The influence of Christian socialism strengthened the experiment of the Rochdale weavers who in 1844 had organized a consumers’ co-operative society. The concept of consumers’ co-operation received its original impetus from the thought and practice of Robert Owen, achieved a measurable degree of concreteness under the efforts of the Rochdale weavers, and through Maurice and Kingsley won the assistance of Christianity.
In Germany, Rodbertus, Lassalle, Marx and Engels molded the thinking of socialists about the nature of human society. Rodbertus (1805–1875), the son of a university professor, was a quiet, deep thinker about social processes. According to his analysis of social development, three stages may be pointed out. The first was marked by slavery, or by private property in human beings. The second state is an indirect form of the first, namely, one of private property in land and capital. Through this type of ownership the economically fortunate or shrewd are able to exercise widespread power over the unfortunate and the uneducated. In the third state, toward which society is trending, the concept of service will rule, and private property as a dominant concept will be compelled to take a thoroughly subordinate place in human activities. The ultimate goal, according to Rodbertus, is a world communist society, with land and capital as national property, and with labor rewarded according to its productiveness.[XIV-2]
Rodbertus denied the validity of the wages fund theory and argued that wages are not paid by capital; it is that part of the productive earnings of labor which labor receives. His fundamental thesis is that labor is the source and measure of all value. He advocated an evolutionary procedure whereby the state should pass legislation that would guarantee just returns to labor. This form of state socialism is to be gradually developed, until a scientific socialism is reached with its emphasis upon a government of labor, for labor, and by labor.
The founder of Social Democracy in Germany, Ferdinand Lassalle (1825–1864), wrote two significant treatises, the Bastiat-Schulze and the Working Men’s Programme. Lassalle believed that natural conditions are productive of misery and vice, and that it is the chief business of the state to extricate men from this thraldom. The state should provide means for lifting the laboring man to a level of industrial freedom.
Lassalle objected to the theory known as the iron law of wages. He protested against the smallness of the share of his earnings which the laborer really receives. He advocated the establishment of productive associations wherein labor might perform the double function of workman and capitalist. In order that these productive associations might be started, the state should advance funds. After the productive associations have secured momentum they will continue by virtue of their own strength. Ultimately, industry will be conducted exclusively through productive associations; both industrial and social democracy will finally rule in political life. Lassalle became the founder of the Social Democratic party in Germany. Lassalle boldly denounced the reactionary classes that were in political power in his time and led the workers in a movement to overthrow the existing social order.[XIV-3]
The name of Karl Marx (1818–1883) is supreme on the list of socialists. Marx was born in Germany of Jewish parents, and educated at the universities of Bonn and Berlin. He became a journalist, but the paper which he edited was considered too liberal and was suppressed. Marx went to Paris in 1842, where he continued editorial work. At this time he was influenced by French socialism and its leader, Proudhon. In 1845, he was expelled from Paris at the request of the Prussian government. He went to Brussels. In the meantime a deep friendship with Friedrich Engels (1820–1895) had been established.
In 1847, Marx and Engels issued the Communist Manifesto.[XIV-4] This radical document was circulated widely and became extensively accepted by social revolutionists. Its doctrines were:
1. Abolition of property in lands; rents to be used for public purposes.
2. Abolition of all rights of inheritance.
3. Progressive income tax.