– 12 –
What were the further consequences of the industrial revolution?
Big industry created in the steam engine, and other machines, the means of endlessly expanding industrial production, speeding it up, and cutting its costs. With production thus facilitated, the free competition, which is necessarily bound up with big industry, assumed the most extreme forms; a multitude of capitalists invaded industry, and, in a short while, more was produced than was needed.
As a consequence, finished commodities could not be sold, and a so-called commercial crisis broke out. Factories had to be closed, their owners went bankrupt, and the workers were without bread. Deepest misery reigned everywhere.
After a time, the superfluous products were sold, the factories began to operate again, wages rose, and gradually business got better than ever.
But it was not long before too many commodities were again produced and a new crisis broke out, only to follow the same course as its predecessor.
Ever since the beginning of this (19th) century, the condition of industry has constantly fluctuated between periods of prosperity and periods of crisis; nearly every five to seven years, a fresh crisis has intervened, always with the greatest hardship for workers, and always accompanied by general revolutionary stirrings and the direct peril to the whole existing order of things.
– 13 –
What follows from these periodic commercial crises?
First:
That, though big industry in its earliest stage created free competition, it has now outgrown free competition;
that, for big industry, competition and generally the individualistic organization of production have become a fetter which it must and will shatter;
that, so long as big industry remains on its present footing, it can be maintained only at the cost of general chaos every seven years, each time threatening the whole of civilization and not only plunging the proletarians into misery but also ruining large sections of the bourgeoisie; hence, either that big industry must itself be given up, which is an absolute impossibility, or that it makes unavoidably necessary an entirely new organization of society in which production is no longer directed by mutually competing individual industrialists but rather by the whole society operating according to a definite plan and taking account of the needs of all.
Second: That big industry, and the limitless expansion of production which it makes possible, bring within the range of feasibility a social order in which so much is produced that every member of society will be in a position to exercise and develop all his powers and faculties in complete freedom.
It thus appears that the very qualities of big industry which, in our present-day society, produce misery and crises are those which, in a different form of society, will abolish this misery and these catastrophic depressions.
We see with the greatest clarity:
(i) That all these evils are from now on to be ascribed solely to a social order which no longer corresponds to the requirements of the real situation; and
(ii) That it is possible, through a new social order, to do away with these evils altogether.
– 14 –
What will this new social order have to be like?
Above all, it will have to take the control of industry and of all branches of production out of the hands of mutually competing individuals, and instead institute a system in which all these branches of production are operated by society as a whole — that is, for the common account, according to a common plan, and with the participation of all members of society.
It will, in other words, abolish competition and replace it with association.
Moreover, since the management of industry by individuals necessarily implies private property, and since competition is in reality merely the manner and form in which the control of industry by private property owners expresses itself, it follows that private property cannot be separated from competition and the individual management of industry. Private property must, therefore, be abolished and in its place must come the common utilization of all instruments of production and the distribution of all products according to common agreement in a word, what is called the communal ownership of goods.
In fact, the abolition of private property is, doubtless, the shortest and most significant way to characterize the revolution in the whole social order which has been made necessary by the development of industry — and for this reason it is rightly advanced by communists as their main demand.