Chapter XIII: Private Capital Stolen From the Social Fund

“I observe,” pursued the doctor, “that Edith is getting very impatient with these dry disquisitions, and thinks it high time we passed from wealth in the abstract to wealth in the concrete, as illustrated by the contents of your safe. I will delay the company only while I say a very few words more; but really this question of the restoration of your million, raised half in jest as it was, so vitally touches the central and fundamental principle of our social order that I want to give you at least an outline idea of the modern ethics of wealth distribution.

“The essential difference between the new and the old point of view you fully possess by this time. The old ethics conceived of the question of what a man might rightfully possess as one which began and ended with the relation of individuals to things. Things have no rights as against moral beings, and there was no reason, therefore, in the nature of the case as thus stated, why individuals should not acquire an unlimited ownership of things so far as their abilities permitted. But this view absolutely ignored the social consequences which result from an unequal distribution of material things in a world where everybody absolutely depends for life and all its uses on their share of those things. That is to say, the old so-called ethics of property absolutely overlooked the whole ethical side of the subject--namely, its bearing on human relations. It is precisely this consideration which furnishes the whole basis of the modern ethics of property. All human beings are equal in rights and dignity, and only such a system of wealth distribution can therefore be defensible as respects and secures those equalities. But while this is the principle which you will hear most generally stated as the moral ground of our economic equality, there is another quite sufficient and wholly different ground on which, even if the rights of life and liberty were not involved, we should yet maintain that equal sharing of the total product of industry was the only just plan, and that any other was robbery.

“The main factor in the production of wealth among civilized men is the social organism, the machinery of associated labor and exchange by which hundreds of millions of individuals provide the demand for one another’s product and mutually complement one another’s labors, thereby making the productive and distributive systems of a nation and of the world one great machine. This was true even under private capitalism, despite the prodigious waste and friction of its methods; but of course it is a far more important truth now when the machinery of co-operation runs with absolute smoothness and every ounce of energy is utilized to the utmost effect. The element in the total industrial product which is due to the social organism is represented by the difference between the value of what one man produces as a worker in connection with the social organization and what he could produce in a condition of isolation. Working in concert with his fellows by aid of the social organism, he and they produce enough to support all in the highest luxury and refinement. Toiling in isolation, human experience has proved that he would be fortunate if he could at the utmost produce enough to keep himself alive. It is estimated, I believe, that the average daily product of a worker in America to-day is some fifty dollars. The product of the same man working in isolation would probably be highly estimated on the same basis of calculation if put at a quarter of a dollar. Now tell me, Julian, to whom belongs the social organism, this vast machinery of human association, which enhances some two hundredfold the product of every one’s labor?”

“Manifestly,” I replied, “it can belong to no one in particular, but to nothing less than society collectively. Society collectively can be the only heir to the social inheritance of intellect and discovery, and it is society collectively which furnishes the continuous daily concourse by which alone that inheritance is made effective.”

“Exactly so. The social organism, with all that it is and all it makes possible, is the indivisible inheritance of all in common. To whom, then, properly belongs that two hundredfold enhancement of the value of every one’s labor which is owing to the social organism?”

“Manifestly to society collectively--to the general fund.”

“Previous to the great Revolution,” pursued the doctor. “Although there seems to have been a vague idea of some such social fund as this, which belonged to society collectively, there was no clear conception of its vastness, and no custodian of it, or possible provision to see that it was collected and applied for the common use. A public organization of industry, a nationalized economic system, was necessary before the social fund could be properly protected and administered. Until then it must needs be the subject of universal plunder and embezzlement. The social machinery was seized upon by adventurers and made a means of enriching themselves by collecting tribute from the people to whom it belonged and whom it should have enriched. It would be one way of describing the effect of the Revolution to say that it was only the taking possession by the people collectively of the social machinery which had always belonged to them, thenceforth to be conducted as a public plant, the returns of which were to go to the owners as the equal proprietors and no longer to buccaneers.