involved in their production. A sudden change in fashion may cause the
value of clothing and other commodities to rise or fall, with little
or no regard for the amount of labor expended upon them. In each case
it is not labor that determines value, but scarcity and utility.

160. LABOR NOT THE ONLY FACTOR IN PRODUCTION.--Labor is an important
factor in production, but land, capital, coördination, and government
are also of vital importance to any modern industrial community. The
great error of the socialist is that he over-estimates the importance
of the laborer, and minimizes or altogether denies the importance of
the individuals with whom the laborer coöperates in production. This
error is explainable: the laborer does most of the visible and
physical work of production, while the part played by the landowner,
the capitalist, and the entrepreneur is less physical and often is
apparently less direct. The complexity of the industrial mechanism
very often prevents the laborer from appreciating the true relation
existing between his own physical labor, and the apparently indirect
and often non-physical efforts of those who coöperate with him. It is
in this connection that producers' coöperation and bolshevism have
performed a great service. They have demonstrated, by the out-and-out
elimination of the managing employer, that the laborer alone cannot
carry on modern industry. Such actual demonstrations of the value of
factors of production other than labor are of far more service in
correcting the viewpoint of the socialist than is any amount of
theoretical argument.

161. THEORY OF CLASS STRUGGLE UNWARRANTED.--The theory of class
struggle is based upon the claim that the laborer produces all wealth.
But we have seen this claim to be unfounded; therefore the theory of
class struggle is built upon an error. Ultimately, the theory of class