George Bernard Shaw, The Intelligent Woman’s Guide to Socialism, Capitalism, Sovietism and Fascism, foreword by Polly Toynbee (London: Alma Classics 2012).
Introduction
This is a great book. It’s the kind of book on socialism I was very much looking for in the 1980s when the papers were all praising Margaret Thatcher and alleged superiority of capitalism to the heavens. What I wanted then was a classic defence of socialism, which clearly showed the destructive nature and defects of capitalism, and how these would be removed for the better under a proper socialist government with a clear idea of what needed to be done and how it could be achieved.
This is a rather long review, so I’ve split up into four parts.
The book was written between 1924 and 1928, when it was first published. George Bernard Shaw is one of the great figures in British socialism. An Irishman, he was one of the founders of the Fabian Society along with Sidney and Beatrice Webb, and editor of its anthology of socialist writings, Fabian Essays. He’s best known for his play Pygamalion, about a linguist, Henry Higgins, who takes Eliza, a rough working class girl, and tries to mould her so she can pass as a lady of the genteel classes. It was filmed as the musical My Fair Lady, starring Rex Harrison.
Shaw wrote it between 1924 and 1928, when it was published, at the request of his sister-in-law, Lady Cholmondley. She had asked him to write a letter explaining socialism for women. Shaw looked into it, and discovered that amongst the masses of literature about socialism, there weren’t any books that realised that there were such creatures. And, he adds in his ‘Instead of a Bibliography’, very few that recognised the existence of men either. The book’s addressed to a female audience. The reader is a ‘she’ and the examples given are taken from women’s lives, jobs and experience. Shaw recognises that most women are occupied as wives and mothers, or shop girls and workers in the great weaving mills, the common female roles at the time. But he also recognises and fully supports the fact that more professions were being opened up to women in science, law, medicine and so on. If done badly, this approach by a male writer can seem patronising, but Shaw, as a great writer, manages to avoid it. And even though it’s aimed at women, I greatly enjoyed it, and would recommend it to other blokes.
Capital, Equality of Incomes and Imperialism
Shaw tries to present complex ideas about capitalism by simplifying them down to the level of ordinary people’s housekeeping or domestic economy. He defines capital as left over money. It’s the money you have left after spending your income on rent, food and so on. This is the money that the idle rich, the landlords, invest in industry. And money’s only real value is for the food and clothing that it will purchase. You cannot eat money, and the food it will buy must be eaten or else it will be spoilt. Which means that money must be invested and used, rather than stored up.
At the heart of Shaw’s view of socialism is the equalization of incomes. He believed that everyone should earn exactly the same amount. Capitalism had created vast inequalities of wealth. On the one hand there was a small minority of the idle rich, who had to invent pastimes and diversions in order to use up their wealth. On the other was the vast mass of the poor, living at or near starvation level. He begins by asking the reader how they would divide up the nation’s wealth, challenging the reader to think for herself rather than let him do her thinking for her. He then proceeds to argue that it is impossible to decide that one person should be paid more or less than another because of their personal morality or ability. He sharply criticises the quasi-feudal economy of his day, when 90 per cent of the country worked to support the gentry, who only comprised ten per cent of the country’s population. They do nothing for it, don’t benefit from it, as they can’t personally eat or drink more than anyone else. And instead of investing it, they simply take it out of the country to invest it or spend it abroad. He also attacks British imperialism for this same thing. It hasn’t benefited the peoples we have conquered nor British tradespeople, businessmen and workers. It has led to the exploitation of Blacks abroad, who can paid far less than their British counterparts. Thus Britain is flooded with cheap imports, and British companies are going bust and their workers laid off.
The Progress of Capitalism and Decline of the Businessman Owner
Shaw then describes how the middle class have their origins as the younger sons of the aristocracy, with a few acute remarks on the absurd gradations of class which meant that a wholesaler was socially superior to a retailer. His father was a businessman, who had been a member of the gentry. As such he looked down on the elite Dublin shopkeepers, even though they were richer and entertained the local Irish aristocracy, which he very definitely couldn’t. But business was changing. The age of the small businessman in personal possession of his business, was giving way to joint-stock companies owned by their shareholders and managed by professional, salaried staff. Under pressure from the unions, they were combining to form monopolistic trusts. This made them ready for nationalisation.
Nationalisation and the Coal Industry
He presents the coal industry as particularly needing nationalisation. At the time he wrote, there were a number of different mining companies. Some worked poor mines and were close to bankruptcy, others very rich. However, miners wages were set at the level the poor mines could afford, which was near starvation. Coal prices were set for the rich mines, and so prices were high. The miners were thus being starved and the consumer overcharged. The mines should thus be nationalised so that the workers were paid a fair wage, and the consumer a fair price. Shaw advocated nationalisation so that costs and prices could be brought down and goods sold at cost price.
Banks and the Stock Market
He also discusses and explains finance capitalism, stocks and shares, debentures, futures and the stock market. He warns the reader against get-rich-quick scams, like the bucket shops which will charge his prices for very risky shares. If people want to invest, they should do so with the government or municipality. Their shares won’t provide a great yield, but they will be safe. He recommends that banks should be nationalised because of the problems the small businessman had acquiring capital. The big businesses rely on financiers, who certainly won’t lend the small businessman wanting a modest loan anything. Neither will the banks. He pointed to Birmingham as an example for the future, as it had established a municipal bank to serve the customers the big banks wouldn’t.