That the Hegelian system did not solve the problem it propounded is here immaterial. Its epoch-making merit was that it propounded the problem. This problem is one that no single individual will ever be able to solve. Although Hegel was—with Saint Simon—the most encyclopædic mind of his time, yet he was limited, first, by the necessarily limited extent of his own knowledge, and, second, by the limited extent and depth of the knowledge and conceptions of his age. To these limits a third must be added. Hegel was an idealist. To him the thoughts within his brain were not the more or less abstract pictures of actual things and processes, but, conversely, things and their evolution were only the realized pictures of the "Idea," existing somewhere from eternity before the world was. This way of thinking turned everything upside down, and completely reversed the actual connection of things in the world. Correctly and ingeniously as many individual groups of facts were grasped by Hegel, yet, for the reasons just given, there is much that is botched, artificial, labored, in a word, wrong in point of detail. The Hegelian system, in itself, was a colossal miscarriage—but it was also the last of its kind. It was suffering, in fact, from an internal and incurable contradiction. Upon the one hand, its essential proposition was the conception that human history is a process of evolution, which, by its very nature, cannot find its intellectual final term in the discovery of any so-called absolute truth. But, on the other hand, it laid claim to being the very essence of this absolute truth. A system of natural and historical knowledge, embracing everything, and final for all time, is a contradiction to the fundamental law of dialectic reasoning. This law, indeed, by no means excludes, but, on the contrary, includes the idea that the systematic knowledge of the external universe can make giant strides from age to age.
The perception of the fundamental contradiction in German idealism led necessarily back to materialism, but nota bene, not to the simply metaphysical, exclusively mechanical materialism of the eighteenth century. Old materialism looked upon all previous history as a crude heap of irrationality and violence; modern materialism sees in it the process of evolution of humanity, and aims at discovering the laws thereof. With the French of the eighteenth century, and even with Hegel, the conception obtained of Nature as a whole, moving in narrow circles, and forever immutable, with its eternal celestial bodies, as Newton, and unalterable organic species, as Linnæus, taught. Modern materialism embraces the more recent discoveries of natural science, according to which Nature also has its history in time, the celestial bodies, like the organic species that, under favorable conditions, people them, being born and perishing. And even if Nature, as a whole, must still be said to move in recurrent cycles, these cycles assume infinitely larger dimensions. In both aspects, modern materialism is essentially dialectic, and no longer requires the assistance of that sort of philosophy which, queen-like, pretended to rule the remaining mob of sciences. As soon as each special science is bound to make clear its position in the great totality of things and of our knowledge of things, a special science dealing with this totality is superfluous or unnecessary. That which still survives of all earlier philosophy is the science of thought and its laws—formal logic and dialectics. Everything else is subsumed in the positive science of Nature and history.
Whilst, however, the revolution in the conception of Nature could only be made in proportion to the corresponding positive materials furnished by research, already much earlier certain historical facts had occurred which led to a decisive change in the conception of history. In 1831, the first working-class rising took place in Lyons; between 1838 and 1842, the first national working-class movement, that of the English Chartists, reached its height. The class struggle between proletariat and bourgeoisie came to the front in the history of the most advanced countries in Europe, in proportion to the development, upon the one hand, of modern industry, upon the other, of the newly-acquired political supremacy of the bourgeoisie. Facts more and more strenuously gave the lie to the teachings of bourgeois economy as to the identity of the interests of capital and labor, as to the universal harmony and universal prosperity that would be the consequence of unbridled competition. All these things could no longer be ignored, any more than the French and English Socialism, which was their theoretical, though very imperfect, expression. But the old idealist conception of history, which was not yet dislodged, knew nothing of class struggles based upon economic interests, knew nothing of economic interests; production and all economic relations appeared in it only as incidental, subordinate elements in the "history of civilization."
The new facts made imperative a new examination of all past history. Then it was seen that all past history, with the exception of its primitive stages, was the history of class struggles; that these warring classes of society are always the products of the modes of production and of exchange—in a word, of the economic conditions of their time; that the economic structure of society always furnishes the real basis, starting from which we can alone work out the ultimate explanation of the whole superstructure of juridical and political institutions as well as of the religious, philosophical, and other ideas of a given historical period. Hegel had freed history from metaphysics—he had made it dialectic; but his conception of history was essentially idealistic. But now idealism was driven from its last refuge, the philosophy of history; now a materialistic treatment of history was propounded, and a method found of explaining man's "knowing" by his "being," instead of, as heretofore, his "being" by his "knowing."
From that time forward Socialism was no longer an accidental discovery of this or that ingenious brain, but the necessary outcome of the struggle between two historically developed classes—the proletariat and the bourgeoisie. Its task was no longer to manufacture a system of society as perfect as possible, but to examine the historico-economic succession of events from which these classes and their antagonism had of necessity sprung, and to discover in the economic conditions thus created the means of ending the conflict. But the Socialism of earlier days was as incompatible with this materialistic conception as the conception of Nature of the French materialists was with dialectics and modern natural science. The Socialism of earlier days certainly criticised the existing capitalistic mode of production and its consequences. But it could not explain them, and, therefore, could not get the mastery of them. It could only simply reject them as bad. The more strongly this earlier Socialism denounced the exploitation of the working-class, inevitable under Capitalism, the less able was it clearly to show in what this exploitation consisted and how it arose. But for this it was necessary—(1) to present the capitalistic method of production in its historical connection and its inevitableness during a particular historical period, and therefore, also, to present its inevitable downfall; and (2) to lay bare its essential character, which was still a secret. This was done by the discovery of surplus-value. It was shown that the appropriation of unpaid labor is the basis of the capitalist mode of production and of the exploitation of the worker that occurs under it; that even if the capitalist buys the labor-power of his laborer at its full value as a commodity on the market, he yet extracts more value from it than he paid for; and that in the ultimate analysis this surplus-value forms those sums of value from which are heaped up the constantly increasing masses of capital in the hands of the possessing classes. The genesis of capitalist production and the production of capital were both explained.
These two great discoveries, the materialistic conception of history and the revelation of the secret of capitalistic production through surplus-value, we owe to Marx. With these discoveries Socialism became a science. The next thing was to work out all its details and relations.
III
The materialist conception of history starts from the proposition that the production of the means to support human life and, next to production, the exchange of things produced, is the basis of all social structure; that in every society that has appeared in history, the manner in which wealth is distributed and society divided into classes or orders, is dependent upon what is produced, how it is produced, and how the products are exchanged. From this point of view the final causes of all social changes and political revolutions are to be sought, not in men's brains, not in man's better insight into eternal truth and justice, but in changes in the modes of production and exchange. They are to be sought, not in the philosophy, but in the economics of each particular epoch. The growing perception that existing social institutions are unreasonable and unjust, that reason has become unreason, and right wrong, is only proof that in the modes of production and exchange changes have silently taken place, with which the social order, adapted to earlier economic conditions, is no longer in keeping. From this it also follows that the means of getting rid of the incongruities that have been brought to light, must also be present, in a more or less developed condition, within the changed modes of production themselves. These means are not to be invented by deduction from fundamental principles, but are to be discovered in the stubborn facts of the existing system of production.