The Threefold Commonwealth

by Rudolf Steiner

The way to do so, is to be found in the threefold order of society. The people combined in the threefold order act as a collective community through the “rights-State.” The exercise of individual abilities comes under the spiritual organisation.

Everything in the body social indicates the necessity of introducing this threefold organic arrangement, when regarded with a sense of actualities, and not from a view entirely dominated by subjective opinions, theories, predilections, and so forth;—and this question of the relation of individual abilities to the capital-basis of economic life and its ownership, is a special case in point. The “rights-State” will not interfere with the formation and control of private property in capital, so long as the connection of the capital-basis with personal ability remains such, that this private control implies a service to the total community. Moreover, it will remain a “rights-State” in respect to its dealings with private property. It will never itself take over the ownership of private property. It will only ensure that the right of use is transferred at the right moment to a person or group of persons, who, again, through individual conditions, are capable of establishing a purely personal relation to this ownership. This will benefit the body social in two different aspects. The democratic foundation of the “rights-State,” being concerned with the everything that touches all men equally, will enable a sharp watch to be kept, that property rights do not in course of time become property wrongs. And again,—(since the State does not itself administer property, but ensures its transference to individual ability),—men’s individual abilities will develope their fructifying power for the whole body of the community. Under an organisation of this sort, property rights, or their exercise, can safely be left attached to a personality, for so long as seems opportune. One can conceive the representatives in the “rights-State” laying down quite different regulations at different times as to the way in which property is to be transferred from one person or group to another. At the present day, when private property has come to be regarded altogether with great distrust, the proposal is, to convert private property wholesale into communal property. If people proceed far enough along this road, they will find out, that they are strangling the life of the community; and, taught by experience, they will then pursue a different path. But it would undoubtedly be better now, at once, to take measures that would secure social health on the lines here indicated.

So long as an individual alone, or in combination with a group, continues to carry on that productive activity which first procured him a capital-basis to work on, so long he shall retain the right to use accumulations of capital arising as business gains on the primary capital where the gains are applied to the productive extension of the business. Directly this particular personality ceases to control the work of production, the accumulation of capital shall pass on to another person, or group, to carry on the same kind of business, or some other branch of productive industry useful to the whole community. Capital also, that accrues from a productive industry but is not used for its extension, must from the beginning go the same way. Nothing shall count as the personal property of the individual directing the business, except what he receives in accordance with the claim he made when he first took over the business—claims, which he felt able to make on the ground of his personal abilities, and which appear justified by the fact, that he was able to impress people with his abilities sufficiently for them to trust him with capital. If through his personal exertions the capital has been increased, then a portion of this increment will pass into his private ownership,—the addition so made to his original earnings representing a percentage on the addition to the capital. Where the original controller of an industry is unable, or unwilling, to continue in charge, the capital used to start it will either pass over to the new controller with all incumbent obligations, or else will revert to the original owners, according as these latter may decide.

In such an arrangement, one is dealing with transfers of a right. The legal regulation of the terms on which such transfers shall take place, is a matter for the “rights-State.” It will be for the “rights-State” also to see that these transfers are carried out and to conduct the process. It is conceivable that, in detail, the regulations laid down for any such transfer of a right will take very various forms, according as the common sense of right (the “rights-consciousness”) varies in its view of what is right. No mode of conception, which, like the present one, aims at being true to life, will ever attempt to do more than indicate the general direction that such regulation should take. If one keeps to this direction and uses one’s understanding, one will always, in any concrete instance discover what is the appropriate thing to do. One must judge always from the special circumstances and according to the spirit of the thing, what the right course is in actual practice. The more true to life any mode of thought is, the less it will attempt to lay down hard-and-fast rules for details, from preconceived notions of what is requisite. On the other hand, the very spirit of such a form of thought will lead necessarily and decisively to one result or another. For instance, it results unquestionably from such a mode of thought, that the “rights-State” must never use its control of rights-transfers to get any capital into its own hands. Its only business will be to see, that the transfer is made to a person, or group, whose individual abilities seem to warrant it. This at once presupposes also, as a general principle, that anyone, who is proposing to effect a transfer of capital under the circumstances described, will be at liberty to select his successor in the use of it. He will be free to select a person or group of people, or else to transfer the right of use to a corporate body belonging to the spiritual organisation. For anyone, who has rendered practical services to society through his management of capital is a person likely to judge from native ability and with social sense, what should be done with the capital afterwards. And it will be more advantageous to the community to go upon what he decides, than to discard his judgment, and leave the decision to persons who have no direct connection with the matter.

Some settlement of this kind will be required in the case of capital accumulations over a certain amount, which have been acquired by persons, or groups, through the means of production (including land),—except where these accumulations become private property by the terms originally agreed upon for the exercise of individual ability.

In this latter case, what is so earned, as well as all savings that spring from the results of a person’s own work, will remain until the owner’s death, or some later date, in the private possession of the earner or his descendants. Until this date also, these savings will draw an interest from the person who is given them to procure the means of production. The amount of the interest will be the outcome of the general “rights-consciousness,” and be fixed by the “rights-State.” In a social order, based on the principles here described, it will be possible to effect a complete distinction between proceeds that are due to the employment of means of production, and sums accumulated through the earnings of personal labour, spiritual or physical. It is in accordance with the common sense of right, as well as to the general social interest, that these two things should be kept distinct. What a person saves and places at the disposal of a productive industry, is a service rendered to the general interests, inasmuch as it makes it possible in the first place for personal ability to direct production. But where, after deducting the rightful interest, there is an increase on the capital, arising out of the means of production, such increase is due to the collective working of the whole social organism, and must accordingly flow back into it again in the way above described. All that the “rights-State” will have to do, is to pass a resolution, that the capital accumulations in question are to be transferred in the prescribed way. It will not be called on to decide, which material or spiritual branch of production is to have the disposal either of capital so transferred or of capital savings;—for this would lead to the State tyrannising over spiritual and material production, which are best directed for the body social by men’s individual abilities, as has been shewn. But it will be open to anyone to appoint a corporate body of the spiritual organisation to exercise the right of disposal over capital that he has created, if he does not want himself to select his successor.

Property acquired through saving, together with the interest on it, will also pass at the earner’s death, or a while later, to some person or group actively engaged in spiritual or material production,—but only to a producer, not to be turned into an income by someone who is not producing. The choice will be made by the earner in his last will. Here again, if no person or group can be chosen direct, it will be a question of transferring the right of disposal to a corporation of the spiritual system. Only when a person himself makes no disposition of his savings, then the “rights-State” will act on his behalf, and require the spiritual organisation to dispose of them.

In a society ordered on these lines, due regard is paid both to private initiative on the part of the individual and at the same time to the social interests of the general community. Indeed the latter receive their full satisfaction through private initiative being set free to serve them. Whoever has to entrust his labour to the direction of another person, can at least know, under such an order of things, that their joint work will bear fruit to the best advantage of the community, and therefore of the worker himself.

The social order,—as here conceived,—will establish a proportionate relation, satisfactory to healthy human sense, between the prices of manufactured products and the two joint factors of their production,—namely human labour-power and these rights of use over capital (embodied in the means of production) which are subject to the common sense of right. No doubt all sorts of imperfections may be found in this. Imperfections do not matter. For a mode of thought that is true to life, what is of importance is not to lay down a perfect and complete programme for all time, but to point out the direction for practical work. The special instances, discussed here, are simply intended as illustrations to map out the direction more clearly. Any particular illustration may be improved upon; and this will be all to the good, provided the right direction is observed.

Through social institutions of this kind, personal and family feelings will admit of being brought into harmony with the claims of general humanity. It may of course be pointed out, that there will be a great temptation for people to transfer their property during their life-time to their descendants, or to some one of them, and that it is quite easy to give such a person the appearance of a producer, whilst all the while he may be quite incompetent compared to others, who would be much better in his place. The temptation to do this, can however be reduced to a minimum under social institutions of the above kind. The “rights-State” has only to require, that property, which is transferred from one member of a family to another, should under all circumstances, be made over to a corporation of the spiritual system, after the lapse of a certain period from the first owner’s death. Or an evasion of the rule may be prevented in some other way by rights-law. The “rights-State” will merely see to it, that the property is so made over. The spiritual organisation must make provision for the choice of the person to inherit it. In the fulfillment of these principles a general sense will grow up, that the next generation must be trained and educated to fit them for the body social and that one must not do social mischief by passing capital on to persons who are non-productive. No one, in whom a real social sense is awakened, cares to have his own connection with the capital basis of his work carried on by any individual or group whose personal abilities do not warrant it.