He arrogantly looks down upon mankind, dissipating what would suffice to keep alive a hundred human beings, and propagates the infamous illusion that his unbridled extravagance and ceaseless, unproductive consumption is a condition of the labor, and, hence, subsistence of the others. For him, the realization of man's essential powers is simply the realization of his own disorderly existence, his whims, and his capricious and bizarre notions. But this wealth, which regards wealth as a mere means, worthy only of destruction, and which is therefore both slave and master, both generous and mean, capricious, conceited, presumptuous, refined, cultured, and ingenious -- this wealth has not yet experienced wealth as an entirely alien power over itself; it sees in wealth nothing more than its own power, the final aim of which is not wealth but consumption... [Here, the bottom of the page is gone, losing perhaps three or four lines] ... and the glittering illusion about the nature of wealth -- an illusion which derives from its sensuous appearance -- is confronted by the working, sober, prosaic, economical industrialist who is enlightened about the nature of wealth and who not only provides a wider range of opportunities for the other's self-indulgence and flatters him through his products -- for his products are so many base compliments to the appetites of the spendthrift -- but also manages to appropriate for himself in the only useful way the other's dwindling power. So if industrial wealth at first appears to be the product of extravagant, fantastic wealth, in its inherent course of development it actively supplants the latter. For the fall in the interest on money is a necessary consequence and result of industrial development.
Therefore, the means of the extravagant rentier diminish daily in inverse proportion to the growing possibilities and temptations of pleasure. He must, therefore, either consume his capital himself, and in so doing bring about his own ruin, or become an industrial capitalist.... On the other hand, it is true that there is a direct and constant rise in the rent of land as a result of industrial development, but as we have already seen there inevitably comes a time when landed property, like every other kind of property, falls into the category of capital which reproduces itself with profit -- and this is a result of the same industrial development.
Therefore, even the extravagant landlord is forced either to consume his capital -- i.e., ruin himself -- or become the tenant farmer of his own property -- an agricultural industrialist.
The decline in the rate of interest -- which Proudhon regards as the abolition of capital and as a tendency towards the socialization of capital -- is therefore rather a direct symptom of the complete victory of working capital over prodigal wealth -- i.e., the transformation of all private property into industrial capital. It is the complete victory of private property over all those of its qualities which are still apparently human and the total subjugation of the property owner to the essence of private property -- labor. To be sure, the industrial capitalist also seek s enjoyment. He does not by any means regress to an unnatural simplicity of need, but his enjoyment is only incidental, a means of relaxation; it is subordinated to production, it is a calculated and even an economical form of pleasure, for it is charged as an expense of capital; the sum dissipated may therefore not be in excess of what can be replaced by the reproduction of capital with profit. Enjoyment is, therefore, subsumed under capital, and the pleasure-seeking individual under the capitalizing individual, whereas earlier the contrary was the case. The decline in the rate of interest is therefore a symptom of the abolition of capital only insofar as it is a symptom of the growing domination of capital, of that growing estrangement which is hastening towards its own abolition. This is the only way in which that which exists affirms its opposite.
The wrangle among political economists about luxury and saving is therefore merely a wrangle between that section of political economy which has become aware of the nature of wealth and that section which is still imprisoned within romantic and anti-industrial memories. But neither of them knows how to express the object of the controversy in simple terms, and neither of them is therefore in a position to clinch the argument.
Furthermore, the rent of land qua rent of land has been abolished, for the argument of the Physiocrats, who say that the landowner is the only true producer, has been demolished by the political economists, who show that the landowner as such is the only completely unproductive rentier.
Agriculture is a matter for the capitalist, who invests his capital in this way when he can expect to make a normal profit. The argument of the Physiocrats that landed property, as the only productive property, should alone pay state taxes and should therefore alone give its consent to them and take part in state affairs, is turned into the opposite argument that the tax on rent of land is the only tax on unproductive income and hence the only tax which does not harm national production. Naturally, it follows from this argument that the landowner can no longer derive political privileges from his position as principal tax-payer.
Everything which Proudhon interprets as the growing power of labor as against capital is simply the growing power of labor in the form of capital, industrial capital, as against capital which is not consumed as capital -- i.e, industrially. And this development is on its way to victory -- i.e., the victory of industrial capital.
Clearly, then, it is only when labor is grasped as the essence of private property that the development of the economy as such can be analyzed in its real determinateness.
