(Analyzes further the profit system, which strangles production, and makes true prosperity impossible.) We have seen that in an exploiting society there is a surplus which is taken by the exploiter; and that under the modern system this surplus must be sold at a profit before production can continue. The vital fact in such a society is that the worker has not the money to buy back all that he produces; therefore it is inevitable that a surplus product should accumulate. When this happens, production must be cut down, and during that period the worker is without a job, and without means of living. The fact that he needs the product does not help him; the point is that he has not the money to buy it. In such a society the productive machinery is never used to the full. The machinery is controlled by a profit-seeking interest, seeking an opportunity to make sales, and restricting production according to the prospect of sales. So the actual product bears no relationship to the possible product, and people who live in an exploiting society can form no conception of true prosperity.
For, you see, the market is limited by the competitive wage system. We have seen that in our own rich, prosperous country only one family out of six has more than $1,000 a year income; only one family out of twelve has $2,000 a year. It does not make any difference that the warehouses are bursting with goods; a family constitutes a market of so many dollars a year, and then, so far as the profit system is concerned, that family is non-existent; that family stops consuming, and the productive machinery is halted to that extent.
I have been accustomed to portray the profit system under the simile of an iron ring riveted about the body of a baby. That ring would cause the baby some discomfort at the beginning, but it would not be serious, and the baby would get used to it. But as the baby grew the trouble caused by the ring would increase, and finally there would come a time when the baby would be suffering from a whole complication of troubles, and for each of these troubles there would be but one remedy—break the ring. Does the baby cry all the time? Break the ring! Is its digestion defective? Break the ring! Is it threatened with convulsions or with blood poisoning? Break the ring!
Here is our industrial society, growing at a rate never equalled by any human baby; and here is this iron ring riveted about its middle. Here is poverty, here is unemployment, here is graft, here is crime, here is war and plague and famine; and for all these evils there is but one cause, and but one remedy. Break the ring! Set production free from the strangulation of the profit system.
I will admit that there may have been a time in the history of the social infant when this ring was necessary. I admit that if the great industrial machine was to be constructed, it was necessary that the mass of the people should consume only part of what they produced, and should allow the balance to be reinvested as capital. But now it has been done, a............