The second fact which can not be conjured away by phrases or mere political rearrangements is that—under the present system of society—there is a direct conflict of interests between all nations, even the most civilized. This is why Norman Angell, in his new book (“Arms and Industry”), is at such great pains to deny that nations are economic units and “competing business firms.” His denial is futile.

Even workers gain from successful imperialism.

Even under individualistic capitalism all elements of the capitalist class have a greater or less interest in the business of the nation to which they belong; under the State Socialist policy, which is spreading everywhere, this community of interests is still closer. Moreover, under State Socialism even the working classes gain a share (of course, a small one) of whatever profits accrue from the successful competition of one’s own nation with other nations, and especially from such competition in its aggressive form, “imperialism.”

Socialists have sometimes denied that the economic interests of the working people of the various nations conflict.

Otto Bauer, of Austria, the world’s leading Socialist authority on Imperialism—who was to report on the subject for the International Socialist Congress to have been held in Vienna last summer—is of the contrary opinion. He believes that one of the worst features of the present system is that, under capitalism, the immediate economic interests of the working people of the various nations do conflict.

Only in so far as the working people attach greater importance to attaining Socialism than to anything they can gain under the present society, are their interests in all nations the same. In so far as the working people aim at an improvement of their condition this side of Socialism their economic interests are often in conflict.

Moreover, State Socialism, political democracy, and social reform, since they tend to give the working people a slightly greater share in the prosperity of each nation, intensify the workers’ nationalism and aggravate the conflict of immediate economic interests. This is why all the labor union parties of the world are tending in the same direction as that in which the German Party has been so clearly headed since the war—a tendency very clearly formulated by Vorwaerts when it recently asked whether the German Party was not becoming a “nationalistic social reform labor party.”

The bourgeois pacifists consider war to be the “great illusion.” In favoring war, under any conditions, they say, the capitalists, the middle classes, and the working classes are all mistaken. The only people that gain are the officers of armies and navies, and armament manufacturers. It is needless for Socialists—believers in the economic interpretation of politics—to point out that such a conclusion can only be reached by an abandonment of the economic point of view.

Only solution is industrial and financial internationalization.

In the opinion of internationalists, war can be abolished neither by armament or disarmament, nor by any measures leading in either direction. War can be abolished only by abolishing the causes of war, which every practical man admits are economic. By strengthening already existing and natural economic tendencies which are slowly bringing the nations together, the causes of war may be gradually done away with.