CHAPTER LVI THE CAPITALIST PROCESS

 (How profits are made under the present industrial system and what becomes of them.)

We have next to examine the structure of the capitalist order, basing our argument on facts which are admitted by everyone, including the most ardent¹ defenders² of the present system.

All men have to have certain material things which we describe as goods. As these goods do not produce themselves, it is necessary that some should work. The workers must have tools; also they must have access to the land and the sources of raw materials. These means of production are owned by some individuals in the community, and this ownership gives them power to direct the work of the rest. Those who own the land and the natural sources of wealth we call capitalists, or business men, and those who do not own these things, or whose share in them is insignificant³, are the proletariat, or working class.

If you state to the average American that there is a capitalist class and a proletariat in this country, he will point out that many who are now members of the capitalist class were originally members of the proletariat; they have worked hard and saved, and accumulated property. But this is merely confusing the issue. The fact that some proletarians turn into capitalists and some capitalists into proletarians is important to the individuals concerned, but it does not alter the fact that there are two classes, capitalist and proletarian. Consider, by way of illustrating⁴, a field with trees growing on it; we have earth, and we have trees, and the distinction between them is unmistakable. The roots of the trees go down into the earth, and take up portions of the earth and turn it into tree. The leaves and the dead branches fall, and in the course of time are turned once more to earth. There are all sorts of stages between earth and tree, and between tree and earth; but you would not therefore say that the word "earth" and the word "tree" are misnomers⁵.

The working men go to the business man and apply for work. The business man gives them work, and takes their product, and offers it in the market at a price which allows him a profit above cost. If he can sell at a profit, he repeats the process, and the worker has a job. If he cannot sell at a profit, the worker is out of a job. Here and there may be a benevolent⁶ business man who, rather than turn his workers out of a job, will sell his goods at cost, or even for a short time at a loss; but if he keeps the factory going simply for the benefit of his workers, and with no expectation of ever making a profit, that is a form of charity, and not the common system under which our business is now carried on.

So it appears that the worker is dependent for his wages upon the ability of the business man to make a profit. The worker's life is inextricably bound up with the profit of the capitalist—no profit for the capitalist, no life for the worker. The capitalist, going out to look for markets for his goods, is seeking, not merely profit for himself, but life for his workers.

Now, the business man pays a certain percentage of his total receipts for labor⁷, another percentage for raw materials, another percentage for his overhead charges, and the rest is profit in various forms, rent to the landlord, interest to the bondholder, dividends⁸ to the stockholder. All this total sum goes to human individuals, and each has thus a certain amount of money to spend. They pay it over to other individuals for goods or services, and so the money keeps circulating, and business keeps going. That is as deep as the average mind probes into the process.

But let us probe a little deeper. It is evident that, in the course of all this exchanging of goods, some individuals get a larger share than other individuals. Our government collects an income tax, and thus we have statistics representing what people are willing to admit about the share they get. In 1917 it appeared that, speaking roughly, one family out of six had an income of over $1,000 a year, and one family out of twelve had an income of over $2,000. But there were 19,000 families which admitted incomes of over $50,000 a year, and 300 with over $1,000,000 a year.

Now the families that get less than a thousand dollars a year obviously have to spend the greater part of their income upon their immediate⁹ living expenses. But the families that get $50,000 a year do not need to spend everything, and most of them take the greater part of their income and reinvest it—that is, they spend it upon the creating of new machinery¹⁰ of production, railroads, mills, factories, office buildings, the whole elaborate structure of capitalist industry.

Exactly what proportion of the total product of industry is thus taken and reinvested no one can say; but this we know, our cities are growing at an enormous rate, our manufacturing power is increasing by leaps and bounds, we are perfecting processes which enable one man to do the work of a hundred men, which increase the product of one man's labor a hundredfold. All this goes on blindly, automatically; a Niagara of goods of all sorts is poured out, and we call it "prosperity."

But then suddenly a strange and bewildering thing happens. All at once, and without warning, orders fall off, values begin to drop, business collapses¹¹, factories are shut down, and millions of men are thrown out of jobs. Merchants look at one another with blanched¹² faces; each one has been counting on paying his bills with the profits he was going to make, and now his profits are gone, and he can't pay. The newspapers and magazines keep insisting that it can't be true, that business is going to revive next week, that prosperity is just ahead. But the factories stay shut, and the millions of men stay idle.

This is the condition in which we find ourselves as I write this book. It has been happening regularly in our history every ten years or so, ever since America started; we have had a hundred years to reflect upon it and to probe into the causes of it, and such is business intelligence in the most enlightened country in the world, you may search the pages of our newspapers from the first column of millionaire divorce suits to the last column of "situations wanted," and nowhere can you find one word to explain this mysterious calamity¹³ of "hard times"—how it comes to happen to our social system, or what could be done to prevent it! To supply this deficiency in present day thinking is our next task.

1 ardent   

adj.热情的，热烈的，强烈的，烈性的

参考例句：

• He's an ardent supporter of the local football team.他是本地足球队的热情支持者。
• Ardent expectations were held by his parents for his college career.他父母对他的大学学习抱着殷切的期望。

2 defenders   

n.防御者( defender的名词复数 )；守卫者；保护者；辩护者

参考例句：

• The defenders were outnumbered and had to give in. 抵抗者寡不敌众，只能投降。 来自《简明英汉词典》
• After hard fighting,the defenders were still masters of the city. 守军经过奋战仍然控制着城市。 来自《简明英汉词典》

3 insignificant   

adj.无关紧要的，可忽略的，无意义的

参考例句：

• In winter the effect was found to be insignificant.在冬季，这种作用是不明显的。
• This problem was insignificant compared to others she faced.这一问题与她面临的其他问题比较起来算不得什么。

4 illustrating   

给…加插图( illustrate的现在分词 )； 说明； 表明； （用示例、图画等）说明

参考例句：

• He upstaged the other speakers by illustrating his talk with slides. 他演讲中配上幻灯片，比其他演讲人更吸引听众。
• Material illustrating detailed structure of graptolites has been etched from limestone by means of hydrofluoric acid. 表明笔石详细构造的物质是利用氢氟酸从石灰岩中侵蚀出来。

5 misnomers   

n.使用不当的名字或名称( misnomer的名词复数 )

参考例句：

6 benevolent   

adj.仁慈的，乐善好施的

参考例句：

• His benevolent nature prevented him from refusing any beggar who accosted him.他乐善好施的本性使他不会拒绝走上前向他行乞的任何一个乞丐。
• He was a benevolent old man and he wouldn't hurt a fly.他是一个仁慈的老人，连只苍蝇都不愿伤害。

7 labor   

n.劳动，努力，工作，劳工；分娩；vi.劳动，努力，苦干；vt.详细分析；麻烦

参考例句：

• We are never late in satisfying him for his labor.我们从不延误付给他劳动报酬。
• He was completely spent after two weeks of hard labor.艰苦劳动两周后，他已经疲惫不堪了。

8 dividends   

红利( dividend的名词复数 )； 股息； 被除数； （足球彩票的）彩金

参考例句：

• Nothing pays richer dividends than magnanimity. 没有什么比宽宏大量更能得到厚报。
• Their decision five years ago to computerise the company is now paying dividends. 五年前他们作出的使公司电脑化的决定现在正产生出效益。

9 immediate   

adj.立即的；直接的，最接近的；紧靠的

参考例句：

• His immediate neighbours felt it their duty to call.他的近邻认为他们有责任去拜访。
• We declared ourselves for the immediate convocation of the meeting.我们主张立即召开这个会议。

10 machinery   

n.(总称)机械，机器；机构

参考例句：

• Has the machinery been put up ready for the broadcast?广播器材安装完毕了吗？
• Machinery ought to be well maintained all the time.机器应该随时注意维护。

11 collapses   

折叠( collapse的第三人称单数 )； 倒塌； 崩溃； （尤指工作劳累后）坐下

参考例句：

• This bridge table collapses. 这张桥牌桌子能折叠。
• Once Russia collapses, the last chance to stop Hitler will be gone. 一旦俄国垮台，抑止希特勒的最后机会就没有了。

12 blanched   

v.使变白( blanch的过去式 )；使（植物）不见阳光而变白；酸洗（金属）使有光泽；用沸水烫（杏仁等）以便去皮

参考例句：

• The girl blanched with fear when she saw the bear coming. 那女孩见熊（向她）走来，吓得脸都白了。 来自《现代英汉综合大词典》
• Their faces blanched in terror. 他们的脸因恐惧而吓得发白。 来自《简明英汉词典》

13 calamity   

n.灾害，祸患，不幸事件

参考例句：

• Even a greater natural calamity cannot daunt us. 再大的自然灾害也压不垮我们。
• The attack on Pearl Harbor was a crushing calamity.偷袭珍珠港(对美军来说)是一场毁灭性的灾难。