distinction between
manufacturing for use and manufacturing for profit, except this, that
no manufacturer will give his time and trouble, and run considerable
risks, without adequate compensation. The complaint must therefore be
limited to the fact that the employer of labour makes a profit. The
question now arises: "What does the manufacturer do with his
earnings?" In the vast majority of cases he will use by far the larger
part of his profits for renewing machinery and enlarging his works,
and thus increase the national capital and the national power of
production, spending privately only a director's salary which he would
also receive as a director-employee of the Socialist commonwealth.
"The employer who works without a profit breaks himself,"[133] and in
breaking himself he breaks up the factory. Universal production
regardless of profit would lead to universal bankruptcy, whilst the
curtailing of profits may lead to a proportionate curtailment in the
expansion of industry and in the production of articles for use, and
to general poverty. It has the same effect whether the workers destroy
the capitalist's capital or whether they break the machinery and
devastate the corn-fields.

The complaints of the Socialists as to the way in which the workers
are exploited by the capitalist class are founded not only on
arguments such as those given in the foregoing but on figures as well,
and these are exceedingly curious and interesting. Under titles such
as "How the Worker is Robbed,"[134] statements are made every day, and
by all Socialists, which are to prove that the national income is
inequitably divided between capitalists and workers. These statements
are calculated to make every workman's blood boil, and they seem to
confirm the contention of the Socialists that the capitalists
inhumanely plunder the working masses. However, these figures are so
palpably false and so grossly misleading that attention cannot
sufficiently strongly be drawn to the deception which is constantly
being practised upon the workers. I hope, therefore, that my readers
will patiently and carefully consider the following.

The figures relating to the yearly income of the "capitalist class"
and the "working class" which are given in innumerable Socialistic
writings, and which are brought forward at almost every Socialist
meeting and lecture, are usually taken from a pamphlet entitled
"Facts for Socialists from the Political Economists and
Stati