Equality, Edward Bellamy [online e book reading .txt] 📗

considered justified in making a large addition to the margin of profit charged."

"Then you conclude, Margaret, that, even if disposed to be fair toward the community, a capitalist of those days would not have been able safely to reduce his rate of profits sufficiently to bring the people much nearer the point of being able to consume their products than they were."

"Precisely so. The root of the evil lay in the tremendous difficulties, complexities, mistakes, risks, and wastes with which private capitalism necessarily involved the processes of production and distribution, which under public capitalism have become so entirely simple, expeditious, and certain."

"Then it seems it is not necessary to consider our capitalist ancestors moral monsters in order to account for the tragical outcome of their economic methods."

"By no means. The capitalists were no doubt good and bad, like other people, but probably stood up as well as any people could against the depraving influences of a system which in fifty years would have turned heaven itself into hell."

MARION EXPLAINS OVER-PRODUCTION.

"That will do, Margaret," said the teacher. "We will next ask you, Marion, to assist us in further elucidating the subject. If the profit system worked according to the description we have listened to, we shall be prepared to learn that the economic situation was marked by the existence of large stores of consumable goods in the hands of the profit takers which they would be glad to sell, and, on the other hand, by a great population composed of the original producers of the goods, who were in sharp need of the goods but unable to purchase them. How does this theory agree with the facts stated in the histories?"

"So well," replied Marion, "that one might almost think you had been reading them." At which the class smiled, and so did I.

"Describe, without unnecessary infusion of humor--for the subject was not humorous to our ancestors--the condition of things to which you refer. Did our great-grandfathers recognize in this excess of goods over buyers a cause of economic disturbance?"

"They recognized it as the great and constant cause of such disturbance. The perpetual burden of their complaints was dull times, stagnant trade, glut of products. Occasionally they had brief periods of what they called good times, resulting from a little brisker buying, but in the best of what they called good times the condition of the mass of the people was what we should call abjectly wretched."

"What was the term by which they most commonly described the presence in the market of more products than could be sold?"

"Overproduction."

"Was it meant by this expression that there had been actually more food, clothing, and other good things produced than the people could use?"

"Not at all. The mass of the people were in great need always, and in more bitter need than ever precisely at the times when the business machine was clogged by what they called overproduction. The people, if they could have obtained access to the overproduced goods, would at any time have consumed them in a moment and loudly called for more. The trouble was, as has been said, that the profits charged by the capitalist manufacturers and traders had put them out of the power of the original producers to buy back with the price they had received for their labor or products."

"To what have our historians been wont to compare the condition of the community under the profit system?"

"To that of a victim of the disease of chronic dyspepsia so prevalent among our ancestors."

"Please develop the parallel."

"In dyspepsia the patient suffered from inability to assimilate food. With abundance of dainties at hand he wasted away from the lack of power to absorb nutriment. Although unable to eat enough to support life, he was constantly suffering the pangs of indigestion, and while actually starving for want of nourishment, was tormented by the sensation of an overloaded stomach. Now, the economic condition of a community under the profit system afforded a striking analogy to the plight of such a dyspeptic. The masses of the people were always in bitter need of all things, and were abundantly able by their industry to provide for all their needs, but the profit system would not permit them to consume even what they produced, much less produce what they could. No sooner did they take the first edge off of their appetite than the commercial system was seized with the pangs of acute indigestion and all the symptoms of an overloaded system, which nothing but a course of starvation would relieve, after which the experience would be repeated with the same result, and so on indefinitely."

"Can you explain why such an extraordinary misnomer as overproduction, should be applied to a situation that would better be described as famine; why a condition should be said to result from glut when it was obviously the consequence of enforced abstinence? Surely, the mistake was equivalent to diagnosing a case of starvation as one of gluttony."

"It was because the economists and the learned classes, who alone had a voice, regarded the economic question entirely from the side of the capitalists and ignored the interest of the people. From the point of view of the capitalist it was a case of overproduction when he had charged profits on products which took them beyond the power of the people to buy, and so the economist writing in his interest called it. From the point of view of the capitalist, and consequently of the economist, the only question was the condition of the market, not of the people. They did not concern themselves whether the people were famished or glutted; the only question was the condition of the market. Their maxim that demand governed supply, and supply would always meet demand, referred in no way to the demand representing human need, but wholly to an artificial thing called the market, itself the product of the profit system."

"What was the market?"

"The market was the number of those who had money to buy with. Those who had no money were non-existent so far as the market was concerned, and in proportion as people had little money they were a small part of the market. The needs of the market were the needs of those who had the money to supply their needs with. The rest, who had needs in plenty but no money, were not counted, though they were as a hundred to one of the moneyed. The market was supplied when those who could buy had enough, though the most of the people had little and many had nothing. The market was glutted when the well-to-do were satisfied, though starving and naked mobs might riot in the streets."

"Would such a thing be possible nowadays as full storehouses and a hungry and naked people existing at the same time?"

"Of course not. Until every one was satisfied there could be no such thing as overproduct now. Our system is so arranged that there can be too little nowhere so long as there is too much anywhere. But the old system had no circulation of the blood."

"What name did our ancestors give to the various economic disturbances which they ascribed to overproduction?"

"They called them commercial crises. That is to say, there was a chronic state of glut which might be called a chronic crisis, but every now and then the arrears resulting from the constant discrepancy between consumption and production accumulated to such a degree as to nearly block business. When this happened they called it, in distinction from the chronic glut, a crisis or panic, on account of the blind terror which it caused."

"To what cause did they ascribe the crises?"

"To almost everything besides the perfectly plain reason. An extensive literature seems to have been devoted to the subject. There are shelves of it up at the museum which I have been trying to go through, or at least to skim over, in connection with this study. If the books were not so dull in style they would be very amusing, just on account of the extraordinary ingenuity the writers display in avoiding the natural and obvious explanation of the facts they discuss. They even go into astronomy."

"What do you mean?"

"I suppose the class will think I am romancing, but it is a fact that one of the most famous of the theories by which our ancestors accounted for the periodical breakdowns of business resulting from the profit system was the so-called 'sun-spot theory.' During the first half of the nineteenth century it so happened that there were severe crises at periods about ten or eleven years apart. Now, it happened that sun spots were at a maximum about every ten years, and a certain eminent English economist concluded that these sun spots caused the panics. Later on it seems this theory was found unsatisfactory, and gave place to the lack-of-confidence explanation."

"And what was that?"

"I could not exactly make out, but it seemed reasonable to suppose that there must have developed a considerable lack of confidence in an economic system which turned out such results."

"Marion, I fear you do not bring a spirit of sympathy to the study of the ways of our forefathers, and without sympathy we can not understand others."

"I am afraid they are a little too other, for me to understand."

The class tittered, and Marion was allowed to take her seat.

JOHN TELLS ABOUT COMPETITION.

"Now, John," said the teacher, "we will ask you a few questions. We have seen by what process a chronic glut of goods in the market resulted from the operation of the profit system to put products out of reach of the purchasing power of the people at large. Now, what notable characteristic and main feature of the business system of our forefathers resulted from the glut thus produced?"

"I suppose you refer to competition?" said the boy.

"Yes. What was competition and what caused it, referring especially to the competition between capitalists?"

"It resulted, as you intimate, from the insufficient consuming power of the public at large, which in turn resulted from the profit system. If the wage-earners and first-hand producers had received purchasing power sufficient to enable them to take up their numerical proportion of the total product offered in the market, it would have been cleared of goods without any effort on the part of sellers, for the buyers would have sought the sellers and been enough to buy all. But the purchasing power of the masses, owing to the profits charged on their products, being left wholly inadequate to take those products out of the market, there naturally followed a great struggle between the capitalists engaged in production and distribution to divert the most possible of the all too scanty buying each in his own direction. The total buying could not of course be increased a dollar without relatively, or absolutely increasing the purchasing power in the people's hands, but it was possible by effort to alter the particular directions in which it should be expended, and this was the sole aim and effect of competition. Our forefathers thought it a wonderfully fine thing. They called it the life of trade, but, as we have seen, it was merely a symptom of the effect of the profit system to cripple consumption."

"What were the methods which the capitalists engaged in production and exchange made use of to bring trade their way, as they used to say?"

"First was direct solicitation of buyers and a shameless vaunting of every one's wares by himself and his hired mouthpieces, coupled with a