System of Economical Contradictions; Or, The Philosophy of Misery

by P.-J. Proudhon

"The proposition, THERE IS NO MEASURE OF VALUE, is illogical and contradictory, as is shown by the very arguments which have been offered in its support.

"The proposition, LABOR IS THE PRINCIPLE OF PROPORTIONALITY OF VALUES, not only is true, resulting as it does from an irrefutable analysis, but it is the object of progress, the condition and form of social well-being, the beginning and end of political economy. From this proposition and its corollaries, EVERY PRODUCT IS WORTH WHAT IT COSTS, and PRODUCTS ARE BOUGHT WITH PRODUCTs, follows the dogma of equality of conditions.

"The idea of value socially constituted, or of proportionality of values, serves to explain further: (a) how a mechanical invention, notwithstanding the privilege which it temporarily creates and the disturbances which it occasions, always produces in the end a general amelioration; (b) how the value of an economical process to its discoverer can never equal the profit which it realizes for society; (c) how, by a series of oscillations between supply and demand, the value of every product constantly seeks a level with cost and with the needs of consumption, and consequently tends to establish itself in a fixed and positive manner; (d) how, collective production continually increasing the amount of consumable things, and the day's work constantly obtaining higher and higher pay, labor must leave an excess for each producer; (e) how the amount of work to be done, instead of being diminished by industrial progress, ever increases in both quantity and quality—that is, in intensity and difficulty—in all branches of industry; (f) how social value continually eliminates fictitious values,—in other words, how industry effects the socialization of capital and property; (g) finally, how the distribution of products, growing in regularity with the strength of the mutual guarantee resulting from the constitution of value, pushes society onward to equality of conditions and fortunes.

"Finally, the theory of the successive constitution of all commercial values implying the infinite progress of labor, wealth, and well-being, the object of society, from the economic point of view, is revealed to us: TO PRODUCE INCESSANTLY, WITH THEE LEAST POSSIBLE AMOUNT OF LABOR FOR EACH PRODUCT, THE GREATEST POSSIBLE QUANTITY AND VARIETY OF VALUES, IN SUCH A WAY AS TO REALIZE, FOR EACH INDIVIDUAL, THE GREATEST AMOUNT OF PHYSICAL, MORAL, AND INTELLECTUAL WELL-BEING, AND, FOR THE RACE, THE HIGHEST PERFECTION AND INFINITE GLORY.

Now that we have determined, not without difficulty, the meaning of the question asked by the Academy of Moral Sciences touching the oscillations of profit and wages, it is time to begin the essential part of our work. Wherever labor has not been socialized,—that is, wherever value is not synthetically determined,—there is irregularity and dishonesty in exchange; a war of stratagems and ambuscades; an impediment to production, circulation, and consumption; unproductive labor; insecurity; spoliation; insolidarity; want; luxury: but at the same time an effort of the genius of society to obtain justice, and a constant tendency toward association and order. Political economy is simply the history of this grand struggle. On the one hand, indeed, political economy, in so far as it sanctions and pretends to perpetuate the anomalies of value and the prerogatives of selfishness, is truly the theory of misfortune and the organization of misery; but in so far as it explains the means invented by civilization to abolish poverty, although these means always have been used exclusively in the interest of monopoly, political economy is the preamble of the organization of wealth.

It is important, then, that we should resume the study of economic facts and practices, discover their meaning, and formulate their philosophy. Until this is done, no knowledge of social progress can be acquired, no reform attempted. The error of socialism has consisted hitherto in perpetuating religious reverie by launching forward into a fantastic future instead of seizing the reality which is crushing it; as the wrong of the economists has been in regarding every accomplished fact as an injunction against any proposal of reform.

For my own part, such is not my conception of economic science, the true social science. Instead of offering a priori arguments as solutions of the formidable problems of the organization of labor and the distribution of wealth, I shall interrogate political economy as the depositary of the secret thoughts of humanity; I shall cause it to disclose the facts in the order of their occurrence, and shall relate their testimony without intermingling it with my own. It will be at once a triumphant and a lamentable history, in which the actors will be ideas, the episodes theories, and the dates formulas.

CHAPTER III.

ECONOMIC EVOLUTIONS.—FIRST PERIOD.—THE DIVISION OF LABOR.

The fundamental idea, the dominant category, of political economy is VALUE.