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country under protection or the capitalists of foreign countries under free trade. The literature of the controversy between Protectionists and Free Traders makes this very clear. Whatever else the Protectionists failed to prove, they were able to demonstrate that the condition of the people in free-trade countries was quite as bad as anywhere else, and, on the other hand, the Free Traders were equally conclusive in the proofs they presented that the people in protected countries, other things being equal, were no better off than those in free-trade lands. The question of Protection or Free Trade interested the capitalists only. For the people, it was the choice between the devil and the deep sea."

"Let us have a concrete illustration." said the teacher. "Take the case of England. She was beyond comparison the country of all others in the nineteenth century which had most foreign trade and commanded most foreign markets. If a large volume of foreign trade under conditions practically dictated by its capitalists was under the profit system a source of national prosperity to a country, we should expect to see the mass of the British people at the end of the nineteenth century enjoying an altogether extraordinary felicity and general welfare as compared with that of other peoples or any former people, for never before did a nation develop so vast a foreign commerce. What were the facts?"

"It was common," replied the girl, "for our ancestors in the vague and foggy way in which they used the terms 'nation' and 'national' to speak of Great Britain as rich. But it was only her capitalists, some scores of thousands of individuals among some forty million people, who were rich. These indeed had incredible accumulations, but the remainder of the forty millions--the whole people, in fact, save an infinitesimal fraction--were sunk in poverty. It is said that England had a larger and more hopeless pauper problem than any other civilized nation. The condition of her working masses was not only more wretched than that of many contemporary people, but was worse, as proved by the most careful economic comparisons, than it had been in the fifteenth century, before foreign trade was thought of. People do not emigrate from a land where they are well off, but the British people, driven out by want, had found the frozen Canadas and the torrid zone more hospitable than their native land. As an illustration of the fact that the welfare of the working masses was in no way improved when the capitalists of a country commanded foreign markets, it is interesting to note the fact that the British emigrant was able to make a better living in English colonies whose markets were wholly dominated by English capitalists than he had been at home as the employee of those capitalists. We shall remember also that Malthus, with his doctrine that it was the best thing that could happen to a workingman not to be born, was an Englishman, and based his conclusions very logically upon his observation of the conditions of life for the masses in that country which had been more successful than any other in any age in monopolizing the foreign markets of the world by its commerce.

"Or," the lad went on, "take Belgium, that old Flemish land of merchants, where foreign trade had been longer and more steadily used than in any other European country. In the latter part of the nineteenth century the mass of the Belgian people, the hardest-worked population in the world, was said to have been, as a rule, without adequate food--to be undergoing, in short, a process of slow starvation. They, like the people of England and the people of Germany, are proved, by statistical calculations upon the subject that have come down to us, to have been economically very much better off during the fifteenth and early part of the sixteenth century, when foreign trade was hardly known, than they were in the nineteenth. There was a possibility before foreign trade for profit began that a population might obtain some share of the richness of a bountiful land just from the lack of any outlet for it. But with the beginning of foreign commerce, under the profit system, that possibility vanished. Thenceforth everything good or desirable, above what might serve for the barest subsistence of labor, was systematically and exhaustively gathered up by the capitalists, to be exchanged in foreign lands for gold and gems, silks, velvets, and ostrich plumes for the rich. As Goldsmith had it:


"Around the world each needful product flies
For all the luxuries the world supplies."


"To what has the struggle of the nations for foreign markets in the nineteenth century been aptly compared?"

"To a contest between galleys manned by slaves, whose owners were racing for a prize."

"In such a race, which crew was likely to fare worse, that of the winning or the losing galley?"

"That of the winning galley, by all means," replied the girl, "for the supposition is that, other conditions being equal, it was the more sorely scourged."

"Just so," said the teacher, "and on the same principle, when the capitalists of two countries contended for the supplying of a foreign market it was the workers subject to the successful group of capitalists who were most to be pitied, for, other conditions being equal, they were likely to be those whose wages had been cut lowest and whose general condition was most degraded."

"But tell us," said the teacher, "were there not instances of a general poverty in countries having no foreign trade as great as prevailed in the countries you have mentioned?"

"Dear me, yes!" replied the girl. "I have not meant to convey any impression that because the tender mercies of the foreign capitalists were cruel, those of the domestic capitalist were any less so. The comparison is merely between the operation of the profit system on a larger or smaller scale. So long as the profit system was retained, it would be all one in the end, whether you built a wall around a country and left the people to be exploited exclusively by home capitalists, or threw the wall down and let in the foreigners."


CHAPTER XXVII.


HOSTILITY OF A SYSTEM OF VESTED INTERESTS TO IMPROVEMENT.



"Now, Florence," said the teacher, "with your assistance we will take up the closing topic in our consideration of the economic system of our fathers--namely, its hostility to invention and improvement. It has been our painful duty to point out numerous respects in which our respected ancestors were strangely blind to the true character and effects of their economic institutions, but no instance perhaps is more striking than this. Far from seeing the necessary antagonism between private capitalism and the march of improvement which is so plain to us, they appear to have sincerely believed that their system was peculiarly favorable to the progress of invention, and that its advantage in this respect was so great as to be an important set-off to its admitted ethical defects. Here there is decidedly a broad difference in opinion, but fortunately the facts are so well authenticated that we shall have no difficulty in concluding which view is correct.

"The subject divides itself into two branches: First, the natural antagonism of the old system to economic changes; and, second, the effect of the profit principle to minimize if not wholly to nullify the benefit of such economic improvements as were able to overcome that antagonism so far as to get themselves introduced.--Now, Florence, tell us what there was about the old economic system, the system of private capitalism, which made it constitutionally opposed to changes in methods."

"It was," replied the girl, "the fact that it consisted of independent vested interests without any principle of coordination or combination, the result being that the economic welfare of every individual or group was wholly dependent upon his or its particular vested interest without regard to others or to the welfare of the whole body."

"Please bring out your meaning by comparing our modern system in the respect you speak of with private capitalism."

"Our system is a strictly integrated one--that is to say, no one has any economic interest in any part or function of the economic organization which is distinct from his interest in every other part and function. His only interest is in the greatest possible output of the whole. We have our several occupations, but only that we may work the more efficiently for the common fund. We may become very enthusiastic about our special pursuit, but as a matter of sentiment only, for our economic interests are no more dependent upon our special occupation than upon any other. We share equally in the total product, whatever it is."

"How does the integrated character of the economic system affect our attitude toward improvements or inventions of any sort in economic processes?"

"We welcome them with eagerness. Why should we not? Any improvement of this sort must necessarily redound to the advantage of every one in the nation and to every one's advantage equally. If the occupation affected by the invention happens to be our particular employment we lose nothing, though it should make that occupation wholly superfluous. We might in that case feel a little sentimental regret over the passing away of old habits, but that is all. No one's substantial interests are in any way more identified with one pursuit than another. All are in the service of the nation, and it is the business and interest of the nation to see that every one is provided with other work as soon as his former occupation becomes unnecessary to the general weal, and under no circumstances is his rate of maintenance affected. From its first production every improvement in economic processes is therefore an unalloyed blessing to all. The inventor comes bringing a gift of greater wealth or leisure in his hand for every one on earth, and it is no wonder that the people's gratitude makes his reward the most enviable to be won by a public benefactor."

"Now, Florence, tell us in what way the multitude of distinct vested interests which made up private capitalism operated to produce an antagonism toward economic inventions and improvements."

HOW PROGRESS ANTAGONIZED VESTED INTERESTS.

"As I have said," replied the girl, "everybody's interest was wholly confined to and bound up with the particular occupation he was engaged in. If he was a capitalist, his capital was embarked in it; if he was an artisan, his capital was the knowledge of some particular craft or part of a craft, and he depended for his livelihood on the demand for the sort of work he had learned how to do. Neither as capitalist or artisan, as employer or employee, had he any economic interest or dependence outside of or larger than his special business. Now, the effect of any new idea, invention, or discovery for economic application is to dispense more or less completely with the process formerly used in that department, and so far to destroy the economic basis of the occupations connected with that business. Under our system, as I have said, that means no loss to anybody, but simply a shifting of workers, with a net gain in wealth or leisure to all; but then it meant ruin to those involved in the change. The capitalist lost his capital, his plant, his investments more or less totally, and the workingmen lost their means of livelihood and were thrown on what you well called the cold charity of the world--a charity usually well below zero; and this loss without any rebate or compensation whatever from the public at large on account of any general benefit that might be received from the invention. It

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