A CRITICISM OF CAPITALISM

Evening Star, Issue 22461, 5 October 1936, Page 10

A CRITICISM OF CAPITALISM

RAILWAY W.E.A. CLASS The Railway W.E.A. class held its final meeting for the 193(3 season on Sunday afternoon, when the address was given by a speaker from the economics division of the University. In prefacing his address the speaker outlined the relationship between the science of economics and the science of ethics. Economics had been defined as the science dealing with the study of mankind in the ordinary business of life —i.e., his relationship with wealth and the means of attaining it—but the production of wealth was only one factor of economics, and was subjunctive to other factors. A thorough knowledge of economics should be the basis of politics and statesmanship. In other words, economics was a positive science in so far as it merely observed certain phenomena and drew “ laws ” from what it saw; but it was also a normative science, watching tendencies, establishing laws, and introducing the science of ethics to show whether the existent standard of economics was right or wrong. The special knowledge of economists should enable them to set up a standard of right conduct in society. Capitalism and the conditions which were part and parcel of this system were incompatible with Christian doctrine and ethical principles. The drive of the competitive system, the motives underlying the desire for acquisition and direct competition were in open conflict with Christian doctrine. It was inevitable under such a system that employers should sacrifice the interests of their employees in order to maintain a high peak of production. The speaker went on to define what was meant by competition (the act of striving for identical objects which cannot be obtained or enjoyed in common), and showed how, under certain conditions, competition was not necessarily detrimental to the common welfare; but at the same time he criticised the statements of many who supported competition as being something necessary and desirable in business. That competition was a stimulant, he agreed. It also enabled people to purchase more flexibly what they wanted, by increasing the range. The advantages obtained by competition were real, but were easily discounted, and markets became glutted by this same play of competitive forces. The evils of competition arose from a lack of co-operation arising in turn from the isolation of human considerations and welfare from the task of producing wealth. What was wanted was an increase in the socalled “ altruistic ” motive rather than *' business is business ” idea, ivhicli was intolerable. Until some organised form of co-operation superseded Capitalism the struggle between classes, wars and crises were inevitable. There was inherent in Capitalism something which precipitated crises. Several suggested proposals for adjusting the present system were outlined and enlarged upon. State limitation of capitalism was in itself insufficient, as it failed to strike at the roots of the problem, although admittedly it would ease the strain of industrial competition and do away with some of the worst evils of the system. It seemed that the only means of the essential cleavage of interest and exploitation under our present system was by taking over the means of production, distribution, and exchange—in other words, State Socialism, In conclusion the speaker outlined the principles of guild Socialism (the policy of writers such as G. D. H. Cole). A Government acting upon these principles would supply what we lacked at present—a central organisation for the control of economic activity. Under such a system of guild Socialism the economic drive would not come from the motives of self-interest, but would appeal to the motives of altruism and co-operation. The address, of a controversial nature that encouraged discussion, was received with interest by members of the class, and_ during the remaining hour was criticised and discussed and endorsed by various members. At the conclusion of the discussion a hearty vote of thanks was accorded the speaker for his stimulating address.