CHAPTER 9 THE INFLUENCE OF THE DIVISION OF LABOR ON THE INSTITUTIONS OF CAPITALISM PART A PRIVATE OWNERSHIP OF THE MEANS OF PRODUCTION 1. The General Benefit from Private Ownership of the Means of Production The influence of the division of labor on the institu- tion of private ownership of the means of produc- tion is almost universally ignored. Typically, people think of privately owned means of production in terms that would be appropriate only in a non-division-of-labor society. That is, they think of them in the same way that they think of privately owned consumers' goods--namely, as being of benefit only to their owners. They believe that before the nonowners can benefit from the means of production, they must first become owners. 1 This belief underlies the popularity of all forms of "redistributionism" and socialism. 2 People believe that so long as wealth remains concentrated in the hands of a relatively small number of capitalists, the capitalists alone benefit from it. For the great mass of noncapitalists to benefit, it is believed, the wealth of the capitalists must first be taken away and given to the noncapitalists, or be held by the government and used for the collective good of all. Closely related to these ideas, of course, is the be- lief--held virtually as a self-evident axiom--that capi- talism is a system which operates only in the interests of the capitalists, and that the defenders of capitalism must therefore either be capitalists themselves or be in the pay of the capitalists, or else simply be perverse enemies of the great majority of mankind. So deeply rooted are such convictions that it is often thought to be a sufficient refutation of the arguments of an advocate of capitalism to intimate the size of his bank balance or stockholdings. 3 Similarly, in reporting election results, the news media routinely explain voting patterns on the basis of the voters' wealth and income status. They take it for granted that only wealthy, upper-income voters will favor "con- servative," i.e., procapitalist policies, and that poorer, lower-income voters will automatically favor "liberal," i.e., anticapitalist policies. Even the alleged friends of capitalism often share the conviction that private ownership of the means of pro- duction and capitalism serve only the capitalists: very often their notion of how to fight the spread of commu- nism is first to create more capitalists. Only then, they believe, will there be a sufficient number of people with an interest in opposing communism. The Benefit of Capital to the Buyers of Products The first thing that must be realized is that in a division- of-labor society, all private property that is in the form of means of production--i.e., of capital--serves everyone, nonowners as well as owners. In a division-of-labor society, the means of production are not used in produc- -296- |