Among themselves they talk, albeit without much conviction, about "surplus value"—which has nothing whatever to do with the present question, and in regard to which it has been proved to them often enough that so far as it can be made use of at all, it only means about a pound of butter extra per head of the population.

The economic superiority of the Western powers, however, goes on growing, inasmuch as to all appearance they are getting to work seriously to establish the new economy (which we have buried) in the form of State Socialism. A healthy, or what is to-day the same thing, a victorious economy, does not leap over any of its stages; it will work gradually through the apparently longer, but constant, movement from Capitalism to State Socialism and thence to full Socialism; while we, it seems, want to take a shortcut, and to miss out the intervening stage. And we lose so much time and energy in restless fluctuations forward and backward, hither and thither, that this leap in advance may fall short.

If anything could be more stupid and calamitous than the war itself it was the time when it broke out. There was one thing which the big capitalism of the world was formed to supply, which it was able to supply, and, in fact, was supplying: the thing which not only justified capitalism, but showed it to be an absolutely necessary stage in the development of a denser population. This was the enrichment of the peoples, the rapid, and even anticipatory restoration of equilibrium between the growing population and the indispensable increase in the means of production; in other words, general well-being. The unbroken progress of America, and the almost unbroken progress of England will demonstrate that in one, or at most two, generations the power of work and the output of mechanism would have risen to such a pitch that we could have done anything we liked in the direction of lightening human labour and reconciling social antagonisms.

Alas, it was in vain! The rapid advance to prosperity of the people of Central Europe, who had been accustomed to thrift and economy, went to their heads; they fell victims to the poison of capitalism and of mechanism; they were unable, like America in its youthful strength, to make their new circumstances deepen their sense of responsibility; in their greedy desire to store as much as possible of the heavenly manna in their private barns they abandoned their destinies to a superannuated, outworn feudal class and to aspiring magnates of the bourgeoisie; they would not be taught by political catastrophes, and at last, in the catastrophe of the war, they lost at once their imaginary hopes, their traditional power and the economic basis of their existence.

Those who are now pursuing a policy of desperation are unconsciously building their hopes on the breakdown which brought them to the top: they are avowedly making the hoped-for revolution in the West the central point of their system. If the West holds out, they will be false prophets; but it will not only hold out, it will in the beginning at all events, witness a great and passionate uprising of imperialistic and capitalistic tendencies. If there is any one who did not understand that a policy based on hopes of other peoples' bankruptcy is the most flimsy and frivolous of all policies, he might well have learned it from the war.

Germany must forge her own destinies for herself, without side-glances at the good or ill fortune of others. Had time only been given us to pass naturally from the stage of a prolonged and corrupted childhood into that of a manly responsibility, our ultimate recovery would be assured. But we have to accomplish in months what ought to be the evolution of decades; our national training has left us without convictions, we have no eye for the true boundaries of rights, claims and responsibilities, and we hesitate as to how far we must or ought to go. Unprepared, weakened, impoverished and sick, we are required, at the most unlucky moment, to work out a new and unprecedented order of life. Before even the educated classes are capable of forming a judgment on the question, the most incapable masses of the rawest youth, of the lowest classes of society, are let loose, and sit upon the judgment-seat.

It is not only that we have been rich and have become very poor, but we were always politically immature, and are so still. If the order of Society is to be that of root-and-branch Socialism, it will mean the proletarian condition for all of us, and for a long time to come. There is no use in flattering ourselves and painting the future better than it is; the truth must be spoken with all plainness. If we work hard, and under capable guidance, each of us will at most have an effective income of 500 marks in pre-war values, or, say, 2000 marks for the family. This average will be higher if we proceed on the principles of the New Economy,[7] but again will be reduced by the necessity for allowing extra pay for work of higher value. If to-day the average income available is markedly higher than the above, the reason is that we are living on our capital; we are living on the products of work which ought to be reserved for the maintenance and renewal of the means of production; in other words we are exhausting the soil and slaughtering our stock. We are also consuming what foreign countries give us on credit; in other words, we are living on borrowed money.

It is childish lying and deception to act on the tacit assumption that thoroughgoing Socialism means something like a garden-city idyll, with play-houses, open-air theatres, excursions, picturesque raiment and fire-side art. This in itself quite decent ideal of the average architect, art-craftsman and art-reformer if expressed in dry figures would, "at the lowest estimate" as they say, demand about fivefold the capacity for production attainable by the utmost exertions and with a ten hours' day before the war—before the downfall of our economy and our exploitation by the enemy.

To place one-third of our working-class in decent, freehold dwellings would alone, if the material and means of production sufficed, require the whole working-capacity of the country for two years. Even after the last manufacturer's villa-residence, the last palace-hotel, have long been turned into tenements, the solution of the most urgent part of the housing-question will still be an affair of decades. For the sake of the last remnant of our self-respect we must finally tear asunder that web of economic falsehood, woven out of ignorance, mental lethargy, concealment and illusion, which has taken the place of the political. Let us see any one attempt to prove that Germany can carry on, I do not say a well-off, but even a petty tradesman's kind of existence, unless our means of production can by some stroke of magic be multiplied tenfold—on paper it can be done with ease—or unless the production value (not turnover), which an adult working-man can with the utmost exertion bring into being in the course of a year does not many times exceed the average value of 2000 marks.

No doubt the young folk of our big cities promise themselves a merry time for six weeks when they have got power, the shops, the wardrobes and the wine-cellars into their hands. For the leaders, it may last a little longer than for the rank-and-file. And then, for those of the former who have any sense of honesty, will come a question of conscience, which may be delayed by printing paper-money, but cannot be solved by any appeal to the people.