Still, it should be insisted that the basis of socialism is economic, involving a fundamental change in the relation of labour to land and capital—a change which will largely affect production, and will entirely revolutionise the existing system of distribution. But, while its basis is economic, socialism implies and carries with it a change in the political, ethical, technical, and artistic arrangements and institutions of society, which would constitute a revolution greater than has ever taken place in human history, greater than the transition from the ancient to the mediæval world, or from the latter to the existing order of society.
In the first place, such a change generally assumes as its political complement the most thoroughly democratic organisation of society. The early socialism of Owen and Saint-Simon was marked by not a little of the autocratic spirit; but the tendency of the present socialism is more and more to ally itself with the most advanced democracy. Socialism, in fact, claims to be the economic complement of democracy, maintaining that without a fundamental economic change political privilege has neither meaning nor value.
In the second place, socialism naturally goes with an unselfish or altruistic system of ethics. The most characteristic feature of the old societies was the exploitation of the weak by the strong under the systems of slavery, serfdom, and wage-labour. Under the socialistic régime it is the privilege and duty of the strong and talented to use their superior force and richer endowments in the service of their fellow-men without distinction of class, or nation, or creed. Whatever our opinion may be of the wisdom or practicability of their theories, history proves that socialists have been ready to sacrifice wealth, social position, and life itself, for the cause which they have adopted.
In the third place, socialists maintain that, under their system and no other, can the highest excellence and beauty be realised in industrial production and in art; whereas under the present system beauty and thoroughness are alike sacrificed to cheapness, which is a necessity of successful competition.
Lastly, the socialists refuse to admit that individual happiness or freedom or character would be sacrificed under the social arrangements they propose. They believe that under the present system a free and harmonious development of individual capacity and happiness is possible only for the privileged minority, and that socialism alone can open up a fair opportunity for all. They believe, in short, that there is no opposition whatever between socialism and individuality rightly understood, that these two are complements the one of the other, that in socialism alone may every individual have hope of free development and a full realisation of himself.
Having shown how wide a social revolution is implied in the socialistic scheme of reconstruction, we may now state (1) that the economic basis of the prevalent socialism is a collectivism which excludes private possession of land and capital, and places them under social ownership in some form or other. In the words of Schäffle, ‘the Alpha and Omega of socialism is the transformation of private competing capital into a united collective capital.’[[7]] Adolf Wagner’s more elaborate definition of it[[8]] is entirely in agreement with that of Schäffle. Such a system, while insisting on collective capital, is quite consistent with private property in other forms, and with perfect freedom in the use of one’s own share in the equitable distribution of the produce of the associated labour. A thorough-going socialism demands that this principle should be applied to the capital and production of the whole world; only then can it attain to supreme and perfect realisation. But a sober-minded socialism will admit that the various intermediate stages in which the principle finds a partial application are so far a true and real development of the socialistic idea.
Even the best definitions, however, are only of secondary importance; and while we believe that those we have just mentioned give an accurate account of the prevailing socialism, they are arbitrary, abstract, and otherwise open to objection. As we have already seen, the system of Fourier admitted of private capital under social control. The absolute views of the subject now current are due to the excessive love of system characteristic of German thought, and are not consistent either with history or human nature.
(2) Socialism is both a theory of social evolution and a working force in the history of the nineteenth century. The teaching of some eminent socialists, such as Rodbertus, may be regarded as a prophecy concerning the social development of the future rather than as a subject of agitation. In their view socialism is the next stage in the evolution of society, destined after many generations to supersede capitalism, as capitalism displaced feudalism, and feudalism succeeded to slavery. Even the majority of the most active socialists consider the question as still in the stage of agitation and propaganda, their present task being that of enlightening the masses until the consummation of the present social development, and the declared bankruptcy of the present social order, shall have delivered the world into their hands. Socialism, therefore, is for the most part a theory affecting the future, more or less remote, and has only to a limited degree gained a real and practical footing in the life of our time. Yet it should not be forgotten that its doctrines have most powerfully affected all the ablest recent economic writers of Germany, and have even considerably modified German legislation. Its influence is rapidly growing among the lower and also among the most advanced classes in almost every country dominated by European culture, following the development of capitalism, of which it is not merely the negation, but in a far wider and more real sense is also the goal.
(3) In its doctrinal aspects socialism is most interesting as a criticism of the present economic order, of what socialists call the capitalistic system, with which the existing land system is connected. Under the present economic order land and capital (the material and instruments without which industry is impossible) are the property of a class employing a class of wage-labourers handicapped by their exclusion from land and capital. Competition is the general rule by which the share of the members of those classes in the fruits of production is determined. Against this system critical socialism is a reasoned protest; and it is at issue also with the prevailing political economy, in so far as it assumes or maintains the permanence or righteousness of this economic order. Of the economic optimism implied in the historic doctrine of laissez-faire, socialism is an uncompromising rejection.
(4) Socialism is usually regarded as a phase of the struggle for the emancipation of labour, for the complete participation of the working classes in the material, intellectual, and spiritual inheritance of the human race. This is certainly the most substantial and most prominent part of the socialist programme, the working classes being the most numerous and the worst sufferers from the present régime. This view, however, is rather one-sided, for socialism claims not less to be in the interest of the small capitalist gradually crushed by the competition of the larger, and in the interest also of the large capitalist, whose position is endangered by the vastness and unwieldiness of his success, and by the world-wide economic anarchy from which even the greatest are not secure. Still, it is the deliverance of the working class that stands in the front of every socialistic theory; and, though the initiative in socialist speculation and action has usually come from men belonging to the middle and upper classes, yet it is to the workmen that they generally appeal.