The sociological viewpoint pervades all Marx's work--Commodities defined--Use-values and economic values--Exchange of commodities through the medium of money--The labor theory of value in its crude form--Marx and Benjamin Franklin--Some notable statements by the classic economists--Scientific development of the labor theory of value by Marx--"Unique values"--Price and value--Money as a price-expression and as a commodity--The theory of supply and demand as determinants of value--The "Austrian" theory of final utility as the determinant of value--The Marxian theory not necessarily exclusive of the theory of final, or marginal, utility--Labor-power as a commodity--Wages, its price, determined as the prices of all other commodities are--Wherein labor-power differs from all other commodities--"Surplus Value": why Marx used the term--The theory stated--The division of surplus value--No moral judgment involved in the theory--Other theories of the source of capitalist income--Wherein they fail to solve the problem--Fundamental importance of the doctrine 235 CHAPTER IX OUTLINES OF THE SOCIALIST STATE Detailed specifications impossible--Principles which must characterize it--Man's egoism and sociability--Socialism and Individualism not opposites--The idea of the Socialist state as a huge bureaucracy--Mr. Anstey's picture and Herbert Spencer's fear--Justification of this view in Socialist propaganda literature--Means of production, individual and social--Professor Goldwin Smith's question--The Socialist ideal of individual liberty--Absolute personal liberty not possible--Spencer's abandonment of _laissez faire_--Political organization of Socialist regime must be democratic--Automatic democracy unattainable--The need of eternal vigilance--Delegated authority--The rights of the individual and of society briefly stated--Private property and industry not incompatible with Socialism--Public ownership not the end, but only a means to an end--Economic structure of the Socialist state--Efficiency the test for private or public industry--The application of democratic principles to industry--The right to labor guaranteed by society, and the duty to labor enforced by society--Free choice of labor--Mode of remuneration--Who will do the dirty work?--The "abolition of wages"--Approximate equality attainable by free play of economic law under Socialism--Hoarded wealth--Inheritance--The security of society against the improvidence of its members--The administration of justice--Education completely free--The question of religious education--The state as protector of the child--Strict neutrality upon religious matters--A maximum of personal liberty with a minimum of restraint 277 CHAPTER X THE MEANS OF REALIZATION