Socialism

While Americans argued over slavery, Europe had begun to divide over what began to be called “wage slavery.” Just as the liberalism of Locke and Mill and capitalism of Smith had become the pillars of the social and economic order, an English economist named David Ricardo observed that the value of traded things — commodities — is determined by the quantity of labor needed to produce them, which industrialization made variable, rather than the material from which it comes, which remained more or less fixed.

This idea caught fire in the mind of Karl Marx, a German intellectual exiled in England who was then observing the new industrial economy. Marx concluded that capitalists — people with money beyond that needed for well-being, also known as capital invested in productive ventures — make profits from the difference between the costs of production (the labor and raw materials they pay for) and the market price they obtain. A key advantage in the process lies in the difference between what it costs for workers to stay alive and the ultimate price of the goods they make, which Marx called “surplus value”; this is what, Marx argued, capitalists take from workers.

Marx did not blame capitalists, whom he saw as trapped within the rules; instead, he viewed the economic system and capital itself as the cause of the surplus value theft. No real change would occur, he proposed, until control of production and markets was in the hands of all society, especially the workers.

The idea first appeared in a document called the Communist Manifesto, which Marx wrote with fellow exile Friedrich Engels in 1848. It was a fast and furious summary of complex ideas, written just as worker revolts broke out in the most widespread revolutionary wave in European history, from France to as far as Hungary. This was the dawn of what would be called the socialist movement, its ideas later developed in detail in many books, especially the three-volume Capital. Their key and simplest concept would prove maddeningly difficult to bring about.

To understand what was to happen in the United States, we need to review the emergence of socialism in Europe, which occurred in four steps: 1) the proto-socialism that built up to Marx and the First International; 2) Anarchism; 3) labor unions and 4) a broad-based debate within socialism between reform and revolution. All of this took place between from about the 1820s to the 1880s and a little beyond.

Slavery

The United States simmered to a boil over what South Carolinian lawmaker John Calhoun called the “peculiar institution” in the American South. At odds were two regions:

• a Southern agrarian society organized as a caste system supported by unpaid laborers brought from Africa sold as chattel; 
• in the North a new kind of social order based on capital and industry, which fed on immigrants recruited to work for bare survival wages in the North’s Blakean “Satanic mills.”

Americans did not think of the problems in the terms of social sciences that were then very new, but rather in terms of the national Messianism developed by the first Protestant English dissenters in Massachusetts. In a 1630 sermon delivered at sea, Puritan leader John Winthrop told his little community that they would be building “a city upon a hill” (Matthew 5:14) watched by the world and urged them to set an example of communal charity, affection and unity; if they failed, he warned, “we shall be made a story and a by-word through the world” of God’s judgment.

Slavery supporters pointed to the St. Paul’s Letter to Philemon, which addressed a Christian slave owner; the letter was carried by Onesimus, a runaway slave baptized by Paul and persuaded to return to his master. Christians of the Confederacy saw this as biblical writ for slavery; however, U.S. slavery was vastly unlike the slave system of antiquity St. Paul knew, particularly in the degree of dehumanization imposed on kidnapped Africans, including lifelong hereditary servitude.

Abolitionists could also point to Paul’s urging Philemon to treat the runaway no longer as a slave but as a brother in the faith, which he apparently did, to the point that Onesimus eventually became a bishop of the Church at Ephesus. In the wake of Protestant movements such as the Great Awakening and Pietism, both of which stressed personal transformation through spiritual rebirth and renewal, as well as individual devotion and piety, many Christians in the North supported Abraham Lincoln’s distinctly biblical oratory on the subject; they were supporters of escaped slaves’ “Underground Railroad” and embraced the fiery anti-slavery militancy of the renown insurgent John Brown.