This assumed proof is based upon the concept of a “primitive accumulation,” or an original store of wealth, in lands and in movable property, brought about by means of purely economic forces; a doctrine justly derided by Karl Marx as a “fairy tale.” Its scheme of reasoning approximates this:

Somewhere, in some far-stretching, fertile country, a number of free men, of equal status, form a union for mutual protection. Gradually they differentiate into property classes. Those best endowed with strength, wisdom, capacity for saving, industry and caution, slowly acquire a basic amount of real or movable property; while the stupid and less efficient, and those given to carelessness and waste, remain without possessions. The well-to-do lend their productive property to the less well-off in return for tribute, either ground rent or profit, and become thereby continually richer, while the others always remain poor. These differences in possession gradually develop social class distinctions; since everywhere the rich have preference, while they alone have the time and the means to devote to public affairs and to turn the laws administered by them to their own advantage. Thus, in time, there develops a ruling and property-owning estate, and a proletariate, a class without property. The primitive state of free and equal fellows becomes a class-state, by an inherent law of development, because in every conceivable mass of men there are, as may readily be seen, strong and weak, clever and foolish, cautious and wasteful ones.

This seems quite plausible, and it coincides with the experience of our daily life. It is not at all unusual to see an especially gifted member of the lower class rise from his former surroundings, and even attain a leading position in the upper class; or conversely, to see some spendthrift or weaker member of the higher group “lose his class” and drop into the proletariate.

And yet this entire theory is utterly mistaken; it is a “fairy tale,” or it is a class theory used to justify the privileges of the upper classes. The class-state never originated in this fashion, and never could have so originated. History shows that it did not; and economics shows deductively, with a testimony absolute, mathematical and binding, that it could not. A simple problem in elementary arithmetic shows that the assumption of an original accumulation is totally erroneous, and has nothing to do with the development of the class-state.

The proof is as follows: All teachers of natural law, etc., have unanimously declared that the differentiation into income-receiving classes and propertyless classes can only take place when all fertile lands have been occupied. For so long as man has ample opportunity to take up unoccupied land, “no one,” says Turgot, “would think of entering the service of another;” we may add, “at least for wages, which are not apt to be higher than the earnings of an independent peasant working an unmortgaged and sufficiently large property;” while mortgaging is not possible as long as land is yet free for the working or taking, as free as air and water. Matter that is obtainable for the taking has no value that enables it to be pledged, since no one loans on things that can be had for nothing.

The philosophers of natural law, then, assumed that complete occupancy of the ground must have occurred quite early, because of the natural increase of an originally small population. They were under the impression that at their time, in the eighteenth century, it had taken place many centuries previous, and they naïvely deduced the existing class aggroupment from the assumed conditions of that long-past point of time. It never entered their heads to work out their problem; and with few exceptions their error has been copied by sociologists, historians and economists. It is only quite recently that my figures were worked out, and they are truly astounding.[A]

[A] Franz Oppenheimer, Theorie der Reinen und Politischen Œkonomie. Berlin, 1912.—Translator.

We can determine with approximate accuracy the amount of land of average fertility in the temperate zone, and also what amount is sufficient to enable a family of peasants to exist comfortably, or how much such a family can work with its own forces, without engaging outside help or permanent farm servants. At the time of the migration of the barbarians (350 to 750 A. D.), the lot of each able-bodied man was about thirty morgen (equal to twenty acres) on average lands, on very good ground only ten to fifteen morgen (equal to seven or ten acres), four morgen being equal to one hectare. Of this land, at least a third, and sometimes a half, was left uncultivated each year. The remainder of the fifteen to twenty morgen sufficed to feed and fatten into giants the immense families of these child-producing Germans, and this in spite of the primitive technique, whereby at least half the productive capacity of a day was lost. Let us assume that, in these modern times, thirty morgen (equal to twenty acres) for the average peasant suffices to support a family. We have then assumed a block of land sufficiently large to meet any objection. Modern Germany, populated as it is, contains an agricultural area of thirty-four million hectares (equal to eighty-four million, fifteen thousand, four hundred and eighty acres). The agricultural population, including farm laborers and their families, amounts to seventeen million; so that, assuming five persons to a family and an equal division of the farm lands, each family would have ten hectares (equal to twenty-five acres). In other words, not even in the Germany of our own day would the point have been reached where, according to the theories of the adherents of natural law, differentiation into classes would begin.