Thursday, 18 September 2025

French Government Falls As Social-Democracy Falters Amid New Global Debt Crisis - Part 3 of 9


At his New Lanark Mills, Owen who was the precursor to the type of “functioning capitalists” described by Marx in Capital III, noted that, no matter how much he and other professional managers, benefited the workers by providing them with better wages and conditions, which, also, improved productivity and profits – and the New Lanark Mills did do all that to an unprecedented degree – the main beneficiaries remained the capitalists who took no part in production, but who simply loaned money to it.

“From 1800 to 1829, he directed the great cotton-mill at New Lanark, in Scotland, as managing partner, along the same lines, but with greater freedom of action and with a success that made him a European reputation. A population, originally consisting of the most diverse and, for the most part, very demoralised elements, a population that gradually grew to 2,500, he turned into a model colony, in which drunkenness, police, magistrates, lawsuits, poor laws, charity, were unknown. And all this simply by placing the people in conditions worthy of human beings, and especially by carefully bringing up the rising generation. He was the founder of infant schools, and introduced them first at New Lanark. At the age of two the children came to school, where they enjoyed themselves so much that they could scarcely be got home again. Whilst his competitors worked their people thirteen or fourteen hours a day, in New Lanark the working-day was only ten and a half hours. When a crisis in cotton stopped work for four months, his workers received their full wages all the time. And with all this the business more than doubled in value, and to the last yielded large profits to its proprietors.”


Owen noted,

“And yet the working part of this population of 2,500 persons was producing as much real wealth for society, as, less than half a century before, it would have required the working part of a population of 600,000 to create. I asked myself what became of the difference between the wealth consumed by 2,500 persons and that which would have been consumed by 600,000.”

The answer was that the huge difference had been syphoned off by the capitalists who no longer had any functional role in production, but who merely loaned money to those engaged in that production, i.e. the associated producers. Like the landlords before them, they now had no useful role to play, and yet, as ruling-class, via their control of the state, continued, and continue, to drain the vast majority of social production into their hands. Engels noted,

“The answer was clear. It had been used to pay the proprietors of the establishment 5 per cent on the capital they had laid out, in addition to over £300,000 (6,000,000 marks) clear profit. And that which held for New Lanark held to a still greater extent for all the factories in England.

“If this new wealth had not been created by machinery, the wars in opposition to Napoleon, and to support the aristocratic principles of society, could not have been maintained. And yet this new power was the creation of the working class.”

To them, therefore, the fruits of this new power belonged. The newly-created gigantic productive forces hitherto used only to enrich individuals and to enslave the masses, offered to Owen the foundations for a reconstruction of society; they were destined, as the common property of all, to be worked for the common good of all.

Owen’s communism was based upon this purely business foundation, the outcome, so to say, of commercial calculation. Throughout, it maintained this practical character.”

(ibid)


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