The history of socialism has been a history of false prophecies. Socialism started with a sure conviction that under the conditions of modern industry the working class must be driven into worse and worse misery. In reality the development has gone the opposite way. There are endlessly more workingmen with a comfortable income than ever before. The prophets also knew surely that the wealth from manufacturing enterprises would be concentrated with fewer and fewer men, while history has taken the opposite turn and has distributed the shares of the industrial companies into hundreds of thousands of hands. Other prophecies foretold the end of the small farmer, still others the uprooting of the middle class, others gave the date for the great crash; and everything would have come out exactly as the prophets foresaw it, if they had not forgotten to consider many other factors in the social situation which gave to the events a very different turn. But it may be acknowledged that the wrong prophesying was done not only by the socialists, but no less by the spectators. I myself have to confess my guilt. Many years ago when I wrote my German book on “The Americans,” I declared with the ringing voice of the prophet that socialism would never take hold of America. It was so easy to show that its chief principles and fundamental doctrines were directly opposed to the deepest creeds of Americanism and that the whole temper of the population was necessarily averse to the anticapitalistic fancies. The individualistic striving, the faith in rivalry, the fear of centralization, the political liberty, the lack of class barriers which makes it possible for any one to reach the highest economic power, all work against socialism, and all are essential for American democracy. Above all, the whole American life was controlled by the feeling that individual wealth is the measurement of individual success, and even puritanism had an internal affinity to capitalism. Hence socialism could not mean anything but an imported frill which could not be taken seriously by the commonwealth. In later editions of the book I modified my predictions slightly, and to-day I feel almost inclined to withdraw my prophecy entirely.
To be sure, I still think that the deepest meaning of Americanism and of the American mission in the world is farther away from socialism than the spirit of any other nation. And yet—I do not say that I fear, or that I hope, but I believe—socialism has in no other land at present such good chances to become the policy of the state. The country has entered into a career of progressive experiments; the traditional respect for the old constitutional system of checks and balances to the mere will of the crowd has been undermined. The real legislative reign of the masses has just begun and it would seem only natural that such an entirely new movement should be pushed forward by its own momentum. If the genius of America, which was conservative, turns radical, the political machinery here would be more fit than that of any other land to allow the enforcement of socialism. This will not come to-day or to-morrow, but that socialism may suddenly be with us the day after to-morrow is the possibility with which the neutral observer must count. There is no need of directly reversing the prophecies, as there are many energies in the soul of the nation which may react against this new tendency and may automatically check this un-American economic capture. It is a fight with equal chances, and which side will win cannot be foreseen. But if socialism really has entered the realm of practical possibilities, it becomes the duty of everybody to study the new demands from his own standpoint. The nation must see the facts from many angles before it can decide on this tremendous issue. Any one-sidedness, whether in favour of or against the new programme, must be dangerous. In such a situation even the psychologist may be excused for feeling tempted to contribute his little share to the discussion.
The central problem of the psychologist would evidently lie in the question whether the socialistic reformer calculates with right ideas about the human mind. There might, to be sure, be a little psychological side-show not without a peculiar interest at the entrance gate of socialism. We might turn the question, what is the psychology of the socialist, so as to mean, not with what psychology does the socialist operate, but what goes on in the socialist's mind. No doubt the motives have gone through deep changes even in the mind of the cultured leaders. When Karl Marx laid the foundations of socialism, he was moved solely by the desire to recognize a necessary development. It was the interest of the theorist. He showed that the things which the socialist depicted simply had to come. He did not ask whether they are good or bad. They were for him ultimately natural events which were to be forestalled. The leaders to-day see it all in a new light. The socialistic state is to them a goal to the attainment of which all energies ought to be bent. Not their theoretical knowledge, but their practical conscience, leads them to their enthusiasm for a time without capitalism. In the minds of the masses, however, who vote for the socialist here or abroad, the glory of moral righteousness is somewhat clouded by motives less inspiring in quality. The animosity against the men of wealth rushes into the mental foreground, and if it is claimed that the puritans disliked the bear baiting not because it gave pain to the bears, but because it gave pleasure to the onlookers, it sometimes seems as if the socialists, too, desire the change, not in order that the poor gain more comfort, but in order that the rich be punished. And many cleaner motives have mixed in, which resulted from the general change of conditions. The labourer lives to-day in a cultural atmosphere which was unknown to his grandfathers. He reads the same newspaper as his employers, he thinks in the same catch phrases, and has essentially the same foundation of education. Moreover the publicity of our life in this era of print too easily teaches the workingman that his master may be neither better nor wiser than he and his comrades. And finally, the political and economic discussions of the last half century have made it perfectly clear to him that the removing of the material misery lies in the realm of practical possibility, and that even without bombs a new economic order may be created almost as easily as a new tariff law or an income tax or an equal suffrage. Hence it is not surprising that all these motives combined turn the imagination of millions to the new panaceas.
But if low motives are mixed with high ones in the mind of the champions of socialism, they certainly have never stopped assuring us that it is worse with their opponents. Marx himself declared passionately that greed was the deepest spring, that “the most violent and malignant passions of the human breast, the furies of private interest” are whipping men into the battle against socialism. However that may be, the discussions in the clubroom and in the political hall perhaps oftener suggest a less malignant motive, a persistent carelessness, which keep the friends of the capitalistic order from making the effort really to find out at what the socialists are aiming. The largest part of the private and public accusations of socialism starts from the conviction that socialism means that all men must have equal property, and in consideration of the fact that no real socialist demands that, and that the socialists have always insisted that this is not their intention, there indeed seems to be some psychology necessary to understand why the antisocialists do not take the trouble to find out first what socialism is.
But here we are not engaged in the mental analysis of those who fight about socialism. We want rather to ask whether the human minds are rightly understood by those who tell us that socialism is, or is not, the solution of our social problems. And if we turn to this fundamental question whether socialism ought to become the form of our society, the chief thing will be to avoid a mistake in the discussion which pervades the largest part of our present-day literature. The problem is no longer, as it was in the childhood days of socialistic debate, whether the historical necessities must bring socialism. We know that socialism will come, if we like it, and that we can avoid it, if we hate it, and that everything therefore depends upon the decision of the community whether it wants to work for or against the great economic revolution. It is thus not a question of facts, but of preferences, of judgments, of ideals. We do not simply have to exchange wise words as to that which will come anyhow, but we have to make up our mind whether it appears to us desirable or not desirable, and that means, whether it is in harmony with our purpose or not.
But this forces on us as the very first inquiry: what is the purpose of our social economic system to be? Just here the mistake comes into the debates. We hear eloquent orations about the merits or demerits of socialism, without any effort being made to define clearly for what end it is useful or useless. It is meaningless to claim that socialism is good, if we do not know for what it is good, and the whole flippancy of the discussion too often becomes apparent when we stop and inquire what purposes the speaker wants to see fulfilled. We find a wobbling between two very different possible human purposes, with the convenient scheme of exchanging the one for the other, when the defender gets into a tight place. These two great purposes are economic development and human happiness. With the gesture of high cultural inspiration the new scheme is praised to us as a way toward a greater economic achievement by mankind, a fuller development of human economic life. But as soon as doubts are cast on the value of the scheme for this noble purpose, the argument slips into the other groove and shows us that socialism is wonderful for removing human misery and bringing sweet happiness to numberless men, women, and children. According to the same scheme, of course, when we do not feel convinced that socialism will be the remedy for unhappiness, the scene is changed again, and we hear that it will be splendid for economic progress.
No one would claim that the two ends have nothing to do with each other. We might define the progress of economic life in such a way that the increase of human happiness belongs within its compass. Or we might show that widespread human happiness would be an advantageous condition for the development of economic civilization. But in any case the two are not the same, and even their intimate relation may appear artificial. To discuss the value of a new scheme without perfectly clearing up and sharply discriminating the possible ends for which it may be valuable, can never be helpful toward the fundamental solution of a problem. Nobody doubts that human progress is a worthy aim, and no one denies that human happiness is a beautiful goal. Hence we may evade the philosophical duty of proving through reasons that they are justified ends. We take them for granted, and we only insist that the one is not the other, and that it is utterly in vain to measure the value of socialism with reference to these two ideals, as long as we do not cleanly discriminate for which of the two socialism can be valuable. In itself it may very well be that it is splendid for human progress, but unfit for promoting human happiness, or that it is powerless for the development of mankind, but most successful for the increase of human joy.
Hence we ask at first only: how does the old or the new system serve the progress of mankind? What this human progress means is clearly interpreted by the history of five thousand years of civilization. It is the history of the growing differentiation of human demands and fulfilments. Every new stage in the culture of mankind developed new desires and new longings from nature and from society, but it also brought with it new means of satisfying the longings and fulfilling the desires. The two belong most intimately together. The new means of fulfilment stimulate new desires of intellect and emotion and will, and the new desires lead to further means of their satisfaction. Thus there is an incessant automatic enrichment, an endless differentiation, a thousand new needs on the height of civilization where the primitive race found a few elementary demands, and a thousand new schemes of material technique and of social, institutional life where the lower culture found all it needed with simple devices. It is an unfolding not dissimilar to that which the plants and the animals have shown in their organic life in the long periods of natural evolution. The development from the infusors to the monkeys was such a steady increase in the manifoldness of functions. The butterfly is as well adjusted to its life conditions and as well off as the fish, and the fish as well off as the elephant, and in the evolution of economic civilization as in that of the kingdom of animals the advance does not involve an increase of joy. Pain results from a lack of adjustment, but not from a scarcity of functions. Hence if we strive for progress alone, we are moved not by the hope for greater joy, but by an enthusiastic belief in the value of progress and development itself. Does a socialistic order secure a more forceful, a more spontaneous, a more many-sided, or even a more harmonious growing of new demands and of new means for fulfilment than the capitalistic system which holds us all to-day?
The psychologist certainly has no right to ask to be heard first, when this strictly economic aspect of the great social problem is emphasized. Industrial specialists, administrators of labour, politicians, and financiers stand nearest to the issue. But whatever they testify, they ultimately have to point to mental facts, and the psychologist is naturally anxious to emphasize them. He has nothing new to contribute. It is the old story of the stimulating influence of the spirit of competition. Healthy progress demands unusual exertion. All psychological conditions for that maximum strain are unfavourable in a socialistic state with its acknowledged need of rigid regulation and bureaucracy. We see all around us the flabby routine work, stale and uninspiring, wherever sharp rivalry has no chance. It is the great opportunity for mediocrity, while the unusual talent is made ineffective and wasted. Our present civilization shows that in every country really decisive achievement is found only in those fields which draw the strongest minds, and that they are drawn only where the greatest premiums are tempting them. To-day even the monopolist stands in the midst of such competition, as he can never monopolize the money of the land. This spur which the leaders feel is an incessant stimulus for all those whom they control, and, as soon as that tension is released at the highest point, a perfunctory performance with all its well-known side features, the waste and the idleness, the lack of originality and the unwillingness to take risks, must set in and deaden the work.
Nature runs gigantic risks all the time, and throws millions of blossoms away so as to have its harvest of fruit, and at the same time nature shows the strictest economy and most perfect adjustment to ends in the single blossom which comes to fruit. Just this doubleness is needed in the progressive economic life. The rampant luxuriousness which is willing to throw away large means for a trial and for a fancy which may lead to nothing, and yet a scrupulous economy which reaches its ends with the smallest possible waste, must blend. But as long as man's mind is not greatly changed, both will be the natural tendency of the capitalist, and both are abhorred by the governmental worker. He has no right to run risks, but does not feel it his duty to avoid an unproductive luxuriousness. He wastes in the routine where he ought to economize, and is pedantic in the great schemes in which his imagination ought to be unbridled. The opponents of socialism have often likened the future state to a gigantic prison, where every one will be forced to do the work without a chance for a motive which appeals to him as an individual. This is in one respect unfair, as the socialists want to abolish private capital, but do not want to equalize the premiums for work. Yet is their method not introducing inequality up to the point where it has many of the bad features of our present system, and abolishing it just at the point where it would be stimulating and fertilizing to commerce and industry? We are to allow great differences of personal possession. Even to-day the large companies count with hundred-thousand-dollar salaries, and there is nothing in the socialistic principle which would counteract this tendency. The differences may even grow, if the economic callings are to attract the great talents at all in such a future state. But just the one decisive value of the possessions for the development of industry and commerce—namely, the transforming of the material gain into the capital which produces and works, would become impossible. The national achievement would be dragged down. All the dangers which threaten bureaucratic industrialism everywhere—political party influences with their capricious zigzag courses, favouritism, protection and graft, waste and indifference, small men with inflated importance in great positions, and great men with crushed wings in narrow places—all would naturally increase, and weaken the nation in the rivalry of the world.