(Examines the process of evolution in industry and the stage which it has so far reached.) And now let us consider the process of industrial evolution. We shall find it to be exactly the same thing, reproducing the changes in another field of activity. You may picture two gigantic waves sweeping over the ocean. In some places the waves are far apart, and in other places they are closer together; for a time they may mingle, and perhaps their bases always mingle. It would be easy for a critic to point out how political affairs play a leading part in industrial evolution, and vice versa; it would be easy to argue that property rules the political state, or again, that the main function of the political state is to protect property. As I have said, man has to fight his enemies, and he has to seek food, and often he has to do the two things at the same time; but nevertheless, broadly speaking, we observe two great waves, sweeping over human society, and most of the time these waves are clearly separated and easily distinguished.
Industry in a savage tribe is, like government, simple and uniform; all the members of the tribe get their living in the same way. One may be a little more expert as a fisherman, another as a gatherer of cocoanuts, but the fisherman gathers cocoanuts and the cocoanut-gatherer fishes. In the days of primitive communism there is little economic strife and little change; but as slavery comes in, and the private property system, there begins industrial war—the members of the tribe trade with one another, and argue over prices, and gradually some get the better of others, they accumulate slaves and goods, and later on they appropriate the land to their private use. Of course, the men who do this are often the rulers of the tribe, and so politics and industry are mixed; but even assuming that the state never interfered, assuming that the government allowed business affairs to work themselves out in their own way, the tendency of competition is always to end in monopoly. The big fish eat the little fish, the strong gain advantage over the weak, the rich grow richer, and the poor grow relatively poorer. As the amount of trading increases, and men specialize in the arts of bargaining, we see again and again how money concentrates in the hands of a few. It does this, even when the political state tries to prevent it; as, for example, when the princes and dukes of the Middle Ages would torture the Jewish money-lenders and take away their treasure, but the Jews never failed to grow rich again.
It is when political evolution has completed itself, and a republic has been set up, that a free field is given to economic forces to work themselves out to their logical end. We have seen this in the United States, where we all started pretty much on the same economic level, and where political tyranny has had little hold. Our civilization is a civilization of the trader—the business man, as we call him; and we see how big business absorbs little business, and grows constantly larger and more powerful. We are familiar with what we call "graft," the use by business men of the powers of government to get trade advantage for themselves, and we have a school of old-time thinkers, calling themselves "Jeffersonian Democrats," who insist that if only there had never been any government favors, economic equality and democracy would have endured forever in our country. But it is my opinion that government has done far more to prevent monopoly and special privilege in business than to favor it; and nevertheless, monopoly has grown.
In other words, the tendency toward concentration in business, the absorption of the small business by the big business, is an irresistible natural process, which neither can be nor should be hindered. The condition of competition, whether in politics or in industry, is never a permanent one, and can never be made permanent; it is a struggle which automatically brings itself to an end. Large-scale production and distribution is more economical than small-scale, and big business has irresistible advantages of credit and permanence over little business. As we shall presently show, the blind and indiscriminate production of goods under the competitive system leads to the glutting of markets and to industrial crises. At such times the weaker concerns are weeded out and the strong ones take their trade; and as a result, we have the modern great corporation, the most powerful machine of production yet devised by man, and which corresponds in every aspect to the monarchy in political society.
We are accustomed to speak of our "captains of industry," our "coal kings," and "beef barons" and "lords of steel," and we think we are using metaphors; but the universality of these metaphors points to a fundamental truth in them. As a matter of fact, our modern captain of industry fills in the economic world exactly the same functions as were filled in ancient days by the head of a feudal state. He has won his power in a similar struggle, and he holds it by similar methods. He rules over an organization of human beings, arranged, economically speaking, in grades and classes, with their authorities and privileges and duties precisely determined, as under the "ancient régime." And just as King Louis said, "I am the state," so Mr. Armour considers that he is Armour & Co., and Mr. Morgan considers that he is the house of Morgan, and that the business exists for him and is controlled by him under divine authority.
If I am correct in my analysis of the situation, this process of industrial evolution is destined to complete itself, as in the case of the political state. The subject populations of industry are becoming more and more discontented with their servitude, more and more resentful of that authority which compels them to labor while others reap the benefit. They are organizing themselves, and preparing for a social transformation which will parallel in every detail the revolution by which our ancestors overthrew the authority of King George III over the American colonies, and made inhabitants of those colonies no longer subjects of a king, but free and equal citizens of a republic. I expect to see a ............