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Is Socialism More Ethical Than Capitalism?


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By Rev. A. Powell Davies D.D.
October 16, 1949


For almost half a century now, if not for longer, the economic and social system known as capitalism has had what psychologists call an insecurity feeling. Even when it has been most aggressive, it has had to contend with an inner uncertainty, a persistent self-doubt of its own virtue, its own morality, its own integrity. When under attack, instead of defending itself on moral grounds it has chosen to emphasize its practical success. Under what other system, capitalists have asked, could such spectacular material progress have been made? Look, they have said, at the miracles of mass production! See how the multitude has benefited from the profit-making system! But what they have not said is that capitalism is a good system ethically, or that its moral standards are high ones.
 
Instead, they have spoken of the selfishness of human nature, which cannot get along without material incentives. Who will take risks, they asked, or exert themselves in business enterprises unless there is something in it for themselves? Socialism may be all very well from an idealist's standpoint, but we are not living in an idealist's world. In the world in which we actually are living, only capitalism can supply incentives for material prosperity.
 
And thus, in the ethical sphere if not in the economic or the so-called practical, the defenders of capitalism have been apologetic. Either openly or by implication, they have admitted that socialism may be ethically superior.
 
But is it? That is the question I would like to examine this morning. It is a very large question, so large that if we are to treat it usefully we shall have to limit ourselves rather rigorously to its inner boundaries. We shall therefore merely note in passing that it has become a very urgent question, forced upon us by the fact that in the last thirty years a great part of the earth's population has abandoned capitalism and is now living under one or another of the various systems of socialism. This means--and we cannot close our eyes to the possibility of it--that the United States, too, may sooner or later abandon capitalism, for socialism seems to be the predominant trend. I say that we can only stop to notice this in passing, and the same thing is true of the various factors, not directly ethical, which are operating to make capitalism more difficult to retain. Some of these factors, so far as Americans are concerned, are operating from without rather than within: that is to say, if other countries give up the capitalist system, it becomes harder and harder for the United States to hold on to it, even if that is what Americans want. The reason is in the nature of international relationships, economic, political and all other.
 
There are also factors, however, which are operating just as strongly from within. The dilemmas of the capitalist system have not as yet been solved, and many of the people are impatient of the slowness of our social progress.
 
But to all this, as I say, we can pay no heed this morning, or we shall not have time to discuss the question we have set ourselves. Irrespective of whether socialism is advancing and capitalism retreating, or of how much freedom of decision may still remain to us, let us compare the two systems ethically. Is it true that, measured by ethical standards, capitalism is inferior?
 
Apparently, many churchmen seem to think so. Most of us have noticed, I suppose, that the churches are becoming friendlier to socialism. In Europe, this has been going on for a long time. The first British socialist leaders were not Marxists but Methodists: lay preachers whose moral repugnance for the poverty caused by economic exploitation led them step by step to reject the capitalist system entirely. On the continent, the churches' interest in socialism has been more doctrinal. In many cases, theology and Marxism, after a period of somewhat embarrassed flirtation, have attempted a sort of uncomfortable matrimony. Except, of course, in the case of the Roman Catholic Church, which has remained quite celibate as to Marxism, but has flirted almost openly with fascism.
 
In the United States, however, the process has been slower and its outlines less distinct. Radical church leaders have not so much embraced socialism as repudiated capitalism. But I think it is a fact, today, that some of the most vigorous among them are fairly close to socialism.
 
The thing to notice in this, so far as our present purpose is concerned, is not that such a fact may be counted lamentable but that it arises because the churchmen concerned, whether here or abroad, have come to believe that capitalism is ethically inadequate. It has been weighed in the balances, they tell us, and found wanting. But we seldom hear of ethical deficiencies in socialism: only of practical ones. And even the practical ones seem less easy to contend for, now that so many countries appear to be getting along fairly well under socialist regimes. Or at least almost as well as the United States did, a few years ago, in a capitalist depression.
 
What are we to say, then, of what is implied in all this: of the ethical claim for socialism? And of the ethical condemnation of capitalism?
Perhaps before we say anything more we had better have some working definitions. Not academic definitions, because that would involve us in endless argument, and in any case they would not be very useful for our purpose. By capitalism, let us mean the system which has prevailed in the Western world from the coming of the industrial revolution until recently, and let us include within its categories not only the classical capitalism, so called, of the nineteenth century, but also the changes and adaptations which have taken place subsequently. From the ethical standpoint, the distinguishing characteristics of capitalism are the profit motive and a strong attachment to freedom.
 
By socialism, let us intend those systems, whether parliamentary or other, which claim to get rid of the profit-making motive and which operate through government management and control. There is, I know, a wide divergence between some of these systems, both actual and proposed, and we shall presently have to take account of that. There is all the difference in the world, for instance, between British socialism and Soviet communism. Nevertheless, both intend to do away with the profit motive and both believe that by doing so a higher ethical position will be reached.
 
Concerning this common aim of the various socialist systems, we should perhaps cite some testimony. Karl Marx and Friedrich Engels, in the Communist Manifesto, tell us that "the theory of Communism may be summed up in one sentence: Abolish all private property." According to Joseph Stalin, in a speech at Sverdloff University in April, 1924, as soon as classes have been abolished and the means of production finally removed from the hands of capitalists, the dictatorship of the proletariat will be over and even the Communist Party itself will disappear. We will assume that he meant it. If so, the Soviet intent would be similar in the end to the socialist aims of other countries. The profit motive would be ended. There would thereafter be no need for tyranny, and so--according to the communist contention--socialism would be, not dictatorial but free and voluntary.
 
At this point, however, do as we will, our definition takes us into argument. In the case of Sovietism, freedom is only a promise and unless appearances amazingly deceive us, a promise which is very unlikely to be kept. No people, as yet, which has come under Soviet control, has increased its freedom, and there is no basis whatever, beyond the promises of Soviet spokesmen, for supposing that any people ever will. On the contrary, in order to remain in power, the Soviet leaders must maintain what has come to be called a "police state," and there is nothing visible in their procedures which makes it likely that Sovietism will end up as freedom.
 
If therefore, we believe that freedom is ethically nobler than slavery, and that for the sake of freedom it is worth while to give up some other things, we shall have to say that the Soviet variety of socialism is most assuredly not superior to capitalism, since capitalism, whatever its faults, does permit people to remain fairly free.
Moreover, if it be claimed that the capitalist system degrades people through its admission of the profit motive, it will have to be noticed that the Soviet system, in spite of eliminating the profit motive, or attempting to do so, degrades people much more seriously. For what else is it but degradation when freedom of information, freedom of thought, freedom of speech, freedom of assembly, freedom of every kind is suppressed? And what can it be but degradation when people are forcibly prevented from having a share in deciding their own way of life, their own future, their own destiny? Not to mention the gross degradation of slave camps and enforced labor; or the degradation of unjust imprisonment and death.
 
Nor is this the end of the matter, as we all know. But it is sufficient to exclude the claim of Sovietism that it is ethically superior to capitalism. For here we are comparing fact with fact: the facts of capitalism, some of which have been very bad, such for instance as pauperization, child labor, economic imperialism, unbridled greed for profits--such facts as these--with the facts of Sovietism which are much worse. Moreover, while the worst features of capitalism have at least in part been remedied, the evils of Sovietism appear worse now than at the beginning. To the extent, therefore, that Sovietism is socialism, it must be judged ethically inferior to capitalism, and by a wide margin, on the actual basis of the record.
 
But then, there are many socialists who would say so, too. They wish the word socialism to be reserved for parliamentary socialism, or socialism with civil rights; in short, for socialism as it obtains, for example, in England at the present time. This is a distinction which, for my own part, I am happy to accept. If the term communism could be reserved for the Soviet system, and perhaps for such others as that of Yugoslavia, and the word socialism for the British system and whatever counterparts may presently emerge, it would doubtless be a good thing.
 
Here, however, we can no longer compare fact with fact. For the British kind of socialist--let us call him the civil rights socialist--would demand that we take into consideration not only what socialism has accomplished but what it promises. This makes comparison somewhat difficult and I must confess to certain apprehensions as to whether the promises in question can really be fulfilled. But for the purpose of the present discussion I will assume that they can, or at least that some of them can.


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