The value of an article is determined solely by the amount of labor
expended upon its production. But although the laborer creates all
wealth, the capitalist is enabled, by virtue of his monopolistic
control over the instruments of production, to prevent this wealth
from going entirely to the laborer. [Footnote: By "capitalists"
socialism means not only individuals with money to loan, but
"employers" in general, whether middlemen, entrepreneurs, or true
capitalists. ] Socialism declares that the capitalist holds the
laborer in virtual slavery, the laborer receiving only enough of the
wealth created by him to enable him to keep alive, while the surplus
of this wealth goes to the capitalist. The capitalist is thus a
parasite who performs no useful task, but robs the laborers of the
fruits of their industry. Marx did not regard profits as reward for
business enterprise, but called them "plunder." Capitalism, according
to this view, is a system of theft, involving "misery, oppression,
slavery, degradation, and exploitation."

128. CLASS STRUGGLE.--Marx declared that the capitalistic system was
doomed to destruction. He maintained that as time went on, wealth
would tend to concentrate more and more in the hands of the capitalist
or employing class. Trusts and monopolies would become more common,
and gradually capitalism would become so unwieldy and so unworkable a
mechanism that it would finally fall to pieces of its own weight.
Crises, panics, and trade depressions were supposed to be indications
of this inevitable disaster.

The tendency for wealth to concentrate in the hands of a few was to be
accompanied by the growing poverty of the masses. Marx believed that
the middle classes would eventually disappear, leaving only the
wealthy employers and the miserable laborers. The individuals