The Poverty of Philosophy
Chapter Two: The Metaphysics of Political Economy
“Every upward movement in wages can have no other effect than a rise in the price of corn, wine, etc., that is, the effect of a dearth. For what are wages? They are the cost price of corn, etc.; they are the integrant price of everything. We may go even further: wages are the proportion of the elements composing wealth and consumed reproductively every day by the mass of the workers. Now, to double wages ... is to attribute to each one of the producers a greater share than his product, which is contradictory, and if the rise extends only to a small number of industries, it brings a general disturbance in exchange; in a word, a dearth....
“It is impossible, I declare, for strikes followed by an increase in wages not to culminate in a general rise in prices: this is as certain as that two and two make four.”
(Proudhon, Vol. I, pp. 110 and 111)
We deny all these assertions, except that two and two make four.
In the first place, there is no general rise in prices. If the price of everything doubles at the same time as wages, there is no change in price, the only change is in terms.
Then again, a general rise in wages can never produce a more or less general rise in the price of goods. Actually, if every industry employed the same number of workers in relation to fixed capital or to the instruments used, a general rise in wages would produce a general fall in profits and the current price of goods would undergo no alteration.
But as the relation of manual labour to fixed capital is not the same in different industries, all the industries which employ a relatively greater mass of capital and fewer workers, will be forced sooner or later to lower the price of their goods. In the opposite case, in which the price of their goods is not lowered, their profit will rise above the common rate of profits. Machines are not wage-earners. Therefore, the general rise in wages will affect less those industries, which, compared with the others, employ more machines than workers. But as competition always tends to level the rate of profits, those profits which rise above the average rate cannot but be transitory. Thus, apart from a few fluctuations, a general rise in wages will lead, not as M. Proudhon says, to a general increase in prices, but to a partial fall – that is a fall in the current price of the goods that are made chiefly with the help of machines.
The rise and fall of profits and wages expresses merely the proportion in which capitalists and workers share in the product of a day's work, without influencing in most instances the price of the product. But that “strikes followed by an increase in wages culminate in a general rise in prices, in a dearth even” – those are notions which can blossom only in the brain of a poet who has not been understood.
In England, strikes have regularly given rise to the invention and application of new machines. Machines were, it may be said, the weapon employed by the capitalist to quell the revolt of specialized labour. The self-acting mule, the greatest invention of modern industry, put out of action the spinners who were in revolt. If combinations and strikes had no other effect than that of making the efforts of mechanical genius react against them, they would still exercise an immense influence on the development of industry.
“I find,” continues M. Proudhon, “in an article published by M. Leon Faucher... September 1845, that for some time the British workers have got out the habit of combination, which is assuredly a progress for which one cannot but congratulate them: but this improvement in the morale of the workers comes chiefly from their economic education. ‘It is not on the manufacturers,’ cries a spinning-mill worker at a Bolton meeting, ‘that wages depend. In periods of depression the masters are, so to speak, merely the whip with which necessity arms itself, and whether they want to or not, they have to deal blows. The regulative principle is the relation of supply and demand; and the masters have not this power’ ....
“Well done!” cries M. Proudhon. “These are well-trained workers, model workers, etc., etc., etc. Such poverty did not exist in Britain; it will not cross the Channel.”
(Proudhon, Vol. I, pp. 261 and 262)
Of all the towns in England, Bolton is the one in which the radicalism is the most developed. The Bolton workers are known to be the most revolutionary of all. At the time of the great agitation in England for the abolition of the Corn Laws, the English manufacturers thought that they could cope with the landowners only by thrusting the workers to the fore. But as the interests of the workers were no less opposed to those of the manufacturers than the interests of the manufacturers were to those of the landowners, it was natural that the manufacturers should fare badly in the workers' meetings. What did the manufacturers do? To save appearances they organized meetings composed, to a large extent, of foremen, of the small number of workers who were devoted to them, and of the real friends of trade. When later on the genuine workers tried, as in Bolton and Manchester, to take part in these sham demonstrations, in order to protest against them, they were forbidden admittance on the ground that it was a ticket meeting – a meeting to which only persons with entrance cards were admitted. Yet the posters placarded on the walls had announced public meetings. Every time one of these meetings was held, the manufacturers' newspapers gave a pompous and detailed account of the speeches made. It goes without saying that it was the foremen who made these speeches. The London papers reproduced them word for word. M. Proudhon has the misfortune to take foremen for ordinary workers, and enjoins them not to cross the Channel.
If in 1844 and 1845 strikes drew less attention than before, it was because 1844 and 1845 were the first two years of prosperity that British industry had had since 1837. Nevertheless none of the trades unions had been dissolved.
Now let us listen to the foremen of Bolton. According to them manufacturers have no command over wages because they have no command over the price of products, and they have no command over the price of products because they have no command over the world market. For this reason, they wish it to be understood that combinations should not be formed to extort an increase in wages from the masters. M. Proudhon, on the contrary, forbids combinations for fear they should be followed by a rise in wages which would bring with it a general dearth. We have no need to say that on one point there is an entente cordiale between the foremen and M. Proudhon: that a rise in wages is equivalent to a rise in the price of products.
But is the fear of a dearth the true cause of M. Proudhon's rancour? No. Quite simple, he is annoyed with the Bolton foremen because they determine value by supply and demand and hardly take any account of constituted value, of value which has passed into the state of constitution, of the constitution of value, including permanent exchangeability and all the other proportionalities of relations and relations of proportionality, with Providence at their side.
“A workers' strike is illegal, and it is not only the Penal Code that says so, it is the economic system, the necessity of the established order....
“That each worker individually should dispose freely over his person and his hands, this can be tolerated, but that workers should undertake by combination to do violence to monopoly, is something society cannot permit.”
(Vol. I, pp. 334 and 335)
M. Proudhon wants to pass off an article of the Penal Code as a necessary and general result of bourgeois relations of production.
In England, combination is authorized by an Act of Parliament, and it is the economic system which has forced Parliament to grant this legal authorization. In 1825, when, under the Minister Huskisson, Parliament had to modify the law in order to bring it more and more into line with the conditions resulting from free competition, it had of necessity to abolish all laws forbidding combinations of workers. The more modern industry and competition develop, the more elements there are which call forth and strengthen combination, and as soon as combination becomes an economic fact, daily gaining in solidity, it is bound before long to become a legal fact.
Thus the article of the Penal Code proves at the most that modern industry and competition were not yet well developed under the Constituent Assembly and under the Empire. 
Economists and socialists [*1] are in agreement on one point: the condemnation of combination. Only they have different motives for their act of condemnation.
The economists say to workers:
Do not combine. By combination you hinder the regular progress of industry, you prevent manufacturers from carrying out their orders, you disturb trade and you precipitate the invasion of machines which, by rendering your labour in part useless, force you to accept a still lower wage. Besides, whatever you do, your wages will always be determined by the relation of hands demanded to hands supplied, and it is an effort as ridiculous as it is dangerous for you to revolt against the eternal laws of political economy.
The socialists say to the workers:
Do not combine, because what will you gain by it anyway? A rise in wages? The economists will prove to you quite clearly that the few ha'pence you may gain by it for a few moments if you succeed will be followed by a permanent fall. Skilled calculators will prove to you that it would take you years merely to recover, through the increase in your wages, the expenses incurred for the organization and upkeep of the combinations.
And we, as socialists, tell you that, apart from the money question, you will continue nonetheless to be workers, and the masters will still continue to be the masters, just as before. So no combination! No politics! For is not entering into combination engaging in politics?
The economists want the workers to remain in society as it is constituted and as it has been signed and sealed by them in their manuals.
The socialists want the workers to leave the old society alone, the better to be able to enter the new society which they have prepared for them with so much foresight.
In spite of both of them, in spite of manuals and utopias, combination has not yet ceased for an instant to go forward and grow with the development and growth of modern industry. It has now reached such a stage, that the degree to which combination has developed in any country clearly marks the rank it occupies in the hierarchy of the world market. England, whose industry has attained the highest degree of development, has the biggest and best organized combinations.
In England, they have not stopped at partial combinations which have no other objective than a passing strike, and which disappear with it. Permanent combinations have been formed, trades unions, which serve as ramparts for the workers in their struggles with the employers. And at the present time all these local trades unions find a rallying point in the National Association of United Trades, the central committee of which is in London, and which already numbers 80,000 members. The organization of these strikes, combinations, and trades unions went on simultaneously with the political struggles of the workers, who now constitute a large political party, under the name of Chartists.
The first attempt of workers to associate among themselves always takes place in the form of combinations.
Large-scale industry concentrates in one place a crowd of people unknown to one another. Competition divides their interests. But the maintenance of wages, this common interest which they have against their boss, unites them in a common thought of resistance – combination. Thus combination always has a double aim, that of stopping competition among the workers, so that they can carry on general competition with the capitalist. If the first aim of resistance was merely the maintenance of wages, combinations, at first isolated, constitute themselves into groups as the capitalists in their turn unite for the purpose of repression, and in the face of always united capital, the maintenance of the association becomes more necessary to them than that of wages. This is so true that English economists are amazed to see the workers sacrifice a good part of their wages in favor of associations, which, in the eyes of these economists, are established solely in favor of wages. In this struggle – a veritable civil war – all the elements necessary for a coming battle unite and develop. Once it has reached this point, association takes on a political character.
Economic conditions had first transformed the mass of the people of the country into workers. The combination of capital has created for this mass a common situation, common interests. This mass is thus already a class as against capital, but not yet for itself. In the struggle, of which we have noted only a few phases, this mass becomes united, and constitutes itself as a class for itself. The interests it defends become class interests. But the struggle of class against class is a political struggle.
In the bourgeoisie we have two phases to distinguish: that in which it constituted itself as a class under the regime of feudalism and absolute monarchy, and that in which, already constituted as a class, it overthrew feudalism and monarchy to make society into a bourgeois society. The first of these phases was the longer and necessitated the greater efforts. This too began by partial combinations against the feudal lords.
Much research has been carried out to trace the different historical phases that the bourgeoisie has passed through, from the commune up to its constitution as a class.
But when it is a question of making a precise study of strikes, combinations and other forms in which the proletarians carry out before our eyes their organization as a class, some are seized with real fear and others display a transcendental disdain.
An oppressed class is the vital condition for every society founded on the antagonism of classes. The emancipation of the oppressed class thus implies necessarily the creation of a new society. For the oppressed class to be able to emancipate itself, it is necessary that the productive powers already acquired and the existing social relations should no longer be capable of existing side by side. Of all the instruments of production, the greatest productive power is the revolutionary class itself. The organization of revolutionary elements as a class supposes the existence of all the productive forces which could be engendered in the bosom of the old society.
Does this mean that after the fall of the old society there will be a new class domination culminating in a new political power? No.
The condition for the emancipation of the working class is the abolition of every class, just as the condition for the liberation of the third estate, of the bourgeois order, was the abolition of all estates and all orders. [*2]
The working class, in the course of its development, will substitute for the old civil society an association which will exclude classes and their antagonism, and there will be no more political power properly so-called, since political power is precisely the official expression of antagonism in civil society.
Meanwhile the antagonism between the proletariat and the bourgeoisie is a struggle of class against class, a struggle which carried to its highest expression is a total revolution. Indeed, is it at all surprising that a society founded on the opposition of classes should culminate in brutal contradiction, the shock of body against body, as its final denouement?
Do not say that social movement excludes political movement. There is never a political movement which is not at the same time social.
It is only in an order of things in which there are no more classes and class antagonisms that social evolutions will cease to be political revolutions. Till then, on the eve of every general reshuffling of society, the last word of social science will always be:
“Le combat ou la mort; la lutte sanguinaire ou le neant. C’est ainsi que la quéstion est invinciblement posée.”
[From the novel Jean Siska by George Sand:
“Combat or Death: bloody struggle or extinction. It is thus that the question is inexorably put.”]
 The laws in operation at that time in France – the so-called Le Chapelier law adopted in 1791 during the revolution by the Constituent Assembly and the criminal code elaborated under the Napoleonic Empire – forbade the workers to form labour unions or to go on strike. The prohibition of trade unions was abolished in France in 1884.
[*1] That is, the Socialists of that time: the Fourierists in France, the Owenites in England. F.E. [– Engels note to the German edition, 1885]
[*2] Estates here in the historical sense of the estates of feudalism, estates with definite and limited privileges. The revolution of the bourgeoisie abolished the estates and their privileges. Bourgeois society knows only classes. It was, therefore, absolutely in contradiction with history to describe the proletariat as the “fourth estate.” [– Engels, 1885 German edition.]