spokesmen of the group to confront these views with those of other groups in order to come to a collective decision. Though their personal abilities play a role in persuading the colleagues and in clearing problems, their weight does not lay in their individual strength, but in the strength of the community that delegated them. What carries weight are not simple opinions, but still more the will and the readiness of the group to act accordingly. Different persons will act as delegates according to the different questions raised and the forthcoming problems.

The chief problem, the basis of all the rest, is the production itself. Its organization has two sides, the establishment of general rules and norms and the practical work itself. Norms and rules must be established for the mutual relations in the work, for the rights and duties. Under capitalism the norm consisted in the command of the master, the director. Under State-capitalism it consisted in the mightier command of the Leader, the central government. Now, however, all producers are free and equal. Now in the economic field of labor the same change takes place as occurred in former centuries in the political field, with the rise of the middle class. When the rule of the citizens came in place of the rule of the absolute monarch, this could not mean that for his arbitrary will the arbitrary will of everybody was substituted. It meant that, henceforward, laws established by the common will should regulate the public rights and duties. So now, in the realm of labor, the command of the master gives way to rules fixed in common, to regulate the social rights and duties, in production and consumption. To formulate them will be the first task of the workers' councils. This is not a difficult task, not a matter of profound study or serious discordance. For every worker these rules will immediately spring up in his consciousness as the natural basis of the new society: everyone's duty to take part in the production in accordance with his forces and capacities, everyone's right to enjoy his adequate part of the collective product.

How will the quantities of labor spent and the quantities of product to which he is entitled be measured? In a society where the goods are produced directly for consumption there is no market to exchange them; and no value, as expression of the labor contained in them establishes itself automatically out of the processes of buying and selling. Here the labor spent must be expressed in a direct way by the number of hours. The administration keeps book [records] of the hours of labor contained in every piece or unit quantity of product, as well as of the hours spent by each of the workers. In the averages over all the workers of a factory, and finally, over all the factories of the same category, the personal differences are smoothed out and the personal results are intercompared.

In the first times of transition when there is much devastation to be repaired, the first problem is to build up the production apparatus and to keep people alive. It is quite possible that the habit, imposed by war and famine, of having the indispensable foodstuffs distributed without distinction is simply continued. It is most probable that, in those times of reconstruction, when all the forces must be exerted to the utmost, when, moreover, the new moral principles of common labor are only gradually forming, the right of consumption will be coupled to the performance of work. The old popular saying that whoever does not work shall not eat, expresses an instinctive feeling of justice. Here it is not only the recognition that labor is the basis of all human life, but also the proclaiming that now there is an end to capitalist exploitation and to appropriating the fruits of foreign labor by property titles of an idle class.

This does not mean, of course, that now the total produce is distributed among the producers, according to the time given by each. Or, expressed in another way, that every worker receives, in the form of products, just the quantity of hours of labor spent in working. A considerable part of the work must be spent on the common property, on the perfection and enlargement of the productive apparatus. Under capitalism part of the surplus-value served this purpose; the capitalist had to use part of his profit, accumulated into new capital, to innovate, expand and modernize his technical equipment, in his case driven by the necessity not to be outflanked by his competitors. So the progress in technics took place in forms of exploitation. Now, in the new form of production, this progress is the common concern of the workers. Keeping themselves alive is the most immediate, but building the basis of future production is the most glorious part of their task. They will have to settle what part of their total labor shall be spent on the making of better machines and more efficient tools, on research and experiment, for facilitating the work and improving the production.

Moreover, part of the total time and labor of society must be spent on non-productive, though necessary activities, on general administration, on education, on medical service. Children and old people will receive their share of the produce without corresponding achievements. People incapable of work must be sustained; and especially in the first time there will be a large number of human wrecks left by the former capitalist world. Probably the rule will prevail that the productive work is the task of the younger part of the adults; or, in other words, is the task of everybody during that period of his life when both the tendency and the capacity for vigorous activity are greatest. By the rapid increase of the productivity of labor this part, the time needed to produce all the life necessities, will continually decrease, and an increasing part of life will be available for other purposes and activities.

The basis of the social organization of production consists in a careful administration, in the form of statistics and bookkeeping. Statistics of the consumption of all the different goods, statistics of the capacity of the industrial plants, of the machines, of the soil, of the mines, of the means of transport, statistics of the population and the resources of towns, districts and countries, all these present the foundation of the entire economic process in wellordered rows of numerical data. Statistics of economic processes were already known under capitalism; but they remained imperfect because of the independence and the limited view of the private business men, and they found only a limited application. Now they are the starting point in the organization of production; to produce the right quantity of goods, the quantity used or wanted must be known. At the same time statistics as the compressed result of the numerical registration of the process of production, the comprehensive summary of the bookkeeping, expresses the course of development.

The general bookkeeping, comprehending and encompassing the administrations of the separate enterprises, combines them all into a representation of the economic process of society. In different degrees of range it registers the entire process of transformation of matter, following it from the raw materials at their origin, through all the factories, through all the hands, down to the goods ready for consumption. In uniting the results of co-operating enterprises of a sort into one whole it compares their efficiency, it averages the hours of labor needed and directs the attention to the ways open for progress. Once the organization of production has been carried out the administration is the comparatively simple task of a network of interconnected computing offices. Every enterprise, every contingent group of enterprises, every branch of production, every township or district, for production and for consumption, has its office, to take care of the administration, to collect, to treat and to discuss the figures and to put them into a perspicuous form easy to survey. Their combined work makes the material basis of life a mentally dominated process. As a plain and intelligible numerical image the process of production is laid open to everybody's views. Here mankind views and controls its own life. What the workers and their councils devise and plan in organized collaboration is shown in character and results in the figures of bookkeeping. Only because they are perpetually before the eyes of every worker the direction of social production by the producers themselves is rendered possible.

This organization of economic life is entirely different from the forms of organization developed under capitalism; it is more perfect and more simple. The intricacies and difficulties in capitalist organization, for which the much glorified genius of big business men was needed, always dealt with their mutual struggle, with the arts and tricks of capitalist warfare to subdue or annihilate the competitors. All this has disappeared now. The plain aim, the providing for the life necessities of mankind, makes the entire structure plain and direct. Administration of large quantities, fundamentally, is hardly more difficult or more complicated than that of small quantities; only a couple of cyphers has to be put behind the figures. The rich and multiform diversity of wants and wishes that in small groups of people is hardly less than in large masses, now, by their massal character, can be secured more easily and more completely.

The function and the place numerical administration occupies in society depends on the character of this society. Financial administration of States was always necessary as part of the central government, and the computing officials were subordinate servants of the kings or other rulers. Where in modern capitalism production is subjected to an encompassing central organization, those who have the central administration in their hands will be the leading directors of economy and develop into a ruling bureaucracy. When in Russia the revolution of 1917 led to a rapid expansion of industry and hosts of workers still permeated by the barbarous ignorance of the villages crowded into the new factories they lacked the power to check the rising dominance of the bureaucracy then organizing into a new ruling class. When in Germany, 1933, a sternly organized party conquered the State power, as organ of its central administration it took in hand the organization of all the forces of capitalism.

Conditions are entirely different when the workers as masters of their labor and as free producers organize production. The administration by means of bookkeeping and computing is a special task of certain persons, just as hammering steel or baking bread is a special task of other persons, all equally useful and necessary. The workers in the computing offices are neither servants nor rulers. They are not officials in the service of the workers' councils, obediently having to perform their orders. They are groups of workers, like other groups collectively regulating their work themselves, disposing of their implements, performing their duties, as does every group, in continual connection with the needs of the whole. They are the experts who have to provide the basical data of the discussions and decisions in the assemblies of workers and of councils. They have to collect the data, to present them in an easily intelligible form of tables, of graphs, of pictures, so that every worker at every moment has a clear image of the state of things. Their knowledge is not a private property giving them power; they are not a body with exclusive administrative knowledge that thereby somehow could exert a deciding influence. The product of their labor, the numerical insight needed for the work's progress, is available to all. This general knowledge is the foundation of all the discussions and decisions of the workers and their councils by which the organization of labor is performed.

For the first time in history the economic life, in general and in detail, lies as an open book before the eyes of mankind. The foundations of society, under capitalism a huge mass hidden in the dark depths, dimly lighted here and there by statistics on commerce and production, now has entered into the full daylight and shows its detailed structure. Here we dispose of a science of society consisting of a well-ordered knowledge of facts, out of which leading causal relations are readily grasped. It forms the basis of the social organization of labor, just as the knowledge of the facts of nature, condensed they too into causal relations, forms the basis of the technical organization of labor. As a knowledge of the common simple facts of daily life it is available to everyone and enables him to survey and grasp the necessities of the whole as well as his own part in it. It forms the spiritual equipment through which the producers are able to direct the production and to control their world.

The principles of the new structure of society appear so natural and self-evident, that there may seem to be little room for doubts or objections. The doubts come from the old traditions that fill the minds with cobwebs, so long as the fresh storm wind of social activity does not blow through them. The objections are raised by the other classes that up till now are leading society. So first we have to consider the objections of the bourgeoisie, the ruling class of capitalists.

One might say that the objections of the members of the capitalist class do not matter. We cannot convince them, nor is this necessary. Their ideas and convictions, as well as our own, are class ideas, determined by class conditions different from ours by the difference in life conditions and in social function. We have not to convince them by reasoning, but to beat them by power.

But, we should not forget that capitalist power to a great extent is spiritual power, power over the minds of the workers. The ideas of the ruling class dominate society and permeate the minds of the exploited classes. They are fixed there, fundamentally, by the inner strength and necessity of the system of production; they are actually implanted there by education and propaganda, by the influence of school, church, press, literature, broadcasting and film. As long as this holds, the working class, lacking consciousness of its class position, acquiescing in exploitation as the normal condition of life, does not think of revolt and cannot fight. Minds submissive to the doctrines of the masters cannot hope to win freedom. They must overcome the spiritual sway of capitalism over their minds before they actually can throw off its yoke. Capitalism must be beaten theoretically before it can be beaten materially. Because then only the absolute certainty of the truth of their opinions as well as of the justice of their aims can give such confidence to the workers as is needed for victory. Because then only hesitation and misgivings will lame the forces of the foe. Because then only the wavering middle groups, instead of fighting for capitalism, may to a certain degree conceive the necessity of social transformation and the benefit of the new order.

So we have to face the objections raised from the side of the capitalist class. They proceed directly from its view of the world. For the bourgeoisie, capitalism is the only possible and natural system of society, or at least, since more primitive forms preceded, its most developed final form. Hence all the phenomena presented by capitalism are not considered as temporary but as natural phenomena, founded on the eternal nature of man. The capitalist class sees the deep aversion of the workers against their daily labor; and how they only resign themselves to it by dire necessity. It concludes that man in the great mass is naturally averse to regular productive work and for that reason is bound to remain poor—with the exception of the energetic, industrious and capable minority, who love work and so become leaders, directors and capitalists. Then it follows that, if the workers should be collectively masters of the production, without the competitive principle of personal reward for personal exertion, the lazy majority will do as little as possible, trying to live upon what a more industrious minority performs; and universal poverty would inevitably be the result. All the wonderful progress, all the abundance capitalism has brought in the last century will then be lost, when the stimulus of personal interest is removed; and mankind will sink back into barbarism.

To refute such objections it is sufficient to point out that they form the natural viewpoint from the other side of society, from the side of the exploiting class. Never in history were the old rulers able to acknowledge the capability of a new rising class; they expected an inevitable failure as soon as it should try to manage the affairs; and the new class, conscious of its forces, could show these only in conquering and after having conquered power. Thus now the workers grow conscious of the inner strength of their class; their superior knowledge of the structure of society, of the character of productive labor shows them the futility of the capitalist point of view. They will have to prove their capacities, certainly. But not in the form of standing a test beforehand. Their test will be their fight and victory.

This is no arguing with the capitalist class, but to the fellow workers. The middle class ideas still permeating large masses of them consist chiefly in doubt and disbelief in their own forces. As long as a class does not believe in themselves, they cannot expect that other groups should believe in them. This lack of self-confidence, the chief weakness now, cannot be entirely removed under capitalism with its many degrading and exhausting influences. In times of emergency, however, world crisis and impending ruin, compelling the working class to revolt and fight, will also, once it has won, compel it to take control of production. Then the command of dire need treads under foot the implanted timorous diffidence of their own forces, and the imposed task rouses unexpected energies. Whatever hesitation or doubt may be in their minds this one thing the workers know for certain: that they, better than the idle people of property, know what work is, that they can work, and that they will work. The futile objections of the capitalist class will collapse with this class itself.

More serious objections are raised from other sides. From such as consider themselves and are considered as friends, as allies or spokesmen of the working class. In later capitalism there is a widespread opinion, among intellectuals and social reformers, among trade union leaders and social democrats, that capitalist production for profit is bad and has to disappear, and that it has to make place for some kind of socialist system of production. Organization of production, they say, is the means of producing abundance for all. The capitalist anarchy of the totality of production must be abolished by imitating the organized order within the factory. Just as in a well-directed enterprise the perfect running of every detail and the highest efficiency of the whole is secured by the central authority of the director and the staff, so in the still more complicated social structure the right interaction and connection of all its parts can only be secured by a central leading power.

The lack of such a ruling power, they say, is what must be objected to the system of organization by means of workers' councils. They argue that nowadays production is not the handling of simple tools, easily to survey by everybody, as in the bygone days of our ancestors, but the application of the most abstract sciences, accessible only to capable and well instructed minds. They say that a clear-sighted view on an intricate structure and its capable management demand talents that only few are gifted with; that it fails to see that the majority of people are dominated by narrow selfishness, and that they lack the capacities and even the interest to take up these large responsibilities. And should the workers in stupid presumption reject the leadership of the most capable, and try to direct production and society by their own masses, then, however industrious they may be, their failure would be inevitable; every factory would soon be a chaos, and decline would be the result. They must fail because they cannot muster a leading power of sufficient authority to impose obedience and thus to secure a smooth running of the complicated organization.

Where to find such a central power? They argue, we have it already in State government. Till now Government restricted its functions to political affairs; it will have to extend them to economic affairs—as already it is compelled to do in some minor cases—to the general management of production and distribution. For is not war against hunger and misery equally, and even more important than war against foreign enemies?

If the State directs the economic activities it acts as the central body of the community. The producers are master of the production, not in small groups separately, but in such a way that in their totality, as the entire class, as the whole people they are master. Public ownership of the means of production, for their most important part, means State ownership, the totality of the people being represented by the State. By the democratic State, of course, where people choose their rulers. A social and political organization where the masses choose their leaders, everywhere, in the factories, in the unions, in the State, may be called universal democracy. Once chosen, these leaders of course must be strictly obeyed. For only in this way, by obedience to the commandment of able leaders of production, the organization, can work smoothly and satisfactorily.

Such is the point of the spokesmen of State socialism. It is clear that this plan, of social organization is entirely different from a true disposal by the producers over the production. Only in name are the workers masters of their labor, just as only in name are the people masters of the State. In the so-called democracies, so-called because parliaments are chosen by universal suffrage, the governments are not at all delegates designated by the population as executors of its will. Everybody knows that in every country the government is in the hands of small, often hereditary or aristocratic groups of politicians and high officials. The parliamentarians, their body of supporters, are not selected by the constituents as mandataries to perform their will. The voters, practically, have only to choose between two sets of politicians, selected, presented and advertised to them by the two main political parties, whose leaders, according to the result, either form the ruling cabinet, or as "loyal opposition" stand in abeyance for their turn. The State officials, who manage the affairs, are not selected by the people either; they are appointed from above, by the government. Even if shrewd advertising calls them servants of the people, in reality they are its rulers, its masters. In the system of State socialism it is this bureaucracy of officials that, considerably enlarged, directs production. They dispose of the means of production, they have the upper command of labor. They have to take care that everything runs well, they administrate the process of production and determine the partition of the produce. Thus the workers have got new masters, who assign to them their wages and keep at their own disposal the remainder of the produce. This means that the workers are still exploited; State socialism may quite as well be called State capitalism, according to the emphasis laid on its different sides, and to the greater or smaller share of influence of the workers.

State socialism is a design for reconstructing society on the basis of a working class such as the middle class sees it and knows it under capitalism. In what is called a socialistic system of production the basic fabric of capitalism is preserved, the workers running the machines at the command of the leaders; but it is provided with a new improved upper story, a ruling class of humane reformers instead of profit-hungry capitalists. Reformers who as true benefactors of mankind apply their capacities to the ideal task of liberating the working masses from want and misery.

It is easily understood that during the 19th century, when the workers only began to resist and to fight, but were not yet able to win power over society, this socialist ideal found many adherents. Not only among socially minded of the middle class who sympathised with the suffering masses, but also among the workers themselves. For here loomed up before them a vision of liberation from their yoke by the simple expression of their opinion in voting, by the use of the political power of their ballot to put into government their redeemers instead of their oppressors. And certainly, if it were only a matter of placid discussion and free choice between capitalism and socialism on the part of the masses, then socialism would have a good chance.

But reality is different. Capitalism is in power and it defends its power. Can anybody have the illusion that the capitalist class would give up its rule, its domination, its profit, the very basis of its existence, hence its existence itself, at the result of a vote? Or still more, to a campaign of publicity arguments, of public opinion demonstrated in mass meetings or street processions? Of course it will fight, convinced of its right. We know that even for reforms, for every minor reform in capitalism there had to be fighting. Not to the utmost, to be sure; not or seldom by civil war and bloodshed. Because public opinion, in the bulk of the middle class, aroused by the determined resistance of the workers, saw that in their demands capitalism itself, in its essence, was not engaged, that profit as such was not endangered. Because it was felt that, on the contrary, capitalism would be consolidated rather, reform appeasing the workers and attaching them more firmly to the existing system.

If, however, the existence of the capitalist class itself, as a ruling and exploiting class is at stake, the entire middle class stands behind it. If its mastery, its exploitation, its profit is threatened, not by a sham revolution of outward appearances, but by a real revolution of the foundations of society, then we may be sure that it will resist with all its powers. Where, then, is the power to defeat it? The irrefutable arguments and the good intentions of noble-minded reformers, all these are not able to curb, still less to destroy its solid force. There is only one power in the world capable of vanquishing capitalism: the power of the working class. The working class can not be freed by others; it can only be freed by itself.

But the fight will be long and difficult. For the power of the capitalist class is enormous. It is firmly entrenched in the fabric of State and government, having all their institutes and resources at its disposal, their moral authority as well as their physical means of suppression. It disposes of all the treasures of the earth, and can spend unlimited amounts of money to recruit, pay and organize defenders, and to carry away public opinion. Its ideas and opinions pervade the entire society, fill up books and papers and dominate the minds of even the workers. Here lies the chief weakness of the masses. Against it the working class, certainly, has its numbers, already forming the majority of the population in capitalist countries. It has its momentous economic function, its direct hold over the machines, its power to run or stop them. But they are of no avail as long as their minds are dependent on and filled by the masters' ideas, as long as the workers are separate, selfish, narrow-minded, competing individuals. Number and economic importance alone are as the powers of a sleeping giant; they must first be awakened and activated by practical fight. Knowledge and unity must make them active power. Through the fight for existence, against exploitation and misery, against the power of the capitalist class and the State, through the fight for mastery over the means of production, the workers must acquire the consciousness of their position, the independence of thought, the knowledge of society, the solidarity and devotion to their community, the strong unity of class that will enable them to defeat capitalist power.

We cannot foresee what whirls of world politics will arouse them. But we can be sure that it is not a matter of years only, of a short revolutionary fight. It is a historical process that requires an entire epoch of ups and downs, of fights and lulls, but yet of unceasing progress. It is an intrinsic transformation of society, not only because the power relations of the classes are reversed, because property relations are changed, because production is reorganized on a new basis, but chiefly—decisive basis of all these things—because the working class itself in its deepest character is transformed. From obedient subjects they are changed into free and self-reliant masters of their fate, capable to build and manage their new world.

It was the great socialist humanitarian Robert Owen who has taught us that for a true socialist society the character of man must change; and that it is changed by environment and education. It was the great communist scientist Karl Marx who, completing the theory of his predecessor, has taught us that mankind itself has to change its environment and has to educate itself, by fighting, by the class-fight against exploitation and oppression. The theory of State socialism by reform is an arid mechanical doctrine in its belief that for a social revolution a change of political institutions, of outer conditions of life is sufficient, without the inner transformation of man that turns submissive slaves into proud and spirited fighters. State socialism was the political program of social-democracy, utopian, because it pretended to bring about a new system of production by simply converting people through propaganda to new political opinions. Social-democracy was not able, nor was it willing to lead the working class into a real revolutionary fight. So it went down when the modern development of big capitalism made socialism won by the ballot an obsolete illusion.

Yet socialist ideas still have their importance, though in a different way now. They are widespread all over society, among socially feeling middle-class people as well as among the masses of the workers. They express the longing for a world without exploitation, combined, in the workers, with the lack of confidence in their own power. This state of mind will not disappear at once after the first successes have been won; for it is then that the workers will perceive the immensity of their task, the still formidable powers of capital, and how all the traditions and institutions of the old world are barring their way. When thus they stand hesitating, socialism will point to what appears to be an easier road, not beset with such insurmountable difficulties and endless sacrifices. For just then, in consequence of their success, numbers of socially-minded reformers will join their ranks as capable allies and friends, putting their capacities in the service of the rising class, claiming, of course, important positions, to act and to lead the movement after their ideas. If the workers put them in office, if they install or support a socialist government, then the powerful existing machinery of the State is available for the new purpose and can be used to abolish capitalist exploitation and establish freedom by law. How far more attractive this mode of action than implacable class war! Yes, indeed; with the same result as what happened in revolutionary movements in the 19th century, when the masses who fought down the old regime in the streets, were thereupon invited to go home, to return to their work and put their trust in the self-appointed "provisional government" of politicians that was prepared to take matters in hand.

The propaganda of the socialist doctrine has the tendency to throw doubts into the minds of the workers, to raise or to strengthen distrust in their own powers, and to dim the consciousness of their task and their potentialities. That is the social function of socialism now, and at every moment of workers' success in the coming struggles. From the hard fight for freedom brilliant ahead, the workers are to be lured by the soft shine of a mild new servitude. Especially when capitalism should receive a severe blow, all who distrust and fear the unrestricted freedom of the masses, all who wish to preserve the distinction of masters and servants, of higher and lower, will rally round this banner. The appropriate catchwords will readily be framed: "order" and "authority" against "chaos," "socialism" and "organization" against "anarchy." Indeed, an economic system where the workers are themselves masters and leaders of their work, to middle-class thinking is identical with anarchy and chaos. Thus the only role socialism can play in future will be to act as an impediment standing in the way of the workers' fight for freedom.

To summarize: the socialist plan of reconstruction, brought forward by reformers, must fail, first because they have no means to produce the forces to vanquish the power of capitalism. Second, because only the workers themselves can do that. Exclusively by their own fight they can develop into the mighty power needed for such a task. It is this fight that socialism tries to forestall. And once the workers have beaten down capitalist power and won freedom, why should they give it up and submit to new masters?

There is a theory to explain why indeed they should and they must. The theory of actual inequality of men. It points out that nature itself makes them different: a capable, talented and energetic minority rises out of an incapable, stupid and slow majority. Notwithstanding all theories and decrees instituting formal and legal equality, the talented energetic minority takes the lead and the incapable majority follows and obeys.

It is not for the first time that a ruling class tries to explain, and so to perpetuate, its rule as the consequences of an inborn difference between two kinds of people, one destined by nature to ride, the other to be ridden. The landowning aristocracy of former centuries defended their privileged position by boasting their extraction from a nobler race of conquerors that had subdued the lower race of common people. Big capitalists explain their dominating place by the assertion that they have brains and other people have none. In the same way now especially the intellectuals, considering themselves the rightful rulers of tomorrow, claim their spiritual superiority. They form the rapidly increasing class of university-trained officials and free professions, specialized in mental work, in study of books and of science, and they consider themselves as the people most gifted with intellect. Hence they are destined to be leaders of the production, whereas the ungifted mass shall execute the manual work, for which no brains are needed. They are no defenders of capitalism; not capital, but intellect should direct labor. The more so, since now society is such a complicated structure, based on abstract and difficult science, that only the highest intellectual acumen is capable of embracing, grasping and handling it. Should the working masses, from lack of insight, fail to acknowledge this need of superior intellectual lead, should they stupidly try to take the direction into their own hands, chaos and ruin will be the inevitable consequence.

Now it must be remarked that the term intellectual here does not mean possessor of intellect. Intellectuals is the name for a class with special functions in social and economic life, for which mostly university training is needed. Intellect, good understanding, is found in people of all classes, among capitalists and artisans, among farmers and workers. What is found in the "intellectuals" is not a superior intelligence, but a special capacity of dealing with scientific abstractions and formulas, often merely of memorizing them, and combined, usually, with a limited notion of other realms of life. In their self-complacency appears a narrow intellectualism ignorant of the many other qualities that play an important role in all human activities. A rich and varied multitude of dispositions, different in character and in degree, is in man: here theoretical power of abstraction, there practical skill, here acute understanding, there rich fantasy, here rapidity of grasping, there deep brooding, here patient perseverance of purpose, there rash spontaneity, here indomitable courage in action and fight, there all-embracing ethical philanthropy. All of them are necessar