The Compulsion for Revolution

Even before the war, the capitalist economy was temporarily plunged into disorder. The so-called economic crises, caused by overproduction, were their calling; too much had been produced. One might assume that this would have led to an abundance among the population. However, the opposite was true; hardship and deprivation were the effects felt among the producers [Erzeuger -K.V.]. The capitalist economy sought a way out of this crisis by attempting to conquer foreign markets. Consequently, the interests of different capitalist countries clashed. Arms were prepared to secure the largest possible market through sheer military power. The World War was the continuation and consequence of these policies. But the war was also profitable for the capitalist economy, as one could simply profit from destruction. On the other side, the counterpart was misery and deprivation, sufferings imposed on the working population. After the war, a shortage of essential goods set in; thus, an expansion of industry to meet the needs of the domestic market could have been anticipated. The opposite was what followed. No work was being done, and nothing was being produced. Why not? The capitalist economy could not survive under such conditions, as they yielded no profit. The capitalist could not pay his bills. The market, desperately needed by the capitalist economy to function and continue existing, would absorb and soak up everything instantly if it depended solely on the will of this market. However, the market does not possess the means to acquire commodities. These means — liquid cash — are in the hands of the big capitalists. Furthermore, capital demands significant tributes in the form of high prices. The producers, that is, the manual and intellectual workers, receive at most a quarter of the actual value for the work performed. The remaining three-quarters amount to state burdens, which primarily arise from the claims of the capitalists on the state, such as war bonds, national debt, reparations to the Entente, as well as economic rent, profit, or capital gains. We therefore see that the tribute claims of capital take away from the market — and thus from the producers — the means necessary to acquire the products produced by the industry. It follows from this that the industry has no sales [Absatz -K.V.]. Because of this, nothing is produced, and the factories stand still. Profit and tribute claims of capital obstruct reconstruction. This also explains the absurdity of the crises before the war. The tribute claims of capital hindered the supply of surplus commodities. One waited until the commodities priced too high — those commodities generating the most profit — were bought up. In the meantime, production was limited. Unemployment and misery were the consequences for the proletariat. Capital, in this way, risked less but sacrificed profit. The risk was therefore only felt on the side of the producers, the workers.

The cultural contradictions inherent in imperialism also find their explanation in the profit-driven economy. In their own country, there was little or insufficient profit to be gained from cultural and other necessary work. The domestic market was overloaded with tribute claims. Thus, the exploitation of foreign markets promised greater profits. Moreover, the production of arms and other war supplies yielded more profit, even if it meant the destruction of the greatest cultural values, which stood in stark contradiction to the interests of the working population. In this context, capital flourished remarkably. Everywhere one looks, the profit motive and the tribute claims of capital constitute the obstacles resisting the progression of development. However, it is a natural necessity that private capital must generate profit. Those who work without profit cannot compete and will be overshadowed by other capital. An unsatisfactory businessman who operates at a loss, or a poorly managed enterprise with a deficit, cannot survive.

The driving force of today’s economy is profit. Once the gain of profit has become impossible, the driving force disappears. From all this, it follows that when production for the market ceases to yield profits, the economy must automatically come to a standstill, regardless of the will of individuals. Every single employer suffers under the yoke of the capitalist mode of production. He must yield profits if he doesn’t want to be the cause of his own demise. With this, every capitalist, every private proprietor, becomes a representative of this system.

The conditions speak for themselves. Many factories are closed, and the most important work is neglected because it doesn’t yield any more profit. The majority of the population becomes devoid of purchasing power; therefore, there are no sales and no profit. Some parts of the industry indeed enjoyed an upswing, such as the furniture industry, which catered to foreign markets. It obtained incredible sales due to the cheap prices caused by differing exchange rates. The same is true for the luxury industry, which catered to the needs of the speculators and swindlers that had been fostered by war supplies. However, since the German exchange rate began rising, the furniture industry, for example, is now in disarray.

The control over the means of production, the commodities, and use-values lies with the private owners. The general bourgeois legal code, the state, courts, and prosecutors—all institutions of our bourgeois life — indeed, even the so-called public opinion, secure the private ownership of this right of disposition. The legal concept of private property is the foundation of our current economic life. Yet, it remains true that precisely in this right — wielded by the capitalists and their thirst for profit — lies the reason for the collapse of the economy. Two contradictions are made sharp and clear: private and collective interest. The collective interest demands the continuation of labor in spite of minimal profit. The state, the entire order, generally protects private interests against the interests of the producers, the majority of the population. If humanity doesn’t intend to perish, it must abolish this order and replace it with one that serves common interests over private interests. The abolition of private property and its conversion into collective ownership— this is what social revolution, council power, and the rule of the working class truly mean.