SigPhi · Proudhon

System of Economical Contradictions; Or, The Philosophy of Misery

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And such complex and intricate questions as those of taxation, credit, international trade, property, heredity,--has M. Blanc fathomed them? Has he solved the problem of population? No, no, no, a thousand times no: when M. Blanc cannot solve a difficulty, he eliminates it. Regarding population, he says: As only poverty is prolific, and as the social workshop will cause poverty to disappear, there is no reason for giving it any thought.

In vain does M. de Sismondi, supported by universal experience, cry out to him: We have no confidence in those who exercise delegated powers. We believe that any corporation will do its business worse than those who are animated by individual interest; that on the part of the directors there will be negligence, display, waste, favoritism, fear of compromise, all the faults, in short, to be noticed in the administration of the public wealth as contrasted with private wealth. We believe, further, that in an assembly of stockholders will be found only carelessness, caprice, negligence, and that a mercantile enterprise would be constantly compromised and soon ruined, if it were dependent upon a deliberative commercial assembly.

M. Blanc hears nothing; he drowns all other sounds with his own sonorous phrases; private interest he replaces by devotion to the public welfare; for competition he substitutes emulation and rewards. After having posited industrial hierarchy as a principle, it being a necessary consequence of his faith in God, authority, and genius, he abandons himself to mystic powers, idols of his heart and his imagination.

Thus M. Blanc begins by a coup d' Etat, or rather, according to his original expression, by an application of the FORCE OF INITIATIVE which he gives to power; and he levies an extraordinary tax upon the rich in order to supply the proletariat with capital. M. Blanc's logic is very simple,--it is that of the Republic: power can accomplish what the people want, and what the people want is right. A singular fashion of reforming society, this of repressing its most spontaneous tendencies, denying its most authentic manifestations, and, instead of generalizing comfort by the regular development of traditions, displacing labor and income! But, in truth, what is the good of these disguises? Why so much beating about the bush? Was it not simpler to adopt the agrarian law straightway? Could not power, by virtue of its force of initiative, at once declare all capital and tools the property of the State, save an indemnity to be granted to the present holders as a transitional measure? By means of this peremptory, but frank and sincere, policy, the economic field would have been cleared away; it would not have cost utopia more, and M. Blanc could then have proceeded at his ease, and without any hindrance, to the organization of society.

But what do I say? organize! The whole organic work of M. Blanc consists in this great act of expropriation, or substitution, if you prefer: industry once displaced and republicanized and the great monopoly established, M. Blanc does not doubt that production will go on exactly as one would wish; he does not conceive it possible that any one can raise even a single difficulty in the way of what he calls his SYSTEM. And, in fact, what objection can be offered to a conception so radically null, so intangible as that of M. Blanc? The most curious part of his book is in the select collection which he has made of objections proposed by certain incredulous persons, which he answers, as may be imagined, triumphantly. These critics had not seen that, in discussing M. Blanc's SYSTEM, they were arguing about the dimensions, weight, and form of a mathematical point. Now, as it has happened, the controversy maintained by M. Blanc has taught him more than his own meditations had done; and one can see that, if the objections had continued, he would have ended by discovering what he thought he had invented,--the organization of labor.

But, in fine, has the aim, however narrow, which M. Blanc pursued,-- namely, the abolition of competition and the guarantee of success to an enterprise patronized and backed by the State,--been attained? On this subject I will quote the reflections of a talented economist, M. Joseph Garnier, to whose words I will permit myself to add a few comments.

The government, according to M. Blanc, would choose MORAL WORKMEN, and would give them GOOD WAGES.

So M. Blanc must have men made expressly for him: he does not flatter himself that he can act on any sort of temperaments. As for wages, M. Blanc promises that they shall be GOOD; that is easier than to define their measure.

M. Blanc admits by his hypothesis that these workshops would yield a net product, and, further, would compete so successfully with private industry that the latter would change into national workshops.

How could that be, if the cost of the national workshops is higher than that of the free workshops? I have shown in the third chapter that three hundred workmen in a mill do not produce for their employer, among them all, a regular net income of twenty thousand francs, and that these twenty thousand francs, distributed among the three hundred laborers, would add but eighteen centimes a day to their income. Now, this is true of all industries. How will the national workshop, which owes ITS WORKMEN GOOD WAGES, make up this deficit? By emulation, says M. Blanc.

M. Blanc points with extreme complacency to the Leclaire establishment, a society of house-painters doing a very successful business, which he regards as a living demonstration of his system. M. Blanc might have added to this example a multitude of similar societies, which would prove quite as much as the Leclaire establishment,--that is, no more. The Leclaire establishment is a collective monopoly, supported by the great society which envelops it. Now, the question is whether entire society can become a monopoly, in M. Blanc's sense and patterned after the Leclaire establishment: I deny it positively. But a fact touching more closely the question before us, and which M. Blanc has not taken into consideration, is that it follows from the distribution accounts furnished by the Leclaire establishment that, the wages paid being much above the general average, the first thing to do in a reorganization of society would be to start up competition with the Leclaire establishment, either among its own workmen or outside.

Wages would be regulated by the government. The members of the social workshop would dispose of them as they liked, and THE INDISPUTABLE EXCELLENCE OF LIFE IN COMMON WOULD NOT BE LONG IN CAUSING ASSOCIATION IN LABOR TO GIVE BIRTH TO VOLUNTARY ASSOCIATION IN PLEASURE.

Is M. Blanc a communist, yes or no? Let him declare himself once for all, instead of holding off; and if communism does not make him more intelligible, we shall at least know what he wants.

In reading the supplement in which M. Blanc has seen fit to combat the objections which some journals have raised, we see more clearly the incompleteness of his conception, daughter of at least three fathers,-- Saint-Simonism, Fourierism, and communism,--with the aid of politics and a little, a very little, political economy.

According to his explanations, the State would be only the regulator, legislator, protector of industry, not the universal manufacturer or producer. But as he exclusively protects the social workshops to destroy private industry, he necessarily brings up in monopoly and falls back into the Saint-Simonian theory in spite of himself, at least so far as production is concerned.

M. Blanc cannot deny it: his SYSTEM is directed against private industry; and with him power, by its force of initiative, tends to extinguish all individual initiative, to proscribe free labor. The coupling of contraries is odious to M. Blanc: accordingly we see that, after having sacrificed competition to association, he sacrifices to it liberty also. I am waiting for him to abolish the family.

Nevertheless hierarchy would result from the elective principle, as in Fourierism, as in constitutional politics. But these social workshops again, regulated by law,--will they be anything but corporations? What is the bond of corporations? The law. Who will make the law? The government. You suppose that it will be good? Well, experience has shown that it has never been a success in regulating the innumerable accidents of industry. You tell us that it will fix the rate of profits, the rate of wages; you hope that it will do it in such a way that laborers and capital will take refuge in the social workshop. But you do not tell us how equilibrium will be established between these workshops which will have a tendency to life in common, to the phalanstery; you do not tell us how these workshops will avoid competition within and without; how they will provide for the excess of population in relation to capital; how the manufacturing social workshops will differ from those of the fields; and many other things besides. I know well that you will answer: By the specific virtue of the law! And if your government, your State, knows not how to make it? Do you not see that you are sliding down a declivity, and that you are obliged to grasp at something similar to the existing law? It is easy to see by reading you that you are especially devoted to the invention of a power susceptible of application to your system; but I declare, after reading you carefully, that in my opinion you have as yet no clear and precise idea of what you need. What you lack, as well as all of us, is the true conception of liberty and equality, which you would not like to disown, and which you are obliged to sacrifice, whatever precautions you may take.

Unacquainted with the nature and functions of power, you have not dared to stop for a single explanation; you have not given the slightest example.

Suppose we admit that the workshops succeed as producers; there will also be commercial workshops to put products in circulation and effect exchanges. And who then will regulate the price? Again the law? In truth, I tell you, you will need a new appearance on Mount Sinai; otherwise you will never get out of your difficulties, you, your Council of State, your chamber of representatives, or your areopagus of senators.

The correctness of these reflections cannot be questioned. M. Blanc, with his organization by the State, is obliged always to end where he should have begun (so beginning, he would have been saved the trouble of writing his book),--that is, in the STUDY OF ECONOMIC SCIENCE. As his critic very well says: "M. Blanc has made the grave mistake of using political strategy in dealing with questions which are not amenable to such treatment"; he has tried to summon the government to a fulfillment of its obligations, and he has succeeded only in demonstrating more clearly than ever the incompatibility of socialism with haranguing and parliamentary democracy. His pamphlet, all enamelled with eloquent pages, does honor to his literary capacity: as for the philosophical value of the book, it would be absolutely the same if the author had confined himself to writing on each page, in large letters, this single phrase: I PROTEST.

To sum up: To sum up: Competition, as an economic position or phase, considered in its origin, is the necessary result of the intervention of machinery, of the establishment of the workshop, and of the theory of reduction of general costs; considered in its own significance and in its tendency, it is the mode by which collective activity manifests and exercises itself, the expression of social spontaneity, the emblem of democracy and equality, the most energetic instrument for the constitution of value, the support of association. As the essay of individual forces, it is the guarantee of their liberty, the first moment of their harmony, the form of responsibility which unites them all and makes them solidary.

But competition abandoned to itself and deprived of the direction of a superior and efficacious principle is only a vague movement, an endless oscillation of industrial power, eternally tossed about between those two equally disastrous extremes,--on the one hand, corporations and patronage, to which we have seen the workshop give birth, and, on the other, monopoly, which will be discussed in the following chapter.

Socialism, while protesting, and with reason, against this anarchical competition, has as yet proposed nothing satisfactory for its regulation, as is proved by the fact that we meet everywhere, in the utopias which have seen the light, the determination or socialization of value abandoned to arbitrary control, and all reforms ending, now in hierarchical corporation, now in State monopoly, or the tyranny of communism.

CHAPTER VI.

FOURTH PERIOD.--MONOPOLY.

Monopoly, the exclusive commerce, exploitation, or enjoyment of a thing.

Monopoly is the natural opposite of competition. This simple observation suffices, as we have remarked, to overthrow the utopias based upon the idea of abolishing competition, as if its contrary were association and fraternity. Competition is the vital force which animates the collective being: to destroy it, if such a supposition were possible, would be to kill society.

But, the moment we admit competition as a necessity, it implies the idea of monopoly, since monopoly is, as it were, the seat of each competing individuality. Accordingly the economists have demonstrated--and M. Rossi has formally admitted it--that monopoly is the form of social possession, outside of which there is no labor, no product, no exchange, no wealth. Every landed possession is a monopoly; every industrial utopia tends to establish itself as a monopoly; and the same must be said of other functions not included in these two categories.

Monopoly in itself, then, does not carry the idea of injustice; in fact, there is something in it which, pertaining to society as well as to man, legitimates it: that is the POSITIVE side of the principle which we are about to examine.

But monopoly, like competition, becomes anti-social and disastrous: how does this happen? By ABUSE, reply the economists. And it is to defining and repressing the abuses of monopoly that the magistrates apply themselves; it is in denouncing them that the new school of economists glories.

We shall show that the so-called abuses of monopoly are only the effects of the development, in a NEGATIVE sense, of legal monopoly; that they cannot be separated from their principle without ruining this principle; consequently, that they are inaccessible to the law, and that all repression in this direction is arbitrary and unjust. So that monopoly, the constitutive principle of society and the condition of wealth, is at the same time and in the same degree a principle of spoliation and pauperism; that, the more good it is made to produce, the more evil is received from it; that without it progress comes to a standstill, and that with it labor becomes stationary and civilization disappears.

% 1.--Necessity of monopoly.

Thus monopoly is the inevitable end of competition, which engenders it by a continual denial of itself: this generation of monopoly is already its justification. For, since competition is inherent in society as motion is in living beings, monopoly which comes in its train, which is its object and its end, and without which competition would not have been accepted,--monopoly is and will remain legitimate as long as competition, as long as mechanical processes and industrial combinations, as long, in fact, as the division of labor and the constitution of values shall be necessities and laws.

Therefore by the single fact of its logical generation monopoly is justified. Nevertheless this justification would seem of little force and would end only in a more energetic rejection of competition than ever, if monopoly could not in turn posit itself by itself and as a principle.

In the preceding chapters we have seen that division of labor is the specification of the workman considered especially as intelligence; that the creation of machinery and the organization of the workshop express his liberty; and that, by competition, man, or intelligent liberty, enters into action. Now, monopoly is the expression of victorious liberty, the prize of the struggle, the glorification of genius; it is the strongest stimulant of all the steps in progress taken since the beginning of the world: so true is this that, as we said just now, society, which cannot exist with it, would not have been formed without it.

Where, then, does monopoly get this singular virtue, which the etymology of the word and the vulgar aspect of the thing would never lead us to suspect?

Monopoly is at bottom simply the autocracy of man over himself: it is the dictatorial right accorded by nature to every producer of using his faculties as he pleases, of giving free play to his thought in whatever direction it prefers, of speculating, in such specialty as he may please to choose, with all the power of his resources, of disposing sovereignly of the instruments which he has created and of the capital accumulated by his economy for any enterprise the risks of which he may see fit to accept on the express condition of enjoying alone the fruits of his discovery and the profits of his venture.

This right belongs so thoroughly to the essence of liberty that to deny it is to mutilate man in his body, in his soul, and in the exercise of his faculties, and society, which progresses only by the free initiative of individuals, soon lacking explorers, finds itself arrested in its onward march.

It is time to give body to all these ideas by the testimony of facts.

I know a commune where from time immemorial there had been no roads either for the clearing of lands or for communication with the outside world. During three-fourths of the year all importation or exportation of goods was prevented; a barrier of mud and marsh served as a protection at once against any invasion from without and any excursion of the inhabitants of the holy and sacred community. Six horses, in the finest weather, scarcely sufficed to move a load that any jade could easily have taken over a good road. The mayor resolved, in spite of the council, to build a road through the town. For a long time he was derided, cursed, execrated. They had got along well enough without a road up to the time of his administration: why need he spend the money of the commune and waste the time of farmers in road-duty, cartage, and compulsory service? It was to satisfy his pride that Monsieur the Mayor desired, at the expense of the poor farmers, to open such a fine avenue for his city friends who would come to visit him! In spite of everything the road was made and the peasants applauded! What a difference! they said: it used to take eight horses to carry thirty sacks to market, and we were gone three days; now we start in the morning with two horses, and are back at night. But in all these remarks nothing further was heard of the mayor. The event having justified him, they spoke of him no more: most of them, in fact, as I found out, felt a spite against him.

This mayor acted after the manner of Aristides. Suppose that, wearied by the absurd clamor, he had from the beginning proposed to his constituents to build the road at his expense, provided they would pay him toll for fifty years, each, however, remaining free to travel through the fields, as in the past: in what respect would this transaction have been fraudulent?

That is the history of society and monopolists.

Everybody is not in a position to make a present to his fellow-citizens of a road or a machine: generally the inventor, after exhausting his health and substance, expects reward. Deny then, while still scoffing at them, to Arkwright, Watt, and Jacquard the privilege of their discoveries; they will shut themselves up in order to work, and possibly will carry their secret to the grave. Deny to the settler possession of the soil which he clears, and no one will clear it.

But, they say, is that true right, social right, fraternal right?

That which is excusable on emerging from primitive communism, an effect of necessity, is only a temporary expedient which must disappear in face of a fuller understanding of the rights and duties of man and society.

I recoil from no hypothesis: let us see, let us investigate. It is already a great point that the opponents confess that, during the first period of civilization, things could not have gone otherwise. It remains to ascertain whether the institutions of this period are really, as has been said, only temporary, or whether they are the result of laws immanent in society and eternal. Now, the thesis which I maintain at this moment is the more difficult because in direct opposition to the general tendency, and because I must directly overturn it myself by its contradiction.

I pray, then, that I may be told how it is possible to make appeal to the principles of sociability, fraternity, and solidarity, when society itself rejects every solidary and fraternal transaction? At the beginning of each industry, at the first gleam of a discovery, the man who invents is isolated; society abandons him and remains in the background. To put it better, this man, relatively to the idea which he has conceived and the realization of which he pursues, becomes in himself alone entire society. He has no longer any associates, no longer any collaborators, no longer any sureties; everybody shuns him: on him alone falls the responsibility; to him alone, then, the advantages of the speculation.

But, it is insisted, this is blindness on the part of society, an abandonment of its most sacred rights and interests, of the welfare of future generations; and the speculator, better informed or more fortunate, cannot fairly profit by the monopoly which universal ignorance gives into his hands.

I maintain that this conduct on the part of society is, as far as the present is concerned, an act of high prudence; and, as for the future, I shall prove that it does not lose thereby. I have already shown in the second chapter, by the solution of the antinomy of value, that the advantage of every useful discovery is incomparably less to the inventor, whatever he may do, than to society; I have carried the demonstration of this point even to mathematical accuracy. Later I shall show further that, in addition to the profit assured it by every discovery, society exercises over the privileges which it concedes, whether temporarily or perpetually, claims of several kinds, which largely palliate the excess of certain private fortunes, and the effect of which is a prompt restoration of equilibrium. But let us not anticipate.

I observe, then, that social life manifests itself in a double fashion,--PRESERVATION and DEVELOPMENT.

Development is effected by the free play of individual energies; the mass is by its nature barren, passive, and hostile to everything new. It is, if I may venture to use the comparison, the womb, sterile by itself, but to which come to deposit themselves the germs created by private activity, which, in hermaphroditic society, really performs the function of the male organ.

But society preserves itself only so far as it avoids solidarity with private speculations and leaves every innovation absolutely to the risk and peril of individuals. It would take but a few pages to contain the list of useful inventions. The enterprises that have been carried to a successful issue may be numbered; no figure would express the multitude of false ideas and imprudent ventures which every day are hatched in human brains. There is not an inventor, not a workman, who, for one sane and correct conception, has not given birth to thousands of chimeras; not an intelligence which, for one spark of reason, does not emit whirlwinds of smoke. If it were possible to divide all the products of the human reason into two parts, putting on one side those that are useful, and on the other those on which strength, thought, capital, and time have been spent in error, we should be startled by the discovery that the excess of the latter over the former is perhaps a billion per cent. What would become of society, if it had to discharge these liabilities and settle all these bankruptcies? What, in turn, would become of the responsibility and dignity of the laborer, if, secured by the social guarantee, he could, without personal risk, abandon himself to all the caprices of a delirious imagination and trifle at every moment with the existence of humanity?

Wherefore I conclude that what has been practised from the beginning will be practised to the end, and that, on this point, as on every other, if our aim is reconciliation, it is absurd to think that anything that exists can be abolished. For, the world of ideas being infinite, like nature, and men, today as ever, being subject to speculation,--that is, to error,--individuals have a constant stimulus to speculate and society a constant reason to be suspicious and cautious, wherefore monopoly never lacks material.

To avoid this dilemma what is proposed? Compensation? In the first place, compensation is impossible: all values being monopolized, where would society get the means to indemnify the monopolists? What would be its mortgage? On the other hand, compensation would be utterly useless: after all the monopolies had been compensated, it would remain to organize industry. Where is the system? Upon what is opinion settled? What problems have been solved? If the organization is to be of the hierarchical type, we reenter the system of monopoly; if of the democratic, we return to the point of departure, for the compensated industries will fall into the public domain,--that is, into competition,--and gradually will become monopolies again; if, finally, of the communistic, we shall simply have passed from one impossibility to another, for, as we shall demonstrate at the proper time, communism, like competition and monopoly, is antinomical, impossible.

In order not to involve the social wealth in an unlimited and consequently disastrous solidarity, will they content themselves with imposing rules upon the spirit of invention and enterprise? Will they establish a censorship to distinguish between men of genius and fools? That is to suppose that society knows in advance precisely that which is to be discovered. To submit the projects of schemers to an advance examination is an a priori prohibition of all movement. For, once more, relatively to the end which he has in view, there is a moment when each manufacturer represents in his own person society itself, sees better and farther than all other men combined, and frequently without being able to explain himself or make himself understood. When Copernicus, Kepler, and Galileo, Newton's predecessors, came to the point of saying to Christian society, then represented by the Church: "The Bible is mistaken; the earth revolves, and the sun is stationary," they were right against society, which, on the strength of its senses and traditions, contradicted them. Could society then have accepted solidarity with the Copernican system? So little could it do it that this system openly denied its faith, and that, pending the accord of reason and revelation, Galileo, one of the responsible inventors, underwent torture in proof of the new idea. We are more tolerant, I presume; but this very toleration proves that, while according greater liberty to genius, we do not mean to be less discreet than our ancestors. Patents rain, but WITHOUT GOVERNMENTAL GUARANTEE. Property titles are placed in the keeping of citizens, but neither the property list nor the charter guarantee their value: it is for labor to make them valuable. And as for the scientific and other missions which the government sometimes takes a notion to entrust to penniless explorers, they are so much extra robbery and corruption.

In fact, society can guarantee to no one the capital necessary for the testing of an idea by experiment; in right, it cannot claim the results of an enterprise to which it has not subscribed: therefore monopoly is indestructible. For the rest, solidarity would be of no service: for, as each can claim for his whims the solidarity of all and would have the same right to obtain the government's signature in blank, we should soon arrive at the universal reign of caprice,--that is, purely and simply at the statu quo.

Some socialists, very unhappily inspired--I say it with all the force of my conscience--by evangelical abstractions, believe that they have solved the difficulty by these fine maxims: "Inequality of capacities proves the inequality of duties"; "You have received more from nature, give more to your brothers," and other high-sounding and touching phrases, which never fail of their effect on empty heads, but which nevertheless are as simple as anything that it is possible to imagine. The practical formula deduced from these marvellous adages is that each laborer owes all his time to society, and that society should give back to him in exchange all that is necessary to the satisfaction of his wants in proportion to the resources at its disposal.

May my communistic friends forgive me! I should be less severe upon their ideas if I were not irreversibly convinced, in my reason and in my heart, that communism, republicanism, and all the social, political, and religious utopias which disdain facts and criticism, are the greatest obstacle which progress has now to conquer. Why will they never understand that fraternity can be established only by justice; that justice alone, the condition, means, and law of liberty and fraternity, must be the object of our study; and that its determination and formula must be pursued without relaxation, even to the minutest details? Why do writers familiar with economic language forget that superiority of talents is synonymous with superiority of wants, and that, instead of expecting more from vigorous than from ordinary personalities, society should constantly look out that they do not receive more than they render, when it is already so hard for the mass of mankind to render all that it receives? Turn which way you will, you must always come back to the cash book, to the account of receipts and expenditures, the sole guarantee against large consumers as well as against small producers. The workman continually lives IN ADVANCE of his production; his tendency is always to get CREDIT, contract DEBTS and go into BANKRUPTCY; it is perpetually necessary to remind him of Say's aphorism: PRODUCTS ARE BOUGHT ONLY WITH PRODUCTS.

To suppose that the laborer of great capacity will content himself, in favor of the weak, with half his wages, furnish his services gratuitously, and produce, as the people say, FOR THE KING OF PRUSSIA--that is, for that abstraction called society, the sovereign, or my brothers,--is to base society on a sentiment, I do not say beyond the reach of man, but one which, erected systematically into a principle, is only a false virtue, a dangerous hypocrisy. Charity is recommended to us as a reparation of the infirmities which afflict our fellows by accident, and, viewing it in this light, I can see that charity may be organized; I can see that, growing out of solidarity itself, it may become simply justice. But charity taken as an instrument of equality and the law of equilibrium would be the dissolution of society. Equality among men is produced by the rigorous and inflexible law of labor, the proportionality of values, the sincerity of exchanges, and the equivalence of functions,--in short, by the mathematical solution of all antagonisms.