A Critical Examination of Socialism

by W. H. Mallock

At first sight it may seem that this problem is incapable of any definite solution; and some socialistic writers have done their best to obscure it. The efficiency of labour, they say, is in the modern world largely due, no doubt, to the action of directive ability; but ability could produce nothing unless it had labour to direct; whence it is inferred that the claim of labour on the product may in justice be almost anything short of the absolute total. To this abstract argument we will presently come back; but we will first examine another urged by a celebrated thinker, which, though less extreme in its implications, would, were it only sound, be even more fatal to our chances of arriving at the conclusion sought for. The thinker to whom I refer is Mill, who assigns to this argument a very prominent place in the opening chapter of his Principles of Political Economy.

Certain economists have, so he says, debated "whether nature gives more assistance to labour in one kind of industry than in another"; and he endeavours to show that the question is in its very essence unanswerable. "When two conditions," he proceeds, "are equally necessary for producing the effect at all, it is unmeaning to say that so much is produced by one, and so much by the other. It is like attempting to decide which of the factors five and six contributes most to the production of thirty." And if this argument is true of nature and labour, it is equally true of labour and the ability by which labour is directed. Thus a great ocean liner which, in Mill's language, would be "the effect," could not be produced at all without the labour of several thousand labourers; and it is equally true that it could not be produced at all unless the masters of various sciences, designers, inventors, and organisers, directed the labour of the labourers in certain specific ways. Both conditions, then, being "necessary for producing the effect at all," the portions of it due to each would, according to Mill's argument, be indeterminable. Let us consider, therefore, if Mill's argument is sound. We shall find that it is vitiated by a fallacy which will, as soon as we have perceived it, show us the way to the truth of which we are now in search. Let us begin with taking the argument as he himself applies it.

He brings it forward with special reference to agriculture, and aims it at the contention of a certain school of economists that nature in agriculture did more than in other industries. To urge this, says Mill, is nonsense, for the simple reason that though nature in agriculture does something, it is impossible to determine whether the something is relatively much or little. Let us, he says in effect, take the products of any farm, which we may for convenience' sake symbolise as so many loaves; and it is obviously absurd to inquire which produces most of them—the soil or the farm labourers. The soil without the labourers would produce no loaves at all. The labourers would produce no loaves if they had not the soil to work upon.

Now, if there were only one farm in the world, and one grade of labour, and if every acre of this farm, when the same labour was applied to it, would always yield the same amount of produce—let us say one loaf—Mill's argument would be true. The actual state of the case is, however, very different. Acres vary very greatly in quality; and if we take four acres of varying degrees of fertility, to all of which is applied the same amount of labour, then, while from the worst of the acres this labour will elicit one loaf, it will elicit from the others, let us say, according to their degrees of fertility, two loaves, three loaves, and four loaves respectively. Here the labour being in each of the four cases the same, and the additional loaves resulting in three cases only, it is obvious that the difference between the larger products and the less is not due to the labour, but to certain additional qualities present, in the three superior acres and not present in the worst one. In other words, although in producing loaves—or, as Mill describes it, "the effect"—the parts played by labour and nature are indefinite and incommensurable so long as the land, the labour, and the effect remain all three the same, the parts become immediately measurable when the effect begins to vary, and one of the causes, and only one of them, at the same time varies also.

This truth can be yet further elucidated by the very illustration which Mill cities in disproof of it. It is absurd to ask, he says, whether the number five or six does most, when they are multiplied together, to produce "the effect" thirty. This is true so long as "the effect" thirty is constant; but if on occasions the thirty is increased to forty, and if whenever this happens the six has increased to eight, we know that the extra ten which our multiplication yields us is not due to the five, the number which remains unchanged, but to an extra two now present in the number that was once six. Or again let us take as "the effect" the speed of a motor-car which is raced over a mile of road. Unless two conditions were present—the engine and some ground to run upon—the car could not run at all; and if there were only one road and one car in the world, it would be absurd to inquire how much of the speed was due to the merits of the engine, and how much to the character of the road's surface. But if, the car remaining unchanged, the surface of the road was improved, and a speed was thereupon developed of thirty miles an hour instead of twenty, we should, with regard to the increment, at once be able to say that it was due to the surface of the road, and was not due to the engine. Conversely, if the road were unchanged, but the car had a new engine, and the speed under these conditions increased in the same way, the increment would be evidently attributable to the engine and not the road.

And the same observations apply to labour and directive ability, whenever the operations of both are essential to a given product. If the ability and the labour were always inevitably constant, and the product as to quality and amount were similarly constant also, we could not say that so much or so little of the effect was due to one cause, and so much or so little to the other. If there were in the world only a thousand shipwrights, and these men, working always under the same director, always produced in a year one ship of an unchanging kind, we could not say which of its parts or how much of its value were due to the man directing, and which or how much were due to the men directed. But if for one year this director were to retire and another was to take his place, and, the same labourers being directed by this new master, the result was the production not of one ship but of two; and if, when the year was ended, and the old master came back again, the annual product once more was not the two ships but one, we could then say, as a matter of common-sense with regard to the year during which the two vessels were built, that the second vessel, whatever might be the case with the first, was due wholly to the ability of the master, and not to the labour of the men. In other words, the ability of the director of labour produces so much of the product, or of that product's value as exceeds what was produced by the labourers before their labour was directed by him, and would cease to be produced any longer as soon as his direction was withdrawn.

That in the case of any result which requires separable causes for its production, this method of allocating to these causes respectively so much of the result and so much of it only, is a method always adopted in all practical reasoning, may be seen by taking a result which is not beneficial but criminal. Twenty Russian labourers, all loyal to the Czar, are, let us say, employed to dig out a cellar under a certain street, and to fill it with cases which ostensibly contain wine. Subsequently, as the Czar is passing, he is killed by a huge explosion. It then becomes apparent that the so-called cellar was a mine, and the harmless-looking cases had really been filled with dynamite. Now, if all those concerned in the consummation of this catastrophe were tried, it is perfectly evident that the part played by the labourers would be sharply discriminated from that played by the man employing them; and, although they contributed something which was necessary to the production of the result, it would certainly have been admitted by General Trepoff himself that they had contributed nothing to its essential and criminal elements. It is equally evident that the increment of wealth which results from the obedience of labourers to injunctions which do not emanate from themselves, is produced by the man who gives the injunctions, and not by the men who obey them.

But here we must return to the argument, already mentioned in passing, which may be restated thus: A thousand labourers, directed by their own intelligence only, produce a product whose amount we will call a thousand. The same labourers are directed by a man of ability, and the product rises from one thousand to two. But if the production of this second thousand is to be credited to the man of ability on the ground that, were the ability absent, no second thousand would be produced, we may reach by the same reasoning a conclusion precisely opposite, and credit not only the first, but both the thousands to labour, on the ground that, if the labour were absent, nothing would be produced at all. The argument is plausible; and in order to understand its fallacy we must give our attention to a fact, not generally realised, which is involved in all practical reasoning about all causes whatsoever.

If we use the word "cause" in its strict speculative sense, the number of causes involved in the simplest effect is infinite. Let us take, for example, the speed of a horse which wins a race. Why does the speed of this horse exceed that of the others? We may in answer point to qualities of its individual organism. But these will carry us back to all its recorded ancestors—sires and dams for a large number of generations: and even so we shall have been taken but a small part of our way. The remotest of these ancestors—why were they horses at all? For our answer we must travel through the stages of organic evolution, till we reach the point at which animal and vegetable life were one. Had any of these antecedents been missing, the winning race-horse would not have won the race. Nor is this all. We have to include in our causes air, gravitation, and the fact that the earth is solid. No horse could win on turf which was based on vapour. But by all the thousands who witness a great race this whole mass of ulterior, though necessary, causes is ignored. The only causes which for them have any practical interest are those comprised in the organism of the winning horse itself. Who would contend that this horse had not won its own victory, on the ground that part of its own speed—a part which could not be calculated—was contributed by the crust of the earth, or the general constitution of the universe? Any one arguing thus would be howled down as a madman. Now, why is this? Why would the common-sense of mankind, in a practical matter like a race, instinctively exercise this kind of eclecticism, concentrating itself on certain causes and absolutely ignoring others? Such behaviour is not arbitrary. It depends on a principle inherent in all practical reasoning whatsoever. Let us see what this principle is.

When, with any practical purpose in view, we insist that anything is the cause of anything else, or produces anything else, we are always selecting, out of an incalculable number of causes, one cause or agency which, under the circumstances in view, may or may not be present; which a careless person may neglect to introduce; which an ignorant person may be persuaded to take away; or a recognition of which will influence human conduct somehow; while all other causes, which no one proposes to take away, or which no one is able to take away, are assumed by all parties, but they are not considered by anybody. Why should they be considered? Not only are they so numerous that no intellect could deal with them, but they have, since with regard to them there is no difference of opinion, no place in any practical discussion at all. If a ton of stone is to be placed on a piece of framework, men may reasonably discuss whether the framework is strong enough to bear it, or whether material is not being wasted in making it stronger than necessary. What will happen without an additional girder? Or what will happen if we take two girders away? Will the stone fall or not? These questions belong to the domain of practical reasoning because to take a girder away, or else introduce fresh ones, lies within the power of the disputants. But no practical men would think of complicating the discussion by calculating what would happen if they suspended the action of gravitation, in which case the stone would need no support whatever; for to suspend the action of gravitation is within the power of nobody. If two men are debating in the middle of the night at midsummer whether there is enough oil in the lamp to keep it alight till sunrise, they are debating a question of a strictly practical kind: for it rests with them to put in more oil or not. What will happen if they do not? That is the point at issue. But they neither of them would debate what would happen if the movement of the earth were retarded, and the midsummer morning were delayed till the hour at which it dawns in winter. They do not discuss this contingency, for they rightly assume it to be impossible, and consequently the discussion of it would have no practical meaning.