SOCIALISM is a word having two dis tinct but related meanings: primarily it is used as the name of a certain philosophy of history and method of interpreting and analyzing social phenomena. In the second place, since this philosophy and method have as one of their principal conclusions that society is evolving toward a co-operative social stage, the word is used to designate a co-operative social organiza tion where the means for the production and distribution of wealth are the collective prop erty of the working class, while the goods which are to be consumed become the private property of the individual workers. The phi losophy of Socialism, as generally accepted by the socialist parties of the world at the present time, takes as its fundamental hypothesis what has been variously called the materialistic in terpretation of history, historic materialism, or economic determinism. This doctrine is stated as follows in the introduction to the
These inherited characteristics include customs, laws, ethical standards, public opinion, and in short the whole set of institutions and social psychology which has been built up through out the course of human evolution. The analogy between heredity and environment in biology and in the social organism is here very close. • Since the appearance of the institution of private property in the instruments by which wealth is produced and distributed, society has necessarily been divided into two classes ac cording as their members own or do not own these essential for the production of wealth. The struggle of these classes for power consti tutes a large portion of the history of modern times. In the Middle Ages, land being the most essential instrument for the production of wealth, the landlords were the ruling class and social institutions were determined by them in accord ance with their interests. When the great trans formation of hand tools into factory machinery took place at the close of the 18th and beginning of the 19th century, this machinery of the modern factory became the most essential cle ment in the production of wealth, and its own ers became the ruling class.
When the owners of industrial capital had gained their victory they set about establishing a society in accordance with their interests. They formed at this time the class most neces sary to the basic industrial processes of society, since the accumulation and organization of cap ital was the most essential thing at this histori cal period. Later on the capitalist class laid down its function as organizer and director of industry and became simply a share-holding class. Hired wage-workers, including manual laborers, overseers, bosses and superintendents perform all the essential social processes. The capitalist class having handed over its function to the working class, the latter becomes not only the most essential, but the only essential class. The material interests of this class in volve it in continuous struggles with the capital ists. Sooner or later this struggle is transferred to the political field where the laboring class is represented by the Socialist party, having as its object the capture of i the powers of govern ment and social control n order that it may use them in the interest of that class.