ll
essentials--The Ricardians and their precursors--Superior method
and insight of Marx--The sociological viewpoint in economics--Mr.
W. H. Mallock's criticisms of Marx based upon misrepresentation
and misstatement--Marx on the Gotha Programme of the German Social
Democracy--Marx on the "ability of the directing few"--No ethical
deductions in the Marxian theory--"Scientific Socialism,"
criticisms of the term 201

CHAPTER VIII

OUTLINES OF SOCIALIST ECONOMIC THEORY

The sociological viewpoint pervades all Marx's work--Commodities
defined--Use-values and economic values--Exchange of commodities
through the medium of money--The labor theory of value in its
crude form--Marx and Benjamin Franklin--Some notable statements by
the classic economists--Scientific development of the labor theory
of value by Marx--"Unique values"--Price and value--Money as a
price-expression and as a commodity--The theory of supply and
demand as determinants of value--The "Austrian" theory of final
utility as the determinant of value--The Marxian theory not
necessarily exclusive of the theory of final, or marginal,
utility--Labor-power as a commodity--Wages, its price, determined
as the prices of all other commodities are--Wherein labor-power
differs from all other commodities--"Surplus Value": why Marx used
the term--The theory stated--The division of surplus value--No
moral judgment involved in the theory--Other theories of the
source of capitalist income--Wherein they fail to solve the
problem--Fundamental importance of the doctrine 235

CHAPTER IX

OUTLINES OF THE SOCIALIST STATE

Detailed specifications impossible--Principles which must
characterize it--Man's egoism and sociability--Socialism and
Individualism not opposites--The idea of the Socialist state as a
huge bureaucracy--Mr. Anstey's picture and Herbert Spencer's
fear--Justification of this view in Socialist propaganda
literature--Means of production, individual and social--Professor
Goldwin Smith's question--The Socialist ideal of individual
liberty--Absolute personal liberty not possible--Spencer's
abandonment of _laissez faire_--Political organization of
Socialist regime must be democratic--Automatic democracy
unattainable--The need of eternal vigilance--Delegated
authority--The rights of the individual and of society briefly
stated--Private property and industry not incompatible with
Socialism--Public