Capitalism; Imperialism; Saving and investment; Socialism
Rodbertus digs deeper than v. Kirchmann. He looks for the roots of evil
in the very foundations of social organisation and declares bitter war
on the predominant Free Trade school--not against a system of
unrestricted commodity circulation or the freedom of trade which he
fully accepts, but against the Manchester doctrine of _laissez-faire_
within the internal social relations of economy. At that time, after the
period of storm and stress of classical economics, a system of
unscrupulous apologetics was already in full sway which found its most
perfect expression in the 'doctrine of harmony' of M. Frédéric Bastiat,
the famous vulgarian and idol of all Philistines, and quite soon the
various Schultzes were to flourish as commonplace, German imitations of
the French prophet of harmony. Rodbertus' strictures are aimed at these
unscrupulous 'peddlers of free trade'. In his first _Letter on Social
Problems_[237] he exclaims:
'Because of their paltry incomes, five-sixths of the population are not
only deprived of most of the benefits of civilisation, but are in
constant danger of the most terrible outbreaks of real distress to which
they sometimes succumb. Yet they are the creators of all the wealth of
the society. Their labours begin at dawn and end at dusk, continuing
even after night has fallen--but no exertion can change this fate; they
cannot raise their income, and only lose that little leisure which ought
to remain nowadays for the improvement of their minds. Hitherto it might
have seemed as if all this suffering were necessary to the progress of
civilisation, but now that a series of the most wonderful discoveries
and inventions have increased human labour power more than a
hundredfold, new prospects of changing these grim conditions are
suddenly revealed. As a result, the wealth and assets of a nation
increase at a growing rate as compared with the population. Could
anything be more natural, I ask, or more justly demanded, than that this
increase should also somehow benefit the creators of this old and new
wealth? that their incomes should be raised or their working-hours
shortened, or that they might join in increasing numbers the ranks of
the lucky ones, privileged to reap the fruits of labour? Yet state
economy, or better, national economy has only achieved the opposite
result. Increasing poverty of these classes goes together with
increasing wealth of the nation, there is even need of special
legislation, lest the working day become longer, and finally, the
working classes swell in number out of proportion with the others. Even
that is not enough! The hundredfold increase of labour efficiency which
was powerless to relieve five-sixths of the population, even threatens
periodically the remaining sixth of the nation and thus society as a
whole.'
Public-domain text, read in full here on John Shaqi.
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