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Thought

The thought of our party is based on science.  This scientific method of inquiry is the product of thousands of years of human thinking and evolution.  Science seeks the explanation for phenomenon in matter.  The application of the principles of science in the social world is called social science.  Social science attempts to find the material conditions that explain social phenomenon. 

What are the material conditions of the world today?  The first and fundamental material condition of the world is that human society cannot exist without the production of the necessities of life.  In other words, humans need food, clothing, and shelter to exist.  In order to produce these necessities of life, humans work together.  The act of working together gives rise to a system of work relations.  This system of work relations is known as the economic system of a society.

The economic system is the foundation of every society and determines the nature and direction of every society.  For example, the economic system distinguishes the poor from the rich, the unemployed from the employed, the powerless from the powerful, and determines the relations between the oppressed and the oppressor.  In conclusion, the economic system determines the entire political, cultural, intellectual, legal, and moral structure of society.

Therefore, all the current problems of our society are really a product of our economic system.  In order to remedy our current problems, we must scientifically study the economic system and utilise that knowledge to change society.  In conclusion, the process of theory (nazariya) and practice (amal) brings one closer and closer to the truth (sachai).

The following program scientifically explains the capitalist economic system.  It shows that capitalism gives rise to poverty, inflation, and unemployment.  The second section argues that reforms cannot change the fundamental characteristics of the economic system, and therefore, a revolution is the only course of action available to people.  The third section argues that the working class is the most revolutionary class.  The last section argues that the victory of the working class is inevitable. 

1.       Capitalism creates Poverty, Mehangai, &Unemployment

2.       Revolution not Reform

3.       Workers are Revolutionary

4.    Victory is Inevitable

  (You can navigate between sections by using the above hyperlinks)

 

I.

Capitalism creates Poverty, Mehangai, &Unemployment

The economic system that dominates the world today is called capitalism.  Capitalism is based on private property.  Factories and farms are the private property of capitalists.  The capitalist hires workers. The workers manufacture products that the capitalist sells in the market to earn a profit.  Part of this profit is used for the luxury of the rich (palaces, cars, air-conditioners, trips abroad) and part is pushed back into production to buy new raw materials, new machinery, and new labour-power.  Thus, more products are produced, more profit is made, more factories are set up, the capitalist system expands and the cycle goes on.  In order to understand this cycle of production, we need to understand prices, wages, & profit.

How are Prices Determined?

All good shopkeepers know that prices are determined by demand and supply (Khareed o Farookht). 

 

Example 1.1 Lets assume that sellers bring 1000 pencils to the market but there are buyers for only 200 pencils.  In this case, all the sellers will run helter-skelter to sell their pencils.  The competition among the sellers to sell to a small market will lower the price of pencils. 

Sellers bring 1000 pencils          Buyers only want 200 pencils.

=  The result is that the price of pencils will fall

 

Example 1.2 Lets assume sellers bring only 200 pencils to the market. However, buyers for 1000 pencils show up at the market. In this case, all the buyers will run helter-skelter to buy pencils before they run out.  The competition among the buyers will raise the price of pencils. 

Sellers only bring 200 pencils          Buyers want 1000 pencils.

=  The result is that the price of pencils will rise

 

Example 1.3 Lets assume that sellers bring 500 pencils to the market and buyers also want 500 pencils.  In this case, the quantity of supply will be equal to quantity of demand and the price of pencils will not change. 

Sellers bring 500 pencils          Buyers also want 500 pencils

=  The result is that the price of pencils will not change

From this example it is clear that the price of a commodity is determined by supply and demand.  However, this is only half the story.  The next question is, “what determines demand and supply?”  The next section will show that the process of production determines demand and supply.  Furthermore, the process of production determines demand and supply in such a manner that price is equal to the average labour in a commodity.  In conclusion, the next section will show that the average labour in a commodity determines price.

Suppose that there are only two producers.  One produces pencils and the other produces pens. 

A pencil requires 1day of average labour to produce.
A pen requires 2 days of average labour to produce.

 

Example 2.1

Suppose that pencils cost 5 rupees and pens also cost 5 rupees. 

(produced in 1 day)=Rs 5  (produced in 2 days)=Rs 5

Thus, the price of pencils is equal to the price of pens.  It follows that one pencil is equal to one pen.  However, pencils only take one day to produce while pens take two days to produce.  Thus, pencil makers will be happy because with one days labour they can buy pens worth two days of labour.

 =                                  =

The pen makers will think, "I work for two days and make the same amount of money as the pencil maker who only works for one day.  There is no good profit to be made in pens.  I should make pencils instead.  The pencil producers work much less and make more money."

Thus, the pen makers will start to make pencils.  The supply of pencils in the market will increase.  Owing to the increase in the supply of pencils, the price of pencils will begin to fall and the price of pens will begin to rise.

 =                  =

  

Example 2.2

Now suppose that pencils cost 5 rupees and pens cost 20 rupees.

(produced in 1 day)=Rs 5 (produced in 2 days)=Rs 20

Thus, four pencils will cost the same as one pen.  However, four pencils are produced in four days and one pen is produced in only two days.  Thus, pencil makers will be unhappy because with four days labour they can buy pens worth only two days of labour.

 =                                  =

Now, the pencil maker will think, "I work for four days and make the same amount of money as the pen maker who only works for two days.  There is no good profit to be made in pencils. I should make pens. The pen makers work much less and make more money."

The pen makers will start to make pens.  The supply of pens in the market will increase.  Owing to the increase of the supply of pens, the price of pens will begin to fall and the price of pencils will begin to rise.

 =                =

  

Example 2.3

Now suppose that pencils cost 5 rupees and pens cost 10 rupees.

(prod. in 1 day)=Rs 5         (prod. in 2 days)=Rs 10

Thus, two pencils will cost the same as one pen.  At the same time, two pencils take two days of average labour and one pen also takes two days of average labour to produce.  Both pen and pencil makers will be content and there will be no incentive to switch production.

 =                                  =

Thus, the pen makers will continue to make pens and the pencil makers will continue to make pencils. There will be no change in the relative prices of commodities.

 =                =

What have we learnt from these examples?

We have learnt that when prices are above the average labour in a commodity, prices fall.  When the price of a commodity is above the average labour, capital immigrates into that branch of industry resulting in an increase in supply relative to demand and an eventual fall in prices.  Conversely, when prices are below the average labour in a commodity, prices rise.  When the price of a commodity is below the average labour, capital emigrates from that branch of industry resulting in decrease in supply relative to demand and an eventual rise in prices.  Finally, when prices are equal to the average labour in a commodity, they remain steady.  In the long run, owing to the immigration and emigration of capital price is equal to the average labour in a commodity.  In conclusion, demand and supply exert a pressure on prices such that price is equal to the average labour in a commodity.

The above example dealt with only two commodities: pencils and pens.  In the economy, however, there are thousands of commodities produced in several branches of industry.  Nonetheless, the principle remains exactly the same.  In the diagram below are symbols for construction, manufacture, residential construction, shipping, transport, forestry, and railways.  Whenever the price fluctuates above or below the average labour in a branch of industry, capital immigrates or emigrates from that branch of industry to or from other branches.  Through the flow of capital price fluctuates around the average labour in a branch of industry or commodity.

This does not mean that prices never fluctuate from average labour.  On the contrary, price fluctuations are part of the capitalist system and can sometimes go to such extremes that they bring about frightful devastation.  Like an earthquake they can cause capitalist society to shake to its very foundations by causing stock market crashes.  However, these fluctuations balance each other out and the average price in the long run equals the average labour-power in each commodity.  From the entire analysis above it follows that in the long run,

Price = The Average Labour in a Commodity = Mehnat

 

Mehnat Aur Mazdoori (Labour and Labour-Power)

 

Mehnat is the ability to do work.  When someone builds a house, or paints a painting, or writes a book the person has performed mehnat.  However, in a capitalist system, mehnat is transformed into mazdoori.  When a worker sells his mehnat to a capitalist the workers’ mehnat becomes mazdoori.  Therefore, mazdoori is mehnat that is performed for a wage. 

Why does the worker sell his mehnat to the capitalist?  The capitalist system is based on the monopoly of one class over all the means of production (factories, farms, industries, etc.).  In a capitalist system, workers cannot live unless they work for capitalists and earn a wage.   Workers are only able to purchase the necessities of life (food, clothing, shelter) from the wage paid by the capitalist.  In a word, the worker must work to stay alive. Therefore, workers have no other option but to sell their mehnat to the capitalist.  Thus, in the capitalist system mehnat becomes mazdoori.

This system of capitalist mazdoori destroys all satisfaction in mehnat.  The worker takes little or no interest in work.  During work the worker feels like his life is being sucked out of him.  The worker feels alienated.  Real life for the worker begins only after work is finished, only when mazdoori ceases. 

This capitalist system did not always exist.  The capitalist system, and the transformation of mehnat into mazdoori, evolved over a long period of continuous transformation.  There were four distinct stages in the development of history.

 

1. Primitive Society

Although the earth is believed to be about 6,000,000,000 (six thousand million) years old, humans have existed for only about 750,000 years.  During the first primitive societies humans lived in jungles, caves, and along riverbeds.  Humans learnt the skills of agriculture, fire, utilising stone implements, domesticating animals, hunting, fishing, gathering and so on.  At this stage in society classes did not exist.

 

2.  Slave Society

The further development of society brought prosperity and a growing distinction between the rich and poor.  Around 6,000 years ago the rich became powerful enough to be able to buy & sell the poor just like animals.  Society was divided into slaves and slave owners.  The mighty Pharaoh built an empire in Egypt on the economic basis of slave society.  Slave society was the first type of society based on class divisions.  In conclusion, the origins of class division lie in slavery. 

 

3. Feudal Society

With the further development of society, approximately two thousand years ago, slaves gradually became tied to the land.  Slaves that were tied to the land came to be called mazaras (serfs) and their masters came to known as feudal lords.  The mazaras (serfs) gave up a portion of their work to the feudal lord in terms of land rent and taxes.  With this rent or tax the feudal lord would raise and army and conquer other areas.  This was the economic basis of the Mughal Empire in India.  

 

4. Capitalist Society

The development of trade transformed feudal society into capitalist society approximately 400 years ago (since the 16th century).  In capitalist society, traders came to control the means of production & life. The mazara (serf), driven off the land, was compelled to sell himself to the capitalist in order to live.  Thus, the mazara (serf) was transformed into a factory worker.  Modern society is based on the capitalist system.

 

Capitalism is a Modern and Advanced Form of Slavery

During slave society the slave master bought the slave for his/her entire life and expected to receive a lifetime of services from the slave.  If the slave died too early, the slave owner would lose money.  Therefore, it was in the interest of the slave owner to ensure that the slave was reasonably well taken care off such that the slave would provide a lifetime of services.

During feudal society the mazara (serf) was tied to the land.  The mazara would transfer the extra production to the feudal lord in the form of rents and taxes.  In the feudal system the mazara had direct access to the land and his/her subsistence was ensured.

In modern capitalist society, the worker is not bought for his/her entire lifetime.  Furthermore, the worker does not have direct access to land or other means of production.  The worker must sell himself to a capitalist.  The capitalist only buys the worker for a short and designated period of time (8, 10, 12, 15 hours).  The capitalist can discharge the worker whenever he wants.  The capitalist system is more advantageous to the rich than the slave or feudal systems.

Unlike slave society, the capitalist does not have to buy the worker for his/her entire lifetime.  Therefore, the capitalist does not have to ensure that the slave is reasonably well taken care off.  Whenever the worker is of no more use to the capitalist, the capitalist can simply discharge the worker without losing any money.  On the other hand, the worker cannot leave the whole class of capitalists because otherwise the worker would starve to death.  Therefore, the worker is not the slave of an individual capitalist, but the slave of the entire capitalist class.  It is up to the worker to find his master in the capitalist class.  In conclusion, in slave society if slaves starved to death, the slave owners lost money.  In capitalist society if workers starve to death the capitalists do not lose any money.  Capitalism is a more advanced form of slavery.

Unlike feudal society, in capitalist society the worker has no direct access to land or other means of production.  Therefore, the worker is not ensured subsistence.  To live, the worker must sell himself to a capitalist.  This desperation of the worker ensures that the capitalist can buy the worker very cheap.  Unlike feudal society, in capitalist society the means of production are only utilised when a profit for the capitalists can be made from them.  For example, land will only be utilised to feed people if there is a profit to be made.  If there is no profit to be made, people may starve but land will not be utilised to feed people. 

In conclusion, capitalism is a modern and more advanced form of slavery.  At no point in the history of humanity have ordinary people been so powerless in relation to the rich as they are in capitalist society. 

 

How are Wages Determined?

In capitalist society workers sell their ability to do work to the capitalist.  In exchange for selling their ability to do work, the workers receive a wage.  Thus, as stated earlier, in a capitalist system mehnat is utilised as mazdoori (labour-power).  Mazdoori is a commodity that can be bought and sold in the market and wages are the price of mazdoori. Since mazdoori is a commodity, its price is determined in the same manner as the price of all other commodities.  We know from before that the price of a commodity is determined by demand and supply.  Demand and supply are determined by production and on average price is equal to the average labour in a commodity.  Wages are determined in exactly the same manner.  That is, wages are determined by demand and supply.  Demand and supply are determined by production of the worker.  And the average wage is equal to the average labour that goes into producing a worker.  In other words, wage is equal to the cost of production of the worker.  The following example demonstrates this argument in simpler terms,

Wages are determined by demand and supply (Khareed o Farookht). 

Example 3.1 Let us assume that 1000 workers come to the market looking for jobs.  Capitalists only need 200 workers.  Competition among the workers to get the job will lower the wages.

1000 workers apply for jobs             Capitalists want 200 workers

=  Wages will fall

 

Example 3.2 Lets assume 200 workers come to the market looking for jobs. However, capitalists need 1000 workers.  Competition among capitalists to get the workers will increase the wages.

 200 workers apply for jobs             capitalists want 1000 workers

=  Wages will rise

 

Example 3.3 Lets assume that 500 workers come to the market.  Capitalists also need 500 workers.  In this case, the quantity of supply of workers will be equal to quantity of demand and wages will not change. 

 500 workers apply for jobs             capitalists want 500 workers

=  Wages will not change

 

From this example it is clear that wages are determined by supply and demand.  However, this is only half the story.  The next question is, “what determines demand and supply?”  The prices of commodities prove that the process of production determines demand and supply in such a manner that price is equal to the average labour in a commodity.  It follows that the process of production of workers must determine the demand and supply of workers in such a manner that wage is equal to the average labour that goes into producing a worker.  In other words, if price is equal to the average labour in a commodity, wage must be equal to the average labour in producing a worker. 

What is the average-labour or cost of production of a worker?  The cost of production of a worker has two component parts: The physical sustenance and the education/training of the worker.

Physical Sustenance of the Worker

First, the cost of production of the worker includes the cost of physical sustenance (food, clothing, and shelter).  Furthermore, the cost of production must also include the cost of replacing worn-out workers with new workers.  Therefore, the cost of production of the worker not only includes the sustenance of the individual worker but also the working-class family so that the children are able to replace their parents in the factory.  The wear and tear of the worker is calculated in the same manner as the wear and tear of a machine.  The cost of production for a day is equal to the cost of physical wear and tear for a single day.  In conclusion, the cost of production of a worker includes the physical sustenance of the worker.

 

Education and Training of the Worker

Second, the cost of production of the worker includes the cost of education, schooling, and training of the worker.  Furthermore, the cost of production must also include the cost of replacing worn-out skilled workers with new skilled workers.  Therefore, the cost of production of ht worker not only includes the cost of education/training of the individual worker but also the family of the skilled worker so that the children are able to replace their parents in the factory.  The lower the education and training of a worker, the lower the cost of production of the worker. Therefore, the cost of production of a worker includes the cost of education/training of the worker.

The physical sustenance and education/training of the worker tells us the cost of production of the worker.  Let us look at the interaction of demand and supply with the cost of production of the worker.

Example 4.1

Suppose the cost of production of a worker is equal to Rs. 100 per day.

  = Rs. 100 per day

Example 4.2

Suppose the market pays workers a wage of Rs. 200 per day.  Better wage will improve the conditions of life of workers and they will be able to feed themselves and their children.  The health of those who are sick will improve and fewer children will die.  As a result, more workers will go to the market to find jobs increasing the supply of workers.  A higher price of labour also implies that machines become relatively cheaper.  Therefore the demand for labour will fall because capitalists will prefer to purchase machines instead of well-paid workers.  Thus, demand for worker will fall.  Owing to an increase in the supply and a fall in the demand for worker, wages will begin to fall. The process of supply and demand will force the wage back to the level of the cost of physical existence and training of the worker.

Example 4.3

Suppose the market pays workers a wage of Rs. 50 per day.  At this rate, workers will not be able to feed themselves or their children.  Workers will become beggars.  Thousands will become unemployed.  Many will become sick or commit suicide.  Many will simply starve to death.  The terrible hardship of the workers will decrease the supply of labour.  A lower price of labour also implies that machines become relatively more expensive.  Therefore the demand for labour will rise because capitalists will prefer to purchase workers instead of expensive machines.  Thus, demand for worker will begin to rise.  Owing to a decrease in the supply and increase in demand for workers, wages will gradually return to subsistence.  The process of supply and demand will force the wage back to the level of the cost of physical existence and training of the worker. 

Example 4.4

Now suppose that workers are paid Rs. 100.  At this level the wage is equal to the cost of physical existence and training of the worker.  In the capitalist system in the long-term wages can never rise above the cost of production of the worker because there is always a ready supply of workers willing to work for a lower wage. 

 

Fluctuations in Wages

The above example shows that supply and demand regulate wages in such a way as to bring wages equal to the cost of production of the worker.  The cost of production of the worker is equal to the physical existence and the education of the worker.  Does this mean that workers always receive enough to cover their physical existence and education? No! During economic depressions wages slip below the cost of production and may remain at this starvation level destroying the lives of millions of workers at the hands of starvation, poverty, and disease.  The laws of supply and demand will bring the wages back up to the cost of production only after the excess supply of labour is reduced.  Only after millions have starved.  For the capitalist system these starving workers are merely surplus-labour. Furthermore, just as with the price of commodities, this law of wages does not hold true for a single individual but only for all the workers over a period of time.  That is why millions of individual workers do not receive enough to be able to live.  In conclusion, the wages of the entire working-class fluctuate around the cost of production of the worker. 

 

Wage = Cost of Production of a Worker = Mazdoori

 

What is Profit?

We know from our previous analysis that

Price = Average Labour in a Commodity = Mehnat

Wage = Cost of Production of a Worker = Mazdoori

What does this prove?  It shows that commodities are created with the mehnat of workers but in return workers only get a mazdoori.  Thus, workers give mehnat and receive mazdoori.  The difference between mehnat and mazdoori is equal to profit that is taken by the capitalist.  Therefore, profit is that part of the workers mehnat that goes to the capitalist while the worker receives a mazdoori.

Example 5

Mehnat

Take a factory that makes cups.  Lets assume that a worker working on the assembly line makes 25 cups in a single day.  Each cup sells for Rs. 100.  Since “price is equal to the average labour (mehnat) in a commodity”.  This means that the worker gives mehnat of Rs. 2,500 every day.

 

               = 

 

 

 

Workers Daily Mehnat= 25 Cups = Rs. 2,500

 

Mazdoori

What does the worker get paid in return for a single days work worth Rs. 2,500?  The capitalist does not pay the workers Rs. 2,500 per day.  The worker gets paid around Rs. 100 per day.  Why?

Workers are not paid wages in accordance with the amount of labour they have put in a commodity. No.  Workers are paid wages in accordance with the “cost of physical existence and training of the worker”.  The capitalist system determines that Rs. 100 is sufficient to sustain the worker.  That is why while the worker gives mehnat of Rs. 2,500 the worker gets only Rs. 100.  The worker utilises his daily wage to buy the necessary means of subsistence that last his family for one day. The next morning the worker has to go back to the capitalist for more work in order to live. As long as capitalism exists, workers have no other choice but to work for a capitalist and receive a wage that does not reflect their mehnat but only reflects the amount they need to survive (mazdoori).

Workers Daily Mazdoori = Rs. 100

 

Profit

If workers only get Rs. 100 out of Rs. 2,500 that they have produced where does the rest of the money go?   The rest of the money becomes the profit of the capitalist.

Profit = 2,500 – 100 = 2,400

Thus, profit is that part of the workers’ mehnat that the capitalist takes away.  The workers transfer their surplus mehnat to the capitalist as profit.  Profit is equal to the mehnat that a worker gives minus the mazdoori that the worker takes.    Thus, profit is exploitation of the worker’s mehnat.

When the day is over the capitalist gets back the initial money advanced to the worker as well as a handsome profit. The capitalist has managed to multiply his money. In the next round, the capitalist will buy not one worker but 2, 3, or 4 workers with his new capital. With more workers the capitalist will be able to exploit more workers and make more profit. In this manner the capitalist system goes on in a vicious cycle of exploitation.

Profit for Capitalist = Mehnat – Mazdoori

 

What does the capitalist say?

The truth is that the basis of profit is exploitation of the workers.  The capitalists don’t want to admit this simple truth.  In order to obscure this simple truth and justify the exploitation of the workers, the capitalists have created all kinds of incorrect theories.  Here are some examples of capitalist theories to fool the workers.

I provided the capital

“But wait a minute”, says the capitalist.  “I provided the capital.  Without my capital there would be no production.  Since I gave the capital, I deserve the profit.  Profit is the return for my capital.”

Where did the capitalist get the initial capital?  Capitalists always argue that the initial capital was won from hard work.  But this is simply untrue.  History shows that the capitalist class consolidated its initial capital through loot and plunder during the period of colonialism.  In Africa 70 million slaves were taken from their homeland and made to work in the worst conditions to accumulate capital.  In fact, the major industrial ports of the modern world (such as New York, Liverpool, Manchester) became rich through slave trade.  Capitalism turned Africa into a game park for black skin.  In America nearly the entire Red Indian population was wiped out to make room for the colonialists.  In Latin America forced labour-camps were the foundation of prosperity for the capitalists.  In order to break into the markets of China, the colonialists produced and sold opium to the entire country.  As a result China became a nation of opium addicts.  In fact the colonialists fought several wars (called the opium wars) in order to ensure that their business of opium would not be disturbed.  In Indonesia the colonialists murdered hundreds of thousands of peasants to ensure an uninterrupted supply of rubber.  In India, the colonialists came as traders and through the East India company looted and robbed the riches of the sub-continent.  Their policies led to the famine and starvation of millions of peasants.  The puppets of the colonialists became the capitalists of the third world.  Therefore, history reveals that capital was not accumulated by hard work but by loot and plunder. Capitalists claim they have contributed capital to production.  In fact, they have merely contributed something that they robbed from the workers.  They have contributed nothing of their own.

“Fine, the origins of capital may lie in loot and plunder but today capitalists are making an honest living,” argue the capitalists.  This is incorrect.  We have shown in the previous section that profit is the mehnat of the worker that is taken away by the capitalist (profit = mehnat - mazdoori).  In other words, we have shown that profit is based on the exploitation of the worker.  Since capital is that part of profit that is reinvested, capital is based on the exploitation of the worker.  If capital is based on exploitation of the worker, the contribution of capital to the process of production is the contribution of previously exploited workers.  Thus, we end up with the same result.  When capitalists claim they have contributed capital to production, in fact, they have merely contributed something that they robbed from the workers.  They have contributed nothing of their own.  Thus, neither the origins nor the continuation of capital is based on anything other than exploitation of the working class.

In conclusion, the roots of modern day prosperity do not lie in hard work, but in loot, plunder, and brutal exploitation of the people of the world.   Capital came into this world dripping from every pore with the blood of workers and peasants.  Modern capital is merely the congealed blood of generations of workers.

 

I provided the ideas

“But wait a minute”, says the capitalist.  “I gave the ideas.  Without my ideas there would be no production.  Since I gave the ideas, I deserve the profit.  Profit is the return for my ideas.”

In the early stages of capitalism, the role of the inventor and the capitalist was not separated and certain capitalists were also inventors.  As capitalism developed these roles were separated and in modern capitalism ideas are bought and sold on the market just like commodities.   Today capitalists simply hire scientists and intellectuals to perform intellectual labour.  These scientists and intellectuals are paid a wage with extra bonuses to ensure their loyalty.  The ideas produced belong to the capitalists through patent rights.   Thus, scientist and intellectuals are simply highly paid workers for the capitalist. 

Secondly, nearly all the major scientific and technical breakthroughs in the second half of the twentieth century have occurred in connection with these government Research and Development departments (R&D). For example, computers, optics, satellites, internet, plastics, lasers, robotics are all the product of government owned R&D laboratories.  This is because the money required for research and development of new technology is out of the range of individual capitalists. 

This simple fact demonstrates that while ideas lead to better results for capitalists, ideas are NOT the source of profit.  If the source of profit were ideas, scientists and intellectuals would earn in terms of profit and be richer than capitalists.  But this is obviously not the case.  Capitalists reap a reward far higher than a simple scientist or intellectual.  The reward for a capitalist is higher because profit is not reward for ideas but reward for capital that exploits workers.  In a word, the source of profit is capital and the exploitation of workers. Profit is determined in proportion to the amount of capital invested.  In other words, the greater the capital, the greater the number of workers who can be exploited, and the greater the profit.  Ideas help to increase overall profits but the source of profit in a capitalist system is always capital without which no idea can be put into practice.  In conclusion, good ideas are not the source of profit.  The source of profit is capital. 

I Managed the Factory

“But wait a minute”, says the capitalist.  “I also performed mehnat. I managed the factory.  Without my managerial mehnat there would be no production.  Since I gave the managerial mehnat, I deserve the profit.”

In the early stages of capitalism and even today in small factories, capitalists are also managers of factories. At this stage the role of the manager and the capitalist is not separated.  As capitalism develops, these roles are more and more separated and in large-scale modern capitalism, managers are bought and sold on the market just like workers.   Managers are paid a wage with extra bonuses to ensure their loyalty.  Thus, managers are simply highly paid wageworkers for the capitalist and their function is to hold a whip over the workers and ensure high output.  In fact, the wage (mazdoori) of managerial work is determined in the same manner as the wage of all workers. The wage of managers is determined by the cost of production of a manager.  We know from experience that managers earn anywhere from 6,000 to 50,000 rupees a month.  But the capitalist does not earn a managerial wage the capitalist earns profit which is far greater.

This simple fact demonstrates that while good management leads to better results for capitalists, management is NOT the source of profit.  If the source of profit were management, managers would earn in terms of profit and might be richer than capitalists.  But this is obviously not the case.  When capitalists themselves manage factories, they reap a reward far higher than a simple manager.  The reward that a capitalist gets is far higher because profit is not reward for management, but reward for capital that exploits workers.

That is why small capitalist who often manage their own factories and work very hard, will earn much less than big capitalists who own 10 or 20 factories hire many managers and therefore don't even need to be present on a daily basis. The difference between the profit of the small and big capitalist does not reflect the amount of managerial work performed by each capitalist. The difference in earnings between the small and big capitalist reflects the amount of initial capital of each capitalist. The bigger capitalist is able to earn more profit because he is able to employ and exploit more workers.

Therefore, the source of profit is capital and the exploitation of the worker.  Profit is determined in proportion to the amount of capital invested.  In other words, the greater the capital, the greater the number of workers who can be exploited, and the greater the profit.  Management helps to increase overall profits but the source of profit in a capitalist system is always capital without which management has no role.  In conclusion, management is not the source of profit.  The source of profit is capital.

 


Conclusion

 

The three richest capitalists in the world own more money than 600,000,000 workers.  These three individuals are not 600,000,000 times smarter than ordinary workers. These three individuals do not work 600,000,000 times harder than the ordinary workers.

These three individuals are 600,000,000 times richer because they exploit hundreds of thousands of workers.

Profit does not reflect the labour, ideas, or management of the capitalist. Profit is based on the exploitation of the labour of other workers.

In conclusion, capital is money used to make more money by exploiting workers.  Profit is that labour (mehnat) that is done by the worker that ends up in the hands of the capitalist. The capitalists are able to exploit the workers because the capitalist class has a monopoly on the factories and lands of every society and workers are forced to work for capitalists in order to live.

In reality, the workers hold the world on their shoulders.  It is from their labour that the entire capitalist system functions and all the commodities of the world are produced.  Workers need to realize that:

Profit is exploitation of the worker

 

 

 
Why is there Poverty?

There are more than 45,000,000 people living in poverty in Pakistan.  In other words, one in every three persons cannot afford to eat two decent meals a day.  Our people face a terrible crisis of poverty.  This is reflected in the statistics on health and education.

 

Education 

Illiterate adults

64 %

Illiterate female adults

77 %

Primary school children drop out before grade five

50%

Children out of school

20 million

 

Health

Without access to health services 60 million

45 %

Without access to safe water

67 million

50 %

Without access to sanitation

89 million

67 %

Malnourished children (under 5)

54 million

40 %

Out of the 740,000 child deaths a year half of them are owing to malnutrition
There are nine soldiers for every one doctor and three soldiers for two teachers

The capitalists argue that if workers work harder and give better output to the factory the workers will be able to escape poverty.  All their lives workers run after the next pay-check to escape poverty.  But the dream of escaping poverty eludes them.  Why?

The capitalists assert that the interests of workers and the capitalists are identical.  They contend that the welfare of workers is directly linked to the welfare of the company.  That is, if the company earns more profit workers will live better lives.  While it is true that during periods of economic prosperity workers are paid better wages, however, the fact remains that the increase in the wages of the workers is infinitely smaller in comparison to the increase in the profit of the capitalists.  In other words, when the economy is doing well wages may rise, but the profits of capitalists rise many times faster.

 Profit =          

 

Wages =     

Even during periods of prosperity, the social chasm that divides workers from capitalists widens.  The distribution of wealth between the rich and the poor becomes more unequal.  The social power of the capitalists over the workers increases.  The capitalist can now buy more workers.  The social position of the workers becomes worse and the working-class is forced down still another degree below the capitalist.  Thus, even when wages occasionally rise workers become more dependent on capitalists.  In other words, the material position of workers improves only at the cost of their social position.  These are the golden chains by which the capitalist enslaves the workers. 

The Law of Concentration of Capital

In addition to exploiting workers, the big capitalists compete against the small capitalists.  The big capitalists have many advantages owing to their larger size, and are, therefore, able to produce more efficiently.  The smaller factories simply cannot compete with the larger and more efficient large factories.  The small capitalists go bankrupt and are bought out by the big capitalists.  In capitalism the big fish eat the small fish.  However, this economic competition has the inadvertent affect of increases the concentration of capital and wealth.

As the big capitalists become ever more powerful and control ever larger armies of workers, the concentration of capital reaches a stage of monopoly.  A handful of capitalists come to control all the wealth of the world.  This is called the law of concentration of capital and results in monopoly capitalism.

The world's 358 capitalists have more money than half the people of the world.  In fact, the richest 20% control 85% of the world’s income while the poorest 80% live on the other 15% of the world’s income.  The poorest 20% live on only 1.4 percent of the world’s income.  Inequality is worse than what it was 45 years ago and is continuously rising.

We live in a world today where about 50 banks control approximately 40,000 MNC's.  These 40,000 MNC’s control 250,000 foreign affiliates.  These 250,000 foreign affiliates control more than two-thirds of global capital.  Thus, 50 banks more or less control the overwhelming majority of the world’s capital through a web of companies that spans the globe.

The top 1% capitalist companies control 70 to 80 percent of world trade. 40% of all world trade is merely trade between these giant companies.  The same 1 per cent own 80 per cent of all international investment, account for 70% of the global trade, own half the total stock of foreign direct investment (FDI), and account for 30 per cent of the world’s output.

The top 15 capitalist companies control the world market in 20 key commodities: 90% of the world’s trade in iron ore, wheat, timber, cotton, tobacco, pineapples; 80% of the world’s trade in copper, tea, and coffee; 70% of the world’s trade in rice; and 60% of the world’s trade in oil.  The top 5 capitalist companies account for 70% of consumer durables, 58% of cars, trucks, and airlines, 55% of aerospace, 53% of electronic components, and 50% of oil, steel, personal computers and media industries. The top 200 multinational companies employ less than 0.05 per cent of the world’s population but control over a quarter of the world’s Gross Domestic Product.

The top capitalist companies have more money than all the people of entire countries.  For example, the combined sales of the world's 10 largest corporations in 1991 were greater than the combined GNP of the world's 100 smallest countries. General Motors (car manufacturers) sales are more than the combined income of Pakistan, Tanzania, Ethiopia, Nepal, Bangladesh, Uganda, Nigeria, Kenya: countries that together have 500 million people and represent a tenth of the global population. WalMart (retailers), the largest capitalist company in the world, is larger than 161 countries including Israel, Greece and Poland.  Mitsubishi is bigger than Indonesia (fourth most populous country in the world). Toyota is bigger than Norway; Ford is bigger than South Africa, and Philip Morris is bigger than New Zealand.  The top 200 possess an economic clout almost double that of the poorest four-fifths of humanity.  Ninety percent of these multinational companies are based in the West.  This is the reason why the US and Europe are able to dominate smaller countries like Afghanistan, Palestine, and Pakistan.  The power of capitalist-class over the working-class has become a super-monopoly.  The capitalist system has created an empire of multinational companies.  Capitalism has become Imperialism.

In conclusion, the growth of capital inevitably increases the power and rule of the capitalist class over the working class.  The rich get richer and the poor poorer.  The rich live in palaces and the poor live in mud huts.  The rich wear expensive designer clothes and the poor do not have clothes to wear.  The rich eat in expensive restaurants and hotels and the poor beg on the streets.  Poverty is the increasing inequality between the rich and the poor.  Capitalism increases inequality and the antagonism between the poor and the rich.  The roots of poverty lie in the capitalism.

Capitalism leads to growing inequality and poverty.

 

Why is there Mehangai? (Inflation)

 

Mehangai (inflation) is said to occur when prices rise.  During periods of mehangai poor people are not able to buy the necessities of life with their meagre incomes.  Mehangai (inflation) grinds the worker into poverty.  In the last 20 years wages have not kept pace with the rise in prices of commodities.  That is why one of the central demands of workers is the elimination of mehangai.  In order to eliminate mehangai first we have to understand its root causes.  We must understand money.

What is Money?

Money is merely a piece of paper that is used to measure wealth. The central purpose of money is to facilitate trade. In earlier times gold, silver, cows, and even women were used as money.  However, these items were difficult to transport.  Gradually, with the development of trade, pieces of paper indicating the value of gold replaced gold. With the development of modern governments and central banking these informal pieces of paper were standardized and converted into a national currency. The national currency of Pakistan is the “Rupee” which was handed to us from British colonial times.

What is Mehangai?

As stated earlier mehangai is said to occur when prices rise.  However, this is only a superficial definition.  For example, if the price of one commodity rises and the rest remains the same, can we say that mehangai has occurred?  Obviously not!  Therefore, only when the price of the majority of commodities increases is mehangai said to occur.  In more precise words, mehangai is not a rise in prices but a rise in the general level of prices.  The rise in the general level of prices may also be re-interpreted as a drop in the value of the currency.  Both imply that the rupee cannot buy as much as it used to. 

 

What determines how much a rupee can buy?

As with everything else in the capitalist economy, the worth of the rupee is also determined by the supply and demand of rupees. To put it simply, the worth of the rupee depends on the total rupees in circulation in relation to the total worth of goods produced by the economy.

  Example 6.1

 

Rupees 1000 in circulation

To purchase

Goods worth Rs. 500

Suppose that the economy produces goods worth Rs. 500.  At the same time the total rupees in circulation are 1,000.  This means that there are too many rupees in circulation to purchase too few goods.  Nearly all the sellers in the market will begin to raise prices.  The general level of prices will rise and the value of the rupee will fall. Thus, mehangai will occur.

 

Example 6.2

 

Rupees 500 in circulation

To purchase

Goods worth Rs. 1,000

Suppose that the economy produces goods worth Rs. 1000.  At the same time the total rupees in circulation are 500.  This means that there are too few rupees in circulation to purchase too many goods.  Nearly all the sellers in the market will begin to reduce prices.  The general level of prices will fall and the value of the rupee will rise.  Thus, deflation will occur.  In Pakistan deflation occurs very rarely.

 

Example 6.3

 

  

Rupees 500 in circulation

To purchase

Goods worth Rs. 500

Suppose that the economy produces goods worth Rs. 500.  At the same time the total rupees in circulation are also 500.  This means that there are as many rupees in circulation to purchase the same quantity of goods.  Sellers will not change their price. The general level of prices will remain unchanged and the value of the rupee will not change.

 

Conclusion:

Mehangai occurs when the rupees in circulation grow faster than the increase in the production of goods.  In simple words, inflation occurs when there is too much money chasing too few goods.

 

Why Does Inflation Occur in Pakistan?

There are basically two reasons for inflation in Pakistan: dependency on international capital and government and military spending.

I. Dependency on International Capital

The first reason for inflation is the economic dependency of Pakistan on the West.  The British colonialists shaped the Pakistani economy in accordance with the requirements of Britain’s industrialisation.  The area that is today Pakistan was a raw material producer of cotton.  Despite the departure of the British this economic relationship with the international capitalist market has not changed.  As a result Pakistan, like most of the Third World, never developed a self-sufficient economy.  Till today the smooth running of our economy is heavily dependent on imports from the West.  These imports range from expensive luxury items to basic raw materials such as oil.  Owing to the constant development of high technology in the West the relative prices of commodities produced by the Third World keep falling.  In simple words, the development of technology lowers the price of our cotton in the international market.  This process is known as declining terms of international trade.  When the price of imports increases the cost of production in Pakistan also increases.  For example, an increase in the price of oil increases the cost of production of nearly all branches of industry.  With higher costs the Pakistani capitalists simply raise the price of their commodities.  This leads to the first type of inflation called “cost-push inflation”.  Cost-push inflation is caused owing to the fact that Pakistan occupies a subservient position with respect to the international capitalist economy.

II. Government and Military Spending

Inflation occurs when the rupees in circulation are greater than the products in the market.  In simpler words, inflation occurs when the government prints more money than the products in the market.  Why does the government overprint money?

The government makes expenditures on maintaining its military and bureaucracy.  The Pakistani government always spends more than it earns through taxes because Pakistani capitalists always avoid paying their taxes. In order to cover their expenditures the government simply prints more money.  However, the output from this extra production is not placed on the market.  For example, in the armament industry wages are paid but the products (weapons) are obviously not placed on the market.  In other words, the production of armaments increases the rupees in circulation but does not increase the number of goods available on the market.  In other words, government expenditures that are not financed through taxes results in a situation in which the rupees in circulation grow faster than the products available on the market.  Owing to government expenditures that are not financed through taxes the rupees in circulation grow faster than the increase in the products available on the market and inflation occurs.  This type of inflation is called demand-pull inflation

The conclusion is obvious.  If these government expenditures were paid through taxes there would be no overprinting of money and no inflation. This situation does not exist in any capitalist country even in those countries where the tax rate is greatest.  Even in the USA total military expenses are not covered by taxation and as a result there is a permanent tendency towards inflation in capitalist economies.

In conclusion, the main causes of inflation in Pakistan are:

1.        Economic Dependency on the West

2.        Government & Military Expenditures

 

The Impact of Mehangai on the Rich and Poor

The irony is obvious.  Inflation is a product of the fact that our capitalists are subservient to the West, that our capitalists avoid paying their taxes, and that our government and military overspends on themselves.  In other words, the capitalists, the government, and the military are responsible for the creation of mehangai.  The workers and peasants have no role in creating mehangai.  Yet the workers and the peasants are the ones who suffer from mehangai.

The fact is that mehangai robs the poor and benefits the rich.  During periods of mehangai the capitalists simply raise the price of the commodities they are selling.  On the other hand, workers always find it hard to raise their wages.  Therefore, during periods of mehangai the real wages of workers falls and their income now buys much less than before. The result is that during periods of inflation the proportion of social wealth paid to workers declines in comparison to the proportion of social wealth paid to capitalists.  In other words, relative to the capitalist the worker becomes poorer. In other words, mehangai (inflation) is simply another name for a drop in the real income of the population and the impoverishment of the workers.  Mehangai increases the gap between the rich and the poor.  In conclusion,

Mehangai robs the poor and benefits the rich. Mehangai is an intrinsic feature of capitalism


Why is there Unemployment?

Unemployment is one of the most pressing problems of today.  Work is a prerequisite of life.  Unemployed people risk starvation and death.  Yet we find hundreds and thousands of people unable to find work. 

The capitalists argue that in order to reduce unemployment the economy needs investment.  They argue that in order to increase investment business confidence needs to improve.  Business confidence will improve if workers work harder for less money.  If workers work harder companies will do better, the general economic situation will improve, and unemployment will decrease.  In simple words, they claim that the level of employment is the responsibility of the workers themselves.  This is incorrect.  The level of employment is determined by factors that are outside the influence of workers.

Employment is determined by two factors: investment and technology.  All other things being constant, an increase in investment leads to less unemployment.  When capitalists invest more money to expand production new jobs are created.  On the other hand, an increase in the level of technology increases unemployment.  In mathematical terms employment is positively proportional to investment and negatively proportional to the introduction of new technology.

 

                                                                      Investment

Employment          µ         ­­­­­­­­---------------------

                                              Technology

 

In simpler words,

1.        Investment decreases unemployment

2.        New technology increases unemployment

 

What is the Impact of New Technology on Employment?


A machine can produce more efficiently and more cheaply because machines enable one worker to accomplish the work of 5, 10, 20, or even 100. For example, one bulldozer or earthmover can perform the task of hundreds of men with spades.

 

We know that capitalists are in economic competition with each other.  This economic competition forces capitalists to introduce new technology, machinery, and new methods of production in order to produce more cheaply and defeat competitors.  Therefore, competition and rivalry between capitalists leads to the continuous introduction of machines.  However, the introduction of new machines displaces workers from employment.  For example, instead of hiring 100 workers, the capitalist will hire one bulldozer with one worker.  The bulldozer will replace hundreds of workers and save the capitalist money.  In conclusion, the introduction of new technology replaces workers and creates unemployment.   

The introduction of new technology and the spread of unemployment create desperate conditions.  Unemployment forces the workers to compete against each other.  Workers agree to starvation wages, pledge to work harder and longer hours.  The result is the more he works and competes against his fellow workers, the more he compels them to compete against him.  The more he works, the more he compels others to offer themselves on the same wretched conditions as he does.  In the final analysis, the worker competes against himself as a member of the working class.  Like gladiators in an arena, workers work each other to death for the luxury of the capitalist. 

Machine Making Jobs

Capitalist economists argue that those workers who have lost their jobs because of the introduction of machinery can always find new and better jobs in the making of machines themselves.  But this is not correct.  A machine is a labour-saving device.  That means that if a machine takes 100 hours to build it must save more than 100 hours of labour to be useful. Therefore, a machine by definition lowers the number of workers required for a job, thereby, reducing employment.  Second, the most diverse machines are now used to make more machines.  The workers employed in machine factories can only play the role of very stupid machines alongside of the highly ingenious machines that build machines.  Modern industry always simplifies and cheapens skilled or complex tasks.  Skilled workers are no longer required.  This lowers the cost of production of the average worker.  In conclusion, the introduction of machinery increases competition and lowers the cost of production of the average worker, thereby lowering wages to starvation levels.  The introduction of machines always reduces employment and lowers wages. As work becomes more unsatisfactory and repulsive, wages continue to decrease.  The forest of outstretched arms, begging for work, grows ever thicker, while the arms themselves grow ever leaner.

This means that in capitalist society workers grow to hate the introduction of new technology because it only benefits a tiny elite and destroys the lives of the vast majority.  Technological changes are strongly resisted by the working class and have to be introduced forcefully by bludgeoning the resistance of the working class.  This is a powerful disincentive against innovation and change embedded in capitalist society.

The Economic Cycle

The interaction of investment and new technology creates a periodic crisis in the economic activity of capitalist society.  The economy goes through cycles of good periods and bad periods.  The good periods are called economic booms and the bad periods are called economic depressions.  In the good periods unemployment is relatively low and in bad periods unemployment is high.  These economic cycles are an integral part of the capitalist system and have nothing at all to do with the work of workers.  They have to do with the interaction of investment and technology. 

                                         Boom                                  Boom

                     Depression                      Depression

While the introduction of new technology increases the productive capacity of society, it also creates unemployment.  Unemployed reduces market demand creating an economic crisis.  In other words, the very process that expands productive capacity simultaneously destroys the capacity to buy. 

In simpler words, the introduction of new machines increases the production and at the same time replaces workers.  People cannot purchase commodities in the market because machines have replaced their jobs and they are unemployed.  Thus, factories begin to produce more than people can purchase.  This creates a paradox.  People need food, clothing, medicine, housing but they don’t have the money to buy these things.  Meanwhile, factories have the capacity to produce an enormous number of these commodities but these factories are not utilised because capitalists cannot make a profit if people can’t buy these commodities.  Thus, factories are lying idle while people are begging for work.  Food is wasted while people are begging for food.  Thus, in the midst of plenty capitalist society produces poverty, unemployment, and misery.  

Unemployment can never be eliminated in the capitalist system

The introduction of new technology combined with period economic crises destroys the social position of the worker.  The competition between workers ensures that wages never rise above the cost of the production of the worker (mazdoori).  As long as there are unemployed people that the capitalist can hire, as long as there is fresh blood to exploit, the capitalists can bid down the wage of the worker to the level of the cost of production of the worker (mazdoori).  Thus, unemployment is an automatic mechanism in the capitalist system that ensures that wages never rise above the cost of production of the worker (mazdoori).

If unemployment were eliminated, the capitalists would not be able to force the workers to work for such a low wage.  In other words, if all workers were guaranteed employment the capitalists would never be able to force the workers to work in slave like conditions for starvation wages.  The capitalists would never be able to exploit the workers and make profit.  Unemployment is central to the entire capitalist economic system. In conclusion, the reason why one half of humanity is left to starve and beg on the streets is so that the other half of humanity can be exploited and worked to death in the factories.  In the history of all countries, there is not a single capitalist country that has ever eliminated unemployment on a sustained basis.  Therefore, unemployment can only be eliminated with the overthrow of the capitalist system.

·         Unemployment is an intrinsic part of the capitalist system.


Conclusion

The capitalist system is based on the exploitation of the working class and gives rise to poverty, inflation, and unemployment.  The basis of capitalism is private property.   The capitalist economic system based on private property functions according to certain economic rules.  The capitalist system can never reverse the tendency towards the concentration of capital.  In simpler words, the capitalist system inevitably leads to growing inequality between the rich and the poor.  In conclusion, we have learnt two basic lessons from this section. 

1.        First we have learnt that profit is based on the exploitation of the worker. 

2.        Second, we have learnt that capitalism gives rise to poverty, mehangai, and unemployment.

 The question is “What Is To Be Done?”


II.

Revolution Not Reform

The capitalist system is based on exploitation and creates inequality, poverty, mehangai, and unemployment.  Capitalism is based on private property.    In capitalism factories are the private property of capitalists and the production from these factories only benefits a tiny elite.  Therefore, private property is simply the legal name for the enslavement of the worker in the capitalist system.  It follows that the liberation of workers is only possible by destroying the system of private property and building a system of social and collective property.  When factories and farms are owned and run on a collective basis production will benefit the vast majority of people.  In conclusion, workers can only be free from capitalist slavery when factories and farms are owned and run on a social and collective basis.  Such a system is known as Socialism. 

CAPITALISM               VS.              SOCIALISM

  (Benefits the Rich)                                  (Benefits Workers)

                                                      

The transition from capitalism to socialism will change the entire economic, political, legal, and cultural system of society.  Socialism means that workers will be in control of their own destiny.  Socialism will eliminate all the ills of capitalism including poverty, mehangai, unemployment, inequality, greed, and corruption.  Socialism will destroy feudalism and give land to the poor peasants.  Socialism will provide universal and free health care, education, recreation thereby creating the foundation for the many-sided development of all individuals. Socialism will create a classless society based on equality and democracy. 

Capitalists, feudal lords, and the civil-military bureaucracy are deeply opposed to socialism.  The ruling classes are unwilling to let go of the privileges derived from the exploitation of the working class through the capitalist system.  Therefore, they are opposed to the concept of a society based on equality and democracy.  It follows that capitalism can only be overthrown against the wishes of the rich.  In order to preserve the capitalist system the rich have trained and hired second-rate intellectuals to devise all kinds of ‘clever’ arguments against revolution.  These arguments support Reformism.  While reformist intellectuals have perfected the art of fooling people with convoluted arguments, reformist politicians have perfected the art of dressing up reforms as revolution.  In a word, they have perfected the art of cheating people with the slogan of revolution.  That is why it is imperative for workers to understand first why reforms cannot solve the fundamental problems of the people, and second, how to differentiate reformists from true revolutionaries.

What is a Revolution?  What is a Reform?

A revolution occurs when one class overthrows another class.  For example, in capitalist society the capitalist class dominates.  Therefore, a revolution in a capitalist society will overthrow the political power of the capitalist class and establishing the political power of the working class.  In other words, a revolution is said to occur when the political power of the capitalist class is overthrown by the political power of the working class. For example, the events in Russia in 1917, China in 1949, Korea in 1950, Cuba in 1959, and Vietnam in 1975, were examples of revolutions.

A reform is said to occur when the political power of the capitalist class is not overthrown but the capitalist class makes certain concessions to the working class.  In a word, the capitalist class continues to rule society with certain concessions to the workers.  For example, social security, old age benefits, subsidized education, subsidized health care, and so on are all examples of reforms.  The welfare states set up in the West after the Second World War are also examples of reforms.


Reformism

Reformists argue that a Welfare State can solve the fundamental problems of the people, that is, welfare states can solve the problems of hunger, inequality, poverty, illiteracy, mehangai, and unemployment. The reformists look towards the welfare states of Sweden, Norway, Britain, France, and so on as models for Pakistan.  All the mainstream political parties such as the Pakistan Peoples Party, the Muslim League, and so on are basically reformist parties.  Religious parties, such as the Jamaat-e-Islami or the Jamiat-e-Ulema-e-Islam, are also essentially reformist parties.  The so-called ‘Islamic System’ of the religious parties is based on “capitalism with a welfare state”.  The only difference is that religious parties justify “capitalism with a welfare state” in religious terms.  Non-Governmental Organisations (NGOs) are also reformist institutions because they do not work to overthrow the capitalist system but to reform the capitalism system.  Therefore, reformism is a political tendency with many followers.

In the final analysis all these reformist organisations support capitalism and represent the interests of the rich.  Whenever public protests against injustice grow these organisations promise reform.  Initially workers believe these promises and make sacrifices to promote these organisations, parties and politicians.  However, these promises never materialise and workers soon discover that these promises were false.  As a result people are bitterly disappointed when despite enormous sacrifices nothing changes and as a result workers grow disillusioned with false promises.  Workers are slowly realising that they incorrectly placed their trust in reformism and reformist parties.  In other words, political practice regularly furnishes new proof of the futility of reformism. 

Welfare State

In a welfare state political power remains in the hands of the capitalists but they make certain reforms to benefit the poor (for example, free education, health, labour reforms, unemployment benefit, old age benefits, pensions, freedom of speech assembly and organisation, and so on).  As long as political power remains firmly within the hands of the capitalist class, they can take back these reforms whenever the need arises.  Thus, as long as political power remains in the hands of the capitalists these reforms always remain temporary.

Welfare states were set up in the West after World War II.  These welfare states were set up in order to stem the tide of the growing workers movement. Imperialist countries, such as Britain, France, Germany, utilised a small part of the super-profits extracted from the workers of the world to provide certain provisions to workers in order to bribe the labour leadership not to overthrow the capitalist system.  Once the revolutionary wave subsided, these provisions were taken away.  This experience proves that workers remain at the mercy and charity of the capitalist class in a welfare state.

Furthermore, the imperialist countries exploit oppressed countries and are able to extract super-profits.  From these super-profits it is relatively easy to set up a welfare state.  On the other hand, Third World countries transfer their extra earnings to the West through capital flight, debt repayment, profit reparation and so on.  Since imperialist countries multinational companies, international economic institutions, and international banks exploit third world countries, it is even harder for a third world country to set-up a welfare state.

Last and most importantly, a welfare state cannot alter the fundamental economic laws of capitalism.  A welfare state cannot reverse the law of concentration of capital.  In other words, the welfare state cannot change the fact that in the capitalist system the big fish eat up the small fish.  While it is true that from 1950 to 1980 owing to the welfare state the standard of living of the workers in Britain, France, and Germany improved.  Nonetheless, the welfare state could not reverse the growing inequality between the rich and the poor even in these countries.  Despite the welfare state inequality is worse today than in 1945.  This is because while the income of workers increased, the income of capitalists increased thousands of times faster.  Thus, despite the welfare state the social control of capitalist class over the working class increased.  The capitalists showed the strength of their social control after 1980 when they took back all the welfare reforms and destroyed the workers’ movement.  Today the standard of living of the workers of the West is rapidly declining.

In conclusion, the welfare state can only temporarily slow down the tendency towards greater and greater inequality in the world but it can never reverse the growing inequality between rich and poor.  Owing to the fact that government spending increases, the welfare state may cause growing inflation.  The welfare state can temporarily lower unemployment but it cannot eliminate unemployment.  In conclusion, the welfare state cannot solve the fundamental problems of the people.

If a welfare state cannot solve the fundamental problems of the people, why do governments set up welfare states at all?  The whole thing reduces itself to bribery.  Through a welfare state the capitalists attempt to bribe and corrupt labour leaders.  In exchange for these few provisions labour leaders are expected to sing praises of capitalism and the capitalist class. The fact is that the wealth of the world is made from sweat and blood of workers.  A welfare state is merely a few crumbs thrown to the workers to create the illusion that workers are not slaves.

NGOs: A New Form of Reformism

After the 1980s the imperialist countries introduced a new form of bribery to weaken the workers movement.  The World Bank and other international donor agencies began to encourage and fund reformist organisations on an unprecedented scale.  Every year billions of dollars were given to create to strengthen reformist organisations at the expense of revolutionary organisations.  The imperialists created hundreds and thousands of soft jobs, charities, cultural societies, aid organisations, and reform societies to lure away activists from revolutionary organisations.

NGOs also served a second purpose.  From 1950 to 1980 the imperialists made several concessions to the growing workers movement.  After 1980 the imperialists moved to take these concessions back.  While the state was taking away all these provisions, the World Bank increased funding of NGOs to divert the efforts of activists into other relatively less important issues.  This act ensured that the social anger created by taking away these social provisions would not be mobilised against imperialism and the local ruling classes.

Therefore, NGOs act both as a buffer and a diversion.  They acted as a buffer in so far as they helped to curtail the expression of social dissent within a reformist framework.  They acted as a diversion in so far as they helped to re-channel criticism against the ruling class in other relatively harmless directions. 

Should Workers Struggle for Reformist Demands?

From the above argument we understand that reforms (welfare state, “Islamic system”, or NGOs) cannot solve the fundamental problems of the people.  Does this mean that workers and revolutionaries should not struggle for reformist demands?  Absolutely not!  On the contrary, since reforms express the direct and immediate interests of the working class workers should build their unity and power by working for reforms.  But while working for reformist demands they should never fall under the illusion that reforms or reformist organisations can destroy the capitalist system.  While working for reformist organisations workers should not place their trust in reformist leaders.  Workers should place their trust in those leaders that advocate and work to overthrow the capitalist system.  While working for reforms workers should explain to people that the fundamental problems of the people cannot be solved without overthrowing the capitalist system.  While working for reforms workers should promote the idea of revolution. 

In simple words, workers should be clear that reforms can improve the conditions of slavery, but reforms cannot make a slave into a free person.  Workers can only be free when they have overthrown capitalism and established socialism.  Only a Revolution can make a slave into a free person. 


Revolution

Workers know that even to win small reforms (such as a small pay rise, health care, or education) they have to fight extremely hard and make great sacrifices.  Imagine how hard the workers would have to fight if they wanted to overthrow the capitalist system and run all the factories and lands themselves.  History shows that the ruling class would be ready to drown the workers in blood before handing over power.  It is inevitable that the capitalists will try to repress workers with threats, intimidation, and violence.  Aside from hiring thugs, crooks, and bullies the main method of repression of the capitalists class is through the state. 

The state is an organisation of armed men separated from production to defend the interests of a particular class.  Every state belongs to a particular class—a feudal state belongs to the feudal class, a capitalist state belongs to the capitalist class, a workers’ state belongs to the working class.  In sum, the state is an instrument of class rule.  The state includes the army, police, jails, courts, and bureaucracy. 

Army                   Jails           Courts           Bureaucracy

The capitalist system is protected by the capitalist state. Therefore, when the workers organise to overthrow the capitalist system, the capitalist state will inevitably try and crush the workers movement.  Initially workers may be scared and intimidated by these repressive tactics.  However, as the political power of the working class grows the fear of repression recedes and workers learn the art of political organisation.  Workers learn that political organisation and mobilisation is the best defence against the onslaught of the state.  This struggle against capitalism politically educates the working class and the political, economic, administrative, culture institutions and organisations created in the process of the struggle against capitalism will be the basis of a new society of equality and democracy.  In other words, a new society can only be created in a determined struggle against capitalism.

Beware of Defeatism

Capitalist intellectuals argue that revolutions will not change anything.  After the revolution a new corrupt elite will rule over the people. These intellectuals have even rewritten the history of great revolutions to convince people that these movements were futile.

The fact of the matter is that every revolution has moved history forward and brought society closer to democracy and equality.  It is simply historically inaccurate to claim that revolutions have been in vain.  The few freedoms that workers have today are a result of the selfless sacrifices of revolutionaries.  Why did these revolutions not succeed in completely eliminating exploitation?  The reason is quite simple.  These revolutions were not workers’ revolutions.  These revolutions represented the interests of propertied classes.  After the revolution these propertied classes settled down to create a new society based on a new form of exploitation.

A workers’ revolution is different from all previous revolutions.  All previous revolutions were made in the interests of classes having some form of property.  A workers revolution is the first revolution made in the interests of those who have absolutely no property.  Therefore, a workers’ revolution will turn society upside down.  Those who have nothing will become rulers and those who are rulers will become ordinary people.  Such a workers’ revolution can only succeed by uniting all the workers of a society.  This level of unity can only be achieved on the basis of complete democracy which destroys all forms of privilege.  The destruction of privilege destroys the basis of corruption.  Therefore, a workers’ revolution cannot help but completely revolutionize society and destroy all forms of exploitation, privilege, and corruption.  In conclusion, a workers’ revolution is a new phenomenon in history and will open a new chapter in the history of humanity.

 

Capitalist intellectuals argue that people are selfish.  Therefore a socialist society cannot be set-up.  Human selfishness will destroy socialist society and capitalism will once again be dominant.

It is simply incorrect to claim that everyone is selfish.  If this were the case there would be no examples in history of people giving up their lives for various causes.  History provides millions of examples of people who gave up their lives for revolutionary movements.  Capitalist intellectuals claim that these people were also led by selfish motives such as fame.  But this is simply untrue.  Millions of them voluntarily gave up their lives in complete obscurity.  Therefore, it is simply incorrect to claim that everyone is selfish. 

A more accurate description would be to say that the ruling class is selfish. The workers, on the other hand, have a burning desire to be free.  This desire to be free forces workers to struggle against capitalism. The struggle teaches workers that if they continue to act in a selfish manner they will remain slaves. Therefore, the struggle against capitalism teaches workers new values based on unity and selflessness.  In conclusion, the struggle purifies the working class.

Last but not least, the workers’ revolution will set up a society based on the equality of opportunity.  In such a society individuals will earn in accordance with their work.  Equality of opportunity will gradually eliminate all forms of selfishness.

 

The capitalist intellectuals argue that revolutions involve needless bloodshed. They argue that change should be purely peaceful. They conclude that revolutions are unnecessary.

Naturally, no good person wants violence.  That is why workers hope that capitalism can be overthrown peacefully.  Revolutionary workers always take the most care to not provoke or be provoked into a violent confrontation.  The capitalists, on the other hand, always attempt to provoke violence in order to crush the workers movement and save their system.  History shows that the capitalists have been prepared to drown the workers in blood to save their system.  Revolutionaries only ask that workers be mentally and organisationally prepared to sacrifice in order to overthrow the capitalist system.

Throughout history revolutionaries have never looked forward to or desired violence.  It is the ruling class that provokes violence.  Therefore, the responsibility for violence, if there is any, rests not with the workers but with the capitalist class.  Workers fight for their freedom. Truth and justice are on the side of the workers.  The slave-like conditions have made workers hard as nails.  Workers are not scared by intimidation and threats of violence.  In simple words, revolutionary workers hope for the best, but prepare for the worst. 

Those intellectuals who argue that workers should not struggle for freedom because this leads to violence are trying to scare people from the idea of revolution and are objectively supporting slavery.

 

Capitalist intellectuals argue that they don’t believe in revolution but in evolution.  They argue that revolution is a rapid change and therefore very transient and temporary.  On the other hand, evolution is a slow change and more permanent.

The fact of the matter is that evolution and revolution are both processes of history.  Only after several years of evolution does society come to a stage where revolution becomes necessary and inevitable.  In a word, evolution lays the foundation for revolution.  Similarly, revolution lays the foundation for future evolution. 

---Evolution----------Revolution--------------Evolution-----------Revolution---

The real question is, “What stage of history is humanity standing at today?  Are we standing at a revolutionary stage or an evolutionary stage?”  The growing inequality between rich and poor, rapid mehangai, unending unemployment, ecological crisis, economic collapse, war and genocide, famine and starvation, corruption and illiteracy, apathy and confusion, and so on, all point to the fact that the capitalist system is no longer capable of developing human society any further.  Therefore, a workers’ revolution is the need of the day.  A workers’ revolution will release humanity from the burden of capitalism and create the conditions for future social evolution towards a higher stage of development.  Therefore, a revolutionary change far from being transient will lay the permanent foundation for human development and social evolution.

 

Capitalist intellectuals in Pakistan argue that “all systems are equally good, what matters is the people who are running it.”

Unfortunately, this unique argument finds much currency in Pakistan.  One would have to look very hard to find an argument that could compare in stupidity to this one.  These intellectuals can detect no difference between a capitalist system based on the exploitation of the working class, and a socialist system based on equality and democracy.  It follows from their logic that if “good people” are exploiting workers, this is the same as people struggling for equality and democracy.  These intellectuals need to understand that capitalism is based on exploitation, and therefore, individuals who support exploitation cannot be considered “good people”.  In conclusion, this argument has not understood the basis of capitalism and is totally incorrect.

 

Finally when capitalist intellectuals have no arguments left they argue that all these ideas are great but they can never be implemented especially not in Pakistan where people have a slave mentality.

This is simply a slander against people.  Every worker wants to change their lives and eliminate poverty, exploitation, and oppression.  The fact is oppression creates resistance.  There is a burning desire in the oppressed sections of society to change the world. 

This desire to change the world is daily creating a political leadership capable of educating, mobilizing, and organising workers to achieve this end.  With the establishment of such a political leadership all the workers of Pakistan will be ready to struggle and sacrifice to change the system. Then no force on earth will be able to stop the development of this movement towards emancipation, liberation, and revolution.

 

Conclusion

In conclusion, as long as capitalism exists workers will remain slaves.  Whereas reforms improve the conditions of slavery, revolution overthrows the system of capitalist slavery itself.  Therefore, there is only one path to freedom—the path of revolution.

 

·         Reforms improve the conditions of capitalist slavery

·         Revolution destroys capitalist slavery once and for all

 

The question is, “What classes are revolutionary?”


III.

Workers are the most

Revolutionary Class in Society

The first section showed how capitalism is based on the exploitation of the workers and leads to poverty, mehangai, and unemployment.  The second section showed that reforms merely improve the conditions of slavery while a revolution eliminates slavery itself.  This section will look at all the different classes of society and show that the workers are the most revolutionary class in society.

What is Class?

We know that in order to produce the necessities of life, humans work together.  The act of working together gives rise to a system of work relations.  This system of work relations is called the economic system.  These work relations (economic system) give rise to classes in society.  For example, in slave society work relations are structured in such a way that the slave owner purchases the life of the slave.  Similarly, in feudal society work relations are structured in such a way that the feudal lord extracts rent and taxes from the peasants.  Likewise, in capitalist society work relations are structured in such a way the capitalist buys the labour-power of the worker.  Therefore, work relations and the economic system are really one system of class rule and work relations give rise to classes..

Class is the historically evolved relationship of a stratum of society to the means of production. Society is divided into different classes and every class defends its interests.  In order to defend its interest, every class creates a set of ideas called ideology.  The struggle between different ideologies is really the expression of the struggle between different classes in society. In conclusion, history is really the history of class struggle. Our society is also split between the ruling class and the people.

The Ruling-Class

Civil Military Bureaucracy – The civil military bureaucracy was created by British colonialism and is the most powerful institution in Pakistan.  It runs the entire country and has the power to change governments at will.  In all of Pakistan’s 55 years of history, it has ruled the country directly for 39 years. In the remaining 15 years of so-called democratic rule it has ruled the country from behind the scenes. These civil military bureaucrats have amassed a huge fortune for themselves but people are too scared to say anything against them.

 

Big capitalists – The big capitalists were created by the civil military bureaucracy.  Together they control 70 to 80 percent of all industrial resources in the country.  They are the biggest loan defaulters and owe Pakistani banks billions of rupees.  They have stored most of their wealth in foreign banks.  They are strong supporters of the policies of the USA.

 

Feudal Lords – Feudal lords are closely tied to the civil military bureaucrats and the big capitalists.  Feudal lords live by exploiting peasants. They display extreme brutality towards rebellious peasants. Their ideas are very backward and they are opposed to progressive changes in the country. Owing to their control of vast areas of land they are able to dominate elections.  They are also strong supporters of the policies of the USA.

These three groups make up the ruling-class of Pakistan. They oppress and exploit all the people of Pakistan and are responsible for the condition of our people.  They are all supported by the USA.

 

The People

Mazdoor – Mazdoors make their living by selling their mehnat. In Pakistan industrial workers are employed in railway, mining, transport, shipping, textiles, construction. A great number are also enslaved in foreign owned Multinational Companies (MNC). They are mercilessly exploited by the capitalists and suffer terrible hardship. The spread of capitalism increases their numbers and concentration in industrial areas. This class is filled with the desire to break the chains of capitalism. Workers are the leading force of the revolution.

 

Middle Class – The middle class is composed of small shopkeepers, clerks, office employees and so on. Many among them aspire to be rich and they look for ways within the system to rise to the level of the rich. But they are also exploited by the capitalists and are constantly plunged back into poverty. They become revolutionary when they are poor and become counter-revolutionary as they become better off. Thus, they do not fight with the same resolve as workers. Nonetheless, they are extremely important allies of the workers.

National Capitalists – National capitalists are small and middle scale capitalists. National capitalists are opposed to the policies of the USA including the IMF, World Bank, and WTO. This class has become rich and long given up revolutionary ideas. Nonetheless, they are important allies of the workers against the ruling class that is backed by the USA.

 

Poor Peasants – Poor peasants own little land or no land and are brutally exploited by rich peasants and feudal lords.  Their conditions are even worse than industrial workers and their lives are at the mercy of the rural rich. Poor peasants lead a life of feudal slavery and often migrate to the cities to become factory workers. Poor peasants are the largest and poorest class in Pakistan and are desperate for a revolution. Therefore, workers and poor peasants make up a formidable revolutionary army.

 

Middle Peasants – Middle peasants own barely enough land to feed themselves and their family. They derive their income mainly from their own labour. They do not exploit others but are frequently exploited by the feudal lord and rich peasants.  Therefore, they are extremely important allies of the poor peasants.

 

Rich Peasants – Rich peasants own large quantities of land and derive their income from exploiting peasants. They often utilise modern technology and machines for farming (tractors, tube-wells, fertilizers, threshing machines etc). Therefore, rich peasants are small level agricultural capitalists but they also personally engage in labour. They are reasonably rich and have given up the idea of revolution.  Nonetheless, they are important allies of the poor peasants against the feudal lords who are backed by the USA.

 

Workers are the most Revolutionary Class in Society

The attitude of classes to revolution depends on the extent to which they are benefiting from the capitalist system.  Civil-military bureaucrats, Capitalists feudal lords benefit the most, therefore, they are the least likely to be interested in making a revolution. 

Workers occupy the lowest position in society and their daily conditions of life compel them to fight against the capitalists in order to better their conditions of life.  This struggle against the capitalists makes the working-class most receptive towards revolutionary ideas and revolutionary movements.  Furthermore, the working-class is in contact with the modern industry and with the development of capitalism becomes ever more concentrated and organised.  This means that the working-class is relatively easy to organise on a modern scientific footing. The middle class can acquire a better position within the capitalist system but the mass of the workers can only acquire a better position by overthrowing the capitalist system. Therefore, other classes in society fight to get a better position within the capitalist system.  The workers are directly interested in the complete overthrow of the capitalist system. 

Workers do not have enough time to think?

Capitalist intellectuals often argue that workers are so poor, illiterate, and ignorant that they are simply unable to think about politics, economics, culture or other important matters.

While it is true that capitalists attempt to keep the mass of the working people in ignorance and backwardness; nonetheless, the process of capitalism itself forces workers to escape their backwardness and learn about the world.  The capitalists are forced to educate workers to make them capable of running modern machines.  The capitalists are forced to teach workers modern methods of organisation and discipline to make them capable of increasing economic efficiency in the factory.  The capitalists are forced to teach workers basic methods of medicine and health care in order to prevent abstentions and ensure the smooth running of factory.  The capitalists are even forced to teach the workers the skills of political mobilisation in order to fight the opponents of the capitalist class (for example, the struggle against colonialism and against feudal remnants).  All this means that capitalism is an enormous school that steels the workers and gives them all the tools they require to struggle against capitalism.  The process of capitalism forces workers to climb out of their ignorance and become more and more politically conscious.

 

Conclusion

·         The capitalists cannot eliminate poverty, inflation, & unemployment. They are only concerned with their profit from trade & industry.

·         The feudal-lords cannot eliminate poverty, inflation, & unemployment. They are only concerned with their profit from agriculture.

·         The civil-military bureaucracy cannot eliminate poverty, inflation, & unemployment. They are only concerned with increasing their share of the government budget.

·         The middle classes cannot eliminate poverty, inflation, & unemployment. They are only concerned with preventing themselves from becoming workers.

 

·         Only the Mazdoor and Poor Kissans can eliminate poverty, inflation, & unemployment. They are compelled by their daily conditions of existence to fight and overthrow the capitalist system.

 

 

In conclusion,

 

Workers are the most Revolutionary Class in Society


IV.

Victory is Inevitable

The first section showed how capitalism is based on the exploitation of the workers and leads to poverty, mehangai, and unemployment.  The second section showed that reforms merely improve the conditions of slavery while a revolution eliminates slavery itself.  The third section analysed all the different classes in society and showed that workers are the most revolutionary class in society.  This section will show how the process of capitalism inevitably leads to the victory of the working class.

The Capitalist Class

Capitalist intellectuals distort history to create the impression that capitalism and capitalists have always been a part of humanity.  In fact, this is not true. 

The capitalist class sprang from the merchants of the earliest towns of Europe around the 16th century.  The gradual expansion of trade through the discovery of the American continent and navigation around Africa opened new ground for the developing capitalist class.  Through trade the capitalist class colonised the entire world including America, India, Asia, and Africa.  When the British capitalists colonised the sub-continent they created a local capitalist class.  The local capitalist class was ideologically, politically, economically and culturally subservient to the British colonialists.  After the departure of the British, the local capitalist class continued the same economic and political system of the British colonialists. 

On the one hand, this colonisation led to the rapid growth of commodity production, exchange, commerce, railways, machinery, navigation, urbanization, literature, and modern large-scale industry. This was called the “industrial revolution”.  The process of capitalist competition for new markets forced individual capitalists to explore every corner of the world. In this way, the capitalist system replaced the feudal system and established a world economy.

On the other hand, the capitalist class reduced all human relations to naked self-interest and drowned every noble emotion in the heartless icy water of “cash payment”. The capitalist class has converted the physician, the lawyer, the priest, the poet, & the scientist into his paid wageworker. The capitalist class has even reduced the family to a mere money relation. The spread of capitalism resulted in a new enslavement of the vast majority of the world’s people by a handful of capitalists.  The rich get richer while the poor get poorer.  It made the countryside dependent on the cities and the East dependent on the West.  In conclusion, the capitalist class created naked, shameless, direct, brutal exploitation and a society based on greed and selfishness. The spread of capitalism resulted in the destruction of ancient civilisations, peoples, cultures, creating enormous disparity between the rich and the poor.  In a word, capitalism came into this world dripping from every poor with the blood of millions of enslaved people.

In conclusion, the modern capitalist class emerged after a long process of development. The capitalist class overthrew European feudal society and went on to colonise the world.  In the colonial world it created a subservient local capitalist class. This subservient local capitalist class continues to rule Pakistan.

The Working-Class

The development of capitalism continuously creates the modern industrial working-class. The industrial working-class has no capital and lives by selling their labour-power (mazdoori).

The development of capitalism inevitably leads to the development of the industrial working-class.  The small capital of the middle-class cannot compete with big capital. That is why the middle-class including small traders, shopkeepers, and handicraftsmen gradually becomes part of the industrial working-class. As a result the working-class grows larger and larger.

The development of capitalism concentrates masses of workers into giant factories.  In these giant factories workers are placed under a chain of command and organised like soldiers. In the factory the workers are slaves of the machine, the foreman, and above all, the capitalist himself.

With the development of industry the struggle between the worker class and the capitalist class also develops. At first the individual workers contest with capitalists. In this early stage workers sometimes even attack machines. They destroy imported raw materials, smash machines, set factories ablaze in the hope that they can be freed from capitalism. At this stage, workers are not united, they are scattered over the whole country and disunited by mutual competition. The capitalist class is able to use these workers for their own political ends. Therefore, at this stage the capitalist class is more politically mature and is able to use the working-class for its own purposes.

Gradually, the working-class not only increases in number and concentration, it becomes politically mature. Its strength grows, and it feels that strength more.  The slave-like conditions of life of the workers compel workers to struggle against the capitalist. At first workers of a particular factory unite to keep wages high. Slowly the struggle spreads from one factory to a branch of industry or an entire locality. The workers begin to form Trade Unions and strike committees against the capitalists.  Thus, gradually the collision between individual workers and individual capitalists becomes a collision between two classes.

Now and then the workers are victorious, but only for a time. Their real victory lies, not in the immediate result, but in the ever-expanding union of workers. This union is helped by the improved means of communication created by modern industry. Workers of different localities and countries can contact one another. This contact helps to centralise local struggles into one national and slowly international struggle between classes. This organisation of workers into a class, and consequently into a political party, is continually upset by the competition between the workers themselves. But it rises up again, stronger, firmer, and mightier.

The struggle between different sections of the ruling class also helps to politically educate the working-class. In these struggles the ruling-class is compelled to appeal to the workers for mass support. Thus, the ruling-class drags workers into politics. This exposure to politics educates workers. At the same time, large sections of the middle-class continuously sink into the workers and supply the workers with fresh elements of enlightenment and progress.

Finally, when the class struggle nears the decisive hour, the process of degeneration going on within the ruling class and the entire society becomes so glaring that a section of the ruling class joins the revolutionary workers. Therefore, just as at an earlier period, a section of the feudals went over to the capitalist class, now a portion of the capitalist class goes over to the workers. Especially a part of the intellectuals who have understood the laws of history and can see that the working class holds the future in its hands.

 

In conclusion, the lower middle class, the small producer, and the shopkeeper, all fight against the capitalist class but only to save existence as a middle class. They are therefore not revolutionary, but conservative. They try to roll back the wheel of history. They may occasionally become revolutionary in fear of becoming a worker.

The worker is without property. His relation to his wife and children no longer has anything in common with the capitalist family. Industrialisation has stripped him of every trace of national character. He recognises that capitalist interests are hidden underneath law, morality, and religion. The conditions of life within the ranks of the working-class are more and more equalised. Machinery destroys obliterates all distinctions between workers and reduces wages to the same low level. Machinery also changes the nature of work.  Machinery replaces skilled labourers by unskilled workers, male workers by female workers, adult workers by child labour, and throws the rest on the streets.  Specialised skills become worthless. Work is transformed into a simple monotonous function, with neither physical nor mental elasticity.Commercial crises result in ever more fluctuating wages. The unceasing improvement of machinery makes the workers' livelihood more and more precarious.

That is why workers can only become masters of society by abolishing all systems of exploitation. They have nothing of their own to protect or secure. Their mission is to destroy private property. Thus, of all the classes confronting the capitalist class, the working class has absolutely no stake in the system and is therefore the most revolutionary class in society. All other movements uphold the interests of small minorities. The working class movement is the self-conscious, independent movement of the immense majority, in the interest of the immense majority. The working-class, the lowest class of our present society, cannot stir, cannot rise up, without revolutionising the entire society. Therefore, out of all the classes that stand face to face with the capitalist class today, the working-class alone is a really revolutionary class. The other classes decay and finally disappear in the face of modern industry. The working class is the product of modern industry.

Even a slave is assured a livelihood. The serf can always rely on the land for livelihood. The modern working-class instead of rising with the progress of industry, sinks deeper and deeper into poverty. The worker becomes a pauper. This compels society to admit that the capitalist class is unfit to rule because it cannot even assure the existence of its own slave. Sooner or later this veiled civil war breaks out into open revolution. Only the violent overthrow of the capitalist-class lays the foundation for the rule of the working-class.

In conclusion, the process of development of capitalism results in the growth and development of the industrial working-class in ever greater numbers. The capitalist class produces its own grave-diggers. Its fall and the victory of the working-class is inevitable.

·      The victory of the working class is inevitable.


Conclusion

We conclude four things from our analysis

1)       Capitalism creates poverty, mehangai, and unemployment

2)       Revolution not Reform

3)       Workers are Revolutionary

4)       Victory is Inevitable

For a Classless Society Based on Equality

Overthrow Feudalism, Capitalism, & Imperialism

 Workers of the World Unite
You Have Nothing to Lose But Your Chains

 

>>> Forward to Unity >>>

 

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Last modified: March 28, 2004
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