This transformation was wrought by the development of machinery. It was impossible for every individual worker to own a large machine, and so some men became toolless wage laborers employed by the owners of machinery. This is the beginning of the present labor problem and here arises the struggle in the world of ideas between the philosophy of Individualism and that of Socialism. Let us examine the vital change which had taken place even before we reach the middle of the last century. Now, one man uses the tools, but another owns them and appropriates the result. And this is the economic foundation of the class war between the exploited wage worker and the exploiting capitalist. But the individualist theories proper to the 18th century, and its mode of wealth production, passed over into the 19th where their economic justification had ceased. As the fortunate individual owners of machinery found themselves growing rich at a great rate apart from their own individual efforts, they became enthusiastic supporters of “Individualism” and eventually founded the “Manchester” school of politics, which had Herbert Spencer as its chief mouth-piece and Henry George as a somewhat belated trumpeter. In this heyday of Individualism the “rate of profit” was at its highest, one Lancashire cotton spinner boasting of one thousand per cent. But the social hell in which the English working class of this period lived is without parallel in modern times. Its system of child labor, as recorded in the government blue books as well as already shown by Owen, was indescribably horrible, but the manufacturers were opposed to “government interference” and the individualist philosophy and its bogey of “paternalism” was their craven plea. With the grouping of the workers in factories production became socialized, and now came this contradiction, production was social while ownership and appropriation were individual. The Socialists of that period rightly maintained that society should either go back in production to the individual form so as to be in harmony with the existing individual form of ownership and appropriation, or it should adopt social ownership and social appropriation to harmonize with the already existing social production. But the wheel of history never revolves backward, and the latter solution is destined ultimately to prevail. Social evolution has already carried us far in that direction. With the organization of capital individual ownership disappeared and class ownership has taken its place. The struggle of the 20th century is not a struggle between individuals, it is a struggle between classes, and so Individualism has lost its meaning--it is defunct.