George Bernard Shaw, The Intelligent Woman’s Guide to Socialism, Capitalism, Sovietism and Fascism, foreword by Polly Toynbee (London: Alma Classics 2012).
Trade Unions
He discusses the unions, which he describes as ‘proletarian capitalists’. They are there to protect the workers, who have to sell their labour just as the businessman has to sell the product they create. Unions are there to ensure the workers are able to charge the highest price they can for their labour. He also discusses strikes and lockouts, including the violence of some industrial disputes. Scabs need police protection against being beaten, and angry workers will tamper with the equipment so that anyone using it will be injured. They will also place fulminate of mercury in chimneys to cause an explosion if someone starts up the furnaces.
Party Politics and Socialism
Shaw describes the class conflict between the Tories, representing the aristocracy, and the Liberals, who represented the industrial middle classes. These competed for working class votes by extending the franchise and passing legislation like the Factory Acts to improve working conditions. However, each was as bad the other. The aristocracy kept their workers in poverty in the countryside, while the middle classes exploited them in the factories. The laws they passed for the working poor were partly designed to attack their opponents of the opposite class.
He goes on to give a brief history of British socialism, beginning with Marx, William Morris’ Socialist League, and Hyndeman’s Social Democratic Federation. These were small, middle class groups, disconnected from the British working class through their opposition to trade unions and the cooperatives. It was only when British socialism combined with them under Keir Hardie and the Independent Labour Party that socialism became a real force in working class politics. The Fabian Society has been an important part of this, and has made socialism respectable so that the genteel middle classes may join it as Conservatives join their Constitutional Club.
Shaw believed that socialism would advance, simply because of the numerical supremacy of the working classes, and that soon parliament would be full of Labour MPs. However, he also recognised that many members of the proletariat were anti-Socialist. This is because they depended for their livelihood on the businesses serving the idle rich. He called this section of the working class the ‘parasitic proletariat’. The working class is also distracted away from socialism through lotteries and so on.
Democratic, Parliamentary Socialism and Nationalisation
Shaw argues strongly that socialism could only be established through democratic, parliamentary action. General strikes wouldn’t work, as the employers would simply starve the workers out. The strikes intended to stop the outbreak of the First World War had failed the moment the first bomb dropped killing babies. Violent revolutions were purely destructive. Apart from the human lives lost, they destroyed the country’s vital industrial and economic structure. Socialism needed to build on this, not destroy it. Similarly, confiscating the capitalists’ wealth, either directly through nationalisation without compensation, or by taxing capital, was also counterproductive. The capitalists would simply sell their shares or unwillingly surrender them. The result would be bankruptcy and mass unemployment. This would result in further working class unrest, which would end in a counterrevolution.
The only way socialism could proceed would be by long preparation. You should only nationalise an industry once there was a suitable government department to run it. Compensation should be given to the former proprietors. This did not mean robbing the workers to pay their former exploiters, as the money would come from taxing the upper classes so that the class as a whole would be slightly worse off than before, even though the former owners were slightly better off. You can see here and in Shaw’s warning of the ineffectiveness of general strikes the bitterness that still lingered amongst the working class after the failure of the General Strike of the 1920s.
Nationalisation could also only be done through parliament. There were, however, problems with parliamentary party politics. If the socialist party grew too big, it would split into competing factions divided on other issues, whose squabbles would defeat the overall purpose. Party politics were also a hindrance, in that it meant that one party would always oppose the policies of the other, even though they secretly supported them, because that was how the system worked. We’ve seen it in our day when the Tories before the 2010 election made a great show of opposing Blair’s hospital closures, but when in power did exactly the same and worse. Shaw recommends instead that the political process should follow that of the municipalities, where party divisions were still high, but where the process of legislation was done through committees and so on parties were better able to cooperate.
Limited Role for Capitalism
Shaw also argued against total nationalisation. He begins the book by stating that socialists don’t want to nationalise personal wealth. They weren’t going to seize women’s jewels, nor prevent a woman making extra cash for herself by singing in public or raising prize chrysanthemums, although it might in time be considered bad form to do so. Only big, routine businesses would be nationalised. Small businesses would be encouraged, as would innovatory private companies, though once they became routine they too would eventually be taken over by the state.
It’s a great argument for a pluralistic mixed economy, of the type that produced solid economic growth and working class prosperity after World War II, right up to 1979 and Thatcher’s victory.
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