The young reader will ask, “But where was the Central Observation Bureau? Where was the professorial and student body which should have been recording these irregularities and producing plans for adjustment?”
There was no Central Observation Bureau. That did not exist for another century. That complex organization of discussion, calculation, criticism and forecast was undreamt of. Those cities of thought, full of serene activities, came into existence only after the organization of the Record and Library Network under the Air Dictatorship between 2010 and 2030. Even the mother thought-city, the World Encyclopædia Establishment, was not founded until 2012. In the early twentieth century there was still no adequate estimate of economic forces and their social reactions. There were only a few score professors and amateurs of these fundamentally important studies scattered throughout the earth. They were scattered in every sense; even their communications were unsystematic. They had no powers of enquiry, no adequate statistics, little prestige; few people heeded what they thought or said.
Maybe they deserved nothing better. They bickered stupidly with and discredited each other. They ignored or wilfully misunderstood each other. It is impossible to read such social and economic literature as the period produced without realizing the extraordinary backwardness of that side of the world’s intellectual life. It is difficult to believe nowadays that the writers of these publications, at once tediously copious and incredibly jejune, were living at the same time as the lively multitude of workers in the experimental sciences which were daily adding to and reshaping knowledge to achieve fresh practical triumphs. From 1812 C.E., when public gas-lighting was first organized, to the outbreak of the Great War, while the world was being made over anew by gas, by steam, by oil, and then by the swift headlong development of electrical science, while the last terræ incognitæ were being explored and mapped, while a multitude of hitherto unthought-of elements and compounds and hundreds of thousands of new substances were coming into use, while epidemic diseases were being restrained and driven back, while the death rate was being halved, and the average duration of life increased by a score of years, the social and political sciences remained practically stagnant and unserviceable. Throughout that century of material achievement there is no single instance of the successful application of a social, economic or educational generalization.
Because of this belatedness of the social sciences, the progressive dislocation of the refined if socially limited and precarious civilization of the more advanced of the eighteenth and nineteenth century sovereign states went on without any effectual contemporary understanding of what was straining it to pieces. The Europeans and the Americans of the early twentieth century apprehended the social and political forces that ravaged their lives hardly more clearly than the citizens of the Roman Empire during its collapse. Plenty and the appearance of security HAPPENED; then débâcle HAPPENED. There was no analysis of operating causes. For years even quite bold and advanced thinkers were chased by events. They did not grasp what was occurring at the time. They only realized what had really occurred long afterwards. And so they never foresaw. There was no foresight, and therefore still less could there be any understanding control.
4. Early Attempts to Understand and Deal with These Disproportions; The Criticisms of Karl Marx and Henry George
There are, however, one or two exceptions to this general absence of diagnosis in the affairs of the nineteenth and twentieth century of the Christian Era, which even the student of general history cannot ignore. Prominent among them is the analysis and forecasts of economic development made by Karl Marx and his associates.
In any case Marxism would have demanded our attention as a curious contemporary realization of the self-destroying elements in the business methods of the nineteenth century; but its accidental selection as the ostensible creed of revolutionary Russia after the Tzarist collapse gives it an almost primary importance in the history of kinetic ideas.
Karl Marx (1818-1883) was the son of a christianized Jewish lawyer of Treves, of considerable social pretensions; he had an excellent university career at Bonn and Berlin, assimilated the radical thought of his time and became the lifelong friend of the far more modest and gifted Friedrich Engels (1820-1895), a Lancashire calico dealer. Under the inspiration of Engels and the English socialist movement of Robert Owen, Marx elaborated the theory of economic development which is the substance of Marxism. It is embodied in a huge unfinished work, Das Kapital, and summarized in a Communist Manifesto (1848) drawn up by Engels and himself. (These, and indeed all his writings, together with an able digest and summary, are to be found in the Library of Historical Thought, vols. 17252-9.) His chief merit lies in his clear recognition of the ultimate dependence of social and political forms and reactions upon physical necessity. (“The Materialist Conception of History”.) His chief fault was his insane hatred of the middle classes (bourgeoisie), due mainly to his pose as a needy aristocrat and embittered, it may be, by his material and intellectual dependence on the trader Engels. His own attempts to apply his theories by conspiracy and political action were inept and futile. He died in London a disappointed and resentful man, quite unaware of the posthumous fame that awaited his doctrines. It was the organization of his followers into the disciplined Communist Party and the modernization of his doctrines by the genius of Lenin that made his name a cardinal one in history.
It is interesting to consider his general propositions now in the light of accomplished events and note the hits and misses of those heroic speculations — heroic, that is to say, measured by the mental courage of the time.
Nowadays every schoolboy knows that the essential and permanent conflict in life is a conflict between the past and the future, between the accomplished past and the forward effort. He is made to realize this conflict in his primary biological course. Therein he comes to see and in part to understand the continual automatic struggle of the thing achieved, to hold the new, the new-born individual, the new-born idea, the widening needs of the species, in thrall. This conflict he is shown runs through all history. In the old classical mythology Saturn, the Conservative head-god, devoured all his children until at last one escaped to become Jove. And of how Jove bound Prometheus in his turn every lover of Shelley can tell. We need only refer the student to the recorded struggles in the histories of Republican Rome and Judæa between debtor and creditor; to the plebeian Secessions of the former and the year of Jubilee of the latter; to the legend of Joseph in Egypt (so richly interpreted now through the minute study of contemporary Egyptian documents by the students of the Breasted Commemoration Fund); to the English Statute of Mortmain; to Austen Livewright’s lucid study of Bankruptcy Through the Ages (1979), to remind him of this perennial struggle of life against the creditor and the dead hand. But Marx, like most of his contemporaries, was profoundly ignorant of historical science, and addicted to a queer “dialectic” devised by the pseudo-philosopher Hegel; his ill-equipped mind apprehended this perennial antagonism only in terms of the finance of the industrial production about him; the entrepreneur, the capitalist, became the villain of his piece, using the prior advantage of his capital to appropriate the “surplus value” of production, so that his share of purchasing power became more and more disproportionately great.
Marx seems never to have distinguished clearly between restrictive and productive possessions, which nowadays we recognize as a difference of fundamental importance. Exploitation for profit and strangulation for dominance, the radical son and the conservative father, were all one to him. And his proposals for expropriating the profit-seeking “Capitalist” were of the vaguest; he betrayed no conception whatever of the real psychology of economic activities, and he had no sense of the intricate organization of motives needed if the coarse incentive of profit was to be superseded. Indeed, he had no practical capacity at all, and one is not surprised to learn that for his own part he never earned a living. He claimed all the privileges of a prophet and all the laxity and indolence of a genius, and he never even completed his great book.
It was the far abler and finer-minded Lenin (1870-1924, in power in Russia after 1917), rather than Marx, who gave a practical organization to the revolutionary forces of Communism and made the Communist Party for a time, until Stalin overtook it,