Well, first, before one answers that, let us ask what it is exactly that is grinding the middle class in this way. Is it a process we can stop? Can we direct the millstones? If we can, ought we to do so? And if we cannot, or decide that it isn’t worth while, then what can we do to mitigate this cruelty of slowly impoverishing and taxing out of existence a class that was once the backbone of the community? It is not mere humanity dictates this much, it is a question that affects the State as a whole. It must be extremely bad for the spirit of the nation and for our national future that its middle mass should be in a state of increasing financial worry and stress, irritated, depressed, and broken in courage. One effect is manifest in our British politics now. Each fresh election turns upon expenditure more evidently than the last, and the promise to reduce taxation or lower the rates overrides more and more certainly any other consideration. What are Empire or Education to men who feel themselves drifting helplessly into debt? What chance has any constructive scheme with an electorate of men who are being slowly submerged in an economic bog?
The process that has brought the middle class into these troubles is a complex one, but the essential thing about it seems to be this, that there is a change of scale going on in most human affairs, a substitution of big organizations for detached individual effort almost everywhere. A hundred and fifty years ago or so the only very rich people in the community were a handful of great landowners and a few bankers; the rest of the world’s business was being done by small prosperous independent men. The labourers were often very poor and wretched, ill clad, bootless, badly housed and short of food, but there was nevertheless a great deal of middle-class comfort and prosperity. The country was covered with flourishing farmers, every country town was a little world in itself, with busy tradespeople and professional men; manufacturing was still done mainly by small people employing a few hands, master and apprentice working together; in every town you found a private school or so, an independent doctor and the like, doing well in a mediocre, comfortable fashion. All the carrying trade was in the hands of small independent carriers; the shipping was held by hundreds of small shipowners. And London itself was only a larger country town. It was, in effect, a middle-class world ruled over by aristocrats; the millstones had as yet scarcely stirred.
Then machinery came into the lives of men, and steam power, and there began that change of scale which is going on still to-day, making an ever-widening separation of master and man and an ever-enlarging organization of industry and social method. Its most striking manifestation was at first the substitution of organized manufacture in factories for the half-domestic hand-industrialism of the earlier period; the growth of the fortunes of some of the merchants and manufacturers to dimensions comparable with the wealth of the great landowners, and the sinking of the rest of their class towards the status of wage-earners. The development of joint-stock enterprise arose concurrently with this to create a new sort of partnership capable of handling far greater concerns than any single wealthy person, as wealth was measured by the old scale, could do. There followed a great development of transit, culminating for a time in the coming of the railways and steamships, which abolished the isolation of the old towns and brought men at the remotest quarters of the earth into business competition. Big towns of the modern type, with half-a-million inhabitants or more, grew up rapidly all over Europe and America. For the European big towns are as modern as New York, and the East End and south side of London scarcely older than Chicago. Shopkeeping, like manufactures, began to concentrate in large establishments, and big wholesale distribution to replace individual buying and selling. As the need for public education under the changing conditions of life grew more and more urgent, the individual enterprise of this school-master and that gave place to the organized effort of such giant societies as (in Britain) the old National School Society and the British School Society, and at last to State education. And one after another the old prosperous middle-class callings fell under the stress of the new development.
The process still goes on, and there can be little doubt of the ultimate issue. The old small manufacturers are either ruined or driven into sweating and the slums; the old coaching innkeeper and common carrier have been impoverished or altogether superseded by the railways and big carrier companies; the once flourishing shopkeeper lives to-day on the mere remnants of the trade that great distributing stores or the branches of great companies have left him. Tea companies, provision-dealing companies, tobacconist companies, make the position of the old-established private shop unstable and the chances of the new beginner hopeless. Railways and tramways take the custom more and more effectually past the door of the small draper and outfitter to the well-stocked establishments at the centre of things; telephone and telegraph assist that shopping at the centre more and more. The small “middle-class” school-master finds himself beaten by revived endowed schools and by new public endowments; the small doctor, the local dentist, find Harley Street always nearer to them and practitioners in motor-cars from the great centres playing havoc with their practices. And while the small men are more and more distressed, the great organizations of trade, of production, of public science, continue to grow and coalesce, until at last they grow into national or even world trusts, or into publicly-owned monopolies. In America slaughtering and selling meat has grown into a trust, steel and iron are trustified, mineral oil is all gathered into a few hands. All through the trades and professions and sciences and all over the world the big eats up the small, the new enlarged scale replaces the old.
And this is equally true, though it is only now beginning to be recognized, of the securities of that other section of the middle class, the section which lives upon invested money. There, too, big eats little. There, too, the small man is more and more manifestly at the mercy of the large organization. It was a pleasant illusion of the Victorian time that one put one’s hundred pounds or thousand pounds “into something,” beside the rich man’s tens of thousands, and drew one’s secure and satisfying dividends. The intelligent reader of Mr. Lawson’s Frenzied Finance or of the bankruptcy proceedings of Mr. Hooley realizes this idyll is scarcely true to nature. Through the seas and shallows of investment flow great tides and depressions, on which the big fortunes ride to harbour while the little accumulations, capsized and swamped, quiver down to the bottom. It becomes more and more true that the small man saves his money for the rich man’s pocket. Only by drastic State intervention is a certain measure of safety secured for insurance, and in America recently we have had the spectacle of the people’s insurance-money used as a till by the rich financiers.
And when the middle-class man turns in his desperation from the advance of the big competitor who is consuming him, as a big codfish eats its little brother, to the State, he meets a tax-paper; he sees as the State’s most immediate aspect the rate-collector and inexorable demands. The burthen of taxation certainly falls upon him, and it falls upon him because he is collectively the weakest class that possesses any property to be taxed. Below him are classes either too poor to tax or too politically effective to stand taxation. Above him is the class which owns a large part of the property in the world; but it also owns the newspapers and periodicals that are necessary for an adequate discussion of social justice, and it finds it cheaper to pay a voluntary tax to the hoardings at election time than to take over the small man’s burdens. He rolls about between these two parties, antagonized first to one and then the other, and altogether helpless and ineffectual. So the millstones grind, and so it would seem they will continue to grind until there is nothing between them; until organized property in the hands of the few on the one hand and the proletariat on the other grind face to face. So, at least, Karl Marx taught in Das Kapital.
But when one says the middle class will disappear, one means that it will disappear as a class. Its individuals and its children will survive, and the whole process is not nearly so fatalistic as the Marxists would have us believe. The new great organizations that are replacing the little private enterprises of the world before machinery are not all private property. There are alternatives in the matter of handling a great business. To the exact nature of these alternatives the middle-class mind needs to direct itself if it is to exert any control whatever over its future. Take the case of the butcher. It is manifestly written on the scroll of destiny that the little private slaughter-house, the little independent butcher’s shop, buying and selling locally, must disappear. The meat will all be slaughtered at some great, conveniently organized centre, and distributed thence to shops that will necessarily be mere agencies for distributing meat. Now, this great slaughtering and distributing business may either be owned by one or a group of owners working it for profit—in which case it will be necessary for the State to employ an unremunerative army of inspectors to see that the business is kept decently clean and honest—or it may be run by the public authority. In the former case the present-day butcher or his son will be a slaughterman or shopkeeper employed by the private owners; in the latter case by the public authority. This is equally true of a milk-seller, of a small manufacturer, of a builder, of a hundred and one other trades. They are bound to be incorporated in a larger organization; they are bound to become salaried men where formerly they were independent men, and it is no good struggling against that. It is doubtful, indeed, whether from the standpoint of welfare it would be worth the middle-class man’s while to struggle against that. But in the case of very many great public services—meat, milk, bread, transit, housing and land administration, education and research, and the public health—it is still an open question whether the big organization is to be publicly owned, publicly controlled, and constantly refreshed by public scrutiny and comment, or whether it is to be privately owned, and conducted solely for the profit of a small group of very rich owners. The alternatives are Plutocracy or Socialism, and between these the middle-class man remains weakly undecided and ineffectual, lending no weight to and getting small consideration therefore from either side. He remains so because he has not grasped the real nature of his problem, because he clings in the face of overwhelming fate to the belief that in some way the wheels of change may be arrested and his present method of living preserved.
I think, if he could shake himself free from that impossible conservatism he would realize that his interests lie with the interests of the intelligent working-class man—that is to say, in the direction of Socialism rather than in the direction of capitalistic competition; that the best use he can make of such educational and social advantages as still remain for him is to become the willing leader instead of the panic-fierce antagonist of the Socialist movement. His place, I hold, is to forward the development of that State and municipal machinery the Socialist foreshadows, and to secure for himself and his sons and daughters an adequate position and voice in the administration. Instead of struggling to diminish that burthen of public expenditure which educates and houses, conveys and protects him and his children, he ought rather to increase it joyfully, while at the same time working manfully to transfer its pressure to the broad shoulders of those very rich people who have hitherto evaded their legitimate share of it. The other course is to continue his present policy of obstinate resistance to the extension of public property and public services. In which case these things will necessarily become that basis of monopolistic property on which the coming plutocracy will establish itself. The middle-class man will be taxed and competed out of independence just the same, and he will become a salaried officer just the same, but with a different sort of master and under different social conditions according as one or other of these alternatives prevails.
Which is the better master—the democratic State or a “combine” of millionaires? Which will give the best social atmosphere for one’s children to breathe—a Plutocracy or a Socialism? That is the real question to which the middle-class man should address himself.
No doubt to many minds a Plutocracy presents many attractions. In the works of Thomas Love Peacock, and still more clearly in the works of Mr. W. H. Mallock, you will find an agreeable rendering of that conception. The bulk of the people will be organized out of sight in a state of industrious and productive congestion, and a wealthy, leisurely, and refined minority will live in spacious homes, with excellent museums, libraries, and all the equipments of culture; will go to town, concentrate in Paris, London, and Rome, and travel about the world. It is to these large, luxurious, powerful lives that the idealist naturally turns. Their motor-cars, their aeroplanes, their steam yachts will awaken terror and respect in every corner of the globe. Their handsome doings will fill the papers. They will patronize the arts and literature, while at the same time mellowing them by eliminating that too urgent insistence upon contemporary fact which makes so much of what is done to-day harsh and displeasing. The middle-class tradition will be continued by a class of stewards, tenants, managers, and foremen, secretaries and the like, respected and respectful. The writer, the artist, will lead lives of comfortable dependence, a link between class and class, the lowest of the rich man’s guests, the highest of his servants. As for the masses, they will be fed with a sort of careless vigour and considerable economy from the Chicago stockyards, and by agricultural produce trusts, big breweries, fresh-water companies, and the like; they will be organized industrially and carefully controlled. Their spiritual needs will be provided for by churches endowed by the wealthy, their physical distresses alleviated by the hope of getting charitable aid, their lives made bright and adventurous by the crumbs of sport that fall from the rich man’s table. They will crowd to see the motor-car races, the aeroplane competitions. It will be a world rich in contrasts and not without its gleam of pure adventure. Every bright young fellow of capacity will have the hope of catching the eye of some powerful personage, of being advanced to some high position of trust, of even ending his days as a partner, a subordinate assistant plutocrat. Or he may win a quite agreeable position by literary or artistic merit. A pretty girl, a clever woman of the middle class would have before her even more brilliant and romantic possibilities.