Hence a state of affairs which towards the middle of the last century
appeared to be both cruel and threatening. It was therefore natural
that the following question be raised: "If the state is created for
the welfare of its citizens, severally considered, how can it tolerate
an economic system which divides the population into a small minority
of exploiters, the capitalists, on one side, and an immense multitude
of exploited, the working people, on the other?" No! The state must
again intervene and give rise to a different and less iniquitous
economic organization, by abolishing private property, by assuming
direct control of all production, and by organizing it in such a way
that the products of labor be distributed solely among those who
create them, viz., the working classes. Hence we find Socialism, with
its new economic organization of society, abolishing private ownership
of capital and of the instruments and means of production, socializing
the product, suppressing the extra profit of capital, and turning over
to the working class the entire output of the productive processes. It
is evident that Socialism contains and surpasses Democracy in the same
way that Democracy comprises and surpasses Liberalism, being a more
advanced development of the same fundamental concept. Socialism in its
turn generates the still more extreme doctrine of Bolshevism which
demands the violent suppression of the holders of capital, the
dictatorship of the proletariat, as means for a fairer economic
organization of society and for the rescue of the laboring classes
from capitalistic exploitation.

Thus Liberalism, Democracy, and Socialism, appear to be, as they are
in reality, not only the offspring of one and the same theory of
government, but also logical derivations one of the other. Logically
developed Liberalism leads to Democracy; the logical development of
Democracy issues into Socialism. It is true that for many years, and