Chapter IV

THE ERRORS OF MARX, CONTINUED.
CAPITAL AS THE IMPLEMENT OF ABILITY

Two kinds of human effort being thus involved in modern
production, it is necessary for all purposes of intelligible
discussion to distinguish them by different names.

The word "labour" being appropriated by common custom to the
manual task-work of the majority, some other technical word must
be found to designate the directive faculties as applied to
productive industry. The word here chosen, in default of a
better, is "ability."

Ability, then, being the faculty which directs labour, by what
means does it give effect to its directions?

It gives effect to its directions by means of its control of
capital, in the form of wage-capital.

Ability, using wage-capital as its implement of direction, gives
rise to fixed capital, in the form of the elaborate implements
of modern production, which are the material embodiments of the
knowledge, ingenuity, and energy of the highest minds.

CHAPTER V

REPUDIATION OF MARX BY MODERN SOCIALISTS.
THEIR RECOGNITION OF DIRECTIVE ABILITY

The more educated socialists of to-day, when the matter is put
plainly before them, admit that the argument of the preceding
chapters is correct, and repudiate the doctrine of Marx that
"labour" is the sole producer.

Examples of this admission on the part of American socialists.

The socialism of Marx, however, still remains the socialism of
the more ignorant classes, and also of the popular agitator.

It is, moreover, still used as an instrument of agitation by
many who personally repudiate it. The case of Mr. Hillquit.

The doctrine of Marx, therefore, still requires exposure.

Further, it is necessary to understand this earlier form of
socialistic theory in order to understand the later.