Some questions about Socialism.
(Reply to E. S, Dorset.)
(1) Under Socialism there would be no persons living on incomes derived from the private ownership of property, whether in the form of rent, interest or profit. The landlord, like the owner of shares, derives his income from the wealth produced by the working class.
(2) You ask whether there would be taxation under Socialism, and if not, how would “social services” be carried on. Taxation is only necessary in a social system in which there is a privileged class and a subject class. Taxation in a modern capitalist country exists in order to enable the Government to maintain armed and civil forces, pay interest on money borrowed from investors, and meet the cost of so-called “social services," i.e., old-age pensions, health and unemployment insurance, etc. The latter would, of course, be unnecessary under Socialism, for each person would have free access to the necessaries of life, and the old and infirm would, therefore, not need private or State charity. Under Socialism all services would, in the real sense, be “social services,” for all able-bodied persons would co-operate in the production of wealth, to be consumed by the whole population, without distinction of class. There would be no investors.
(3) When goods are produced for the purpose of being freely available to all the members of society, there would be no place for a money system. A money system can exist only where there is private ownership of the means of production and of the products.
(4) The danger of war can only be removed by abolishing the underlying causes. The underlying cause of war in the modern world is capitalist economic rivalry. When goods are produced for use and not for sale at a profit, the incentive to seek foreign markets or areas of foreign investment will disappear, and with it the danger of war between rival groups of capitalist nations. Those who misunderstand the nature of modern wars, and regard war as if it were a method of preventing individuals from creating disorder, doubt the possibility of abolishing war by abolishing private ownership. Society would, under any system, have to take steps, if necessary, to prevent individuals or minorities from acting contrary to the basic needs of society, but action of that kind, when private ownership is abolished, would not bear any resemblance to modern war. Modern war is not a process of suppressing law-breakers, but a clash of interests between rival capitalist groups. Neither in its objects nor in its methods can it be compared with such suppression of anti-social conduct by individuals.
(5) Workers would not be “graded as regards wages," for there will be no wages. Wages are the price paid by the capitalist when he buys the labour-power of the workers. Under Socialism there will be neither a capitalist class nor a working class, but all will be simply members of society.
You ask if a man with a technical training will be paid more than a man without such training. Under capitalism the employer has to pay wages according to the requirements of each particular kind of worker. This is based ultimately on the cost of producing each kind of labour, i.e., the food, clothing, shelter, etc., of the workers and the cost of training. Under Socialism, if society needs a certain number of men and women trained for particular kinds of work it will see to it that the desired number are trained to meet the needs of society. No question of paying higher or lower wages, or any wages, can arise.
(6) You ask if the owners of industrial concerns will be compensated. Once you grasp clearly what Socialism is you will see that it is not a question of whether compensation is, or is not, desirable. Compensation is impossible.
Under capitalism the one basic feature which distinguishes capitalists from workers is that the capitalists possess the privilege of living without working, that is, of living on the wealth produced by the workers.
Socialism is impossible until that privilege is taken away, and having taken it away there remains no conceivable method by which the former capitalists could be compensated. They must either retain their privilege—which means capitalism, or they must lose it in order to make Socialism possible.
On the other hand, the loss of capitalist privilege will usher in a system of society in which all members of society—including the ex-capitalists—will have a degree of comfort and security, and possibilities of leading a full life. The ex-capitalists will possess the same opportunities as everybody else, more that that they cannot have.
Ed. Comm.
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