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    Chapter 5: Class War

    By Punkerslut

    Start Date: April 28, 2002
    Finish Date: June 25, 2002

    "Is it necessary to repeat here the irrefutable arguments of Socialism which no bourgeois economist has yet succeeded in disproving? What is property, what is capital in their present form? For the capitalist and the property owner they mean the power and the right, guaranteed by the State, to live without working. And since neither property nor capital produces anything when not fertilized by labor - that means the power and the right to live by exploiting the work of someone else, the right to exploit the work of those who possess neither property nor capital and who thus are forced to sell their productive power to the lucky owners of both. Note that I have left out of account altogether the following question: In what way did property and capital ever fall into the hands of their present owners? This is a question which, when envisaged from the points of view of history, logic, and justice, cannot be answered in any other way but one which would serve as an indictment against the present owners. I shall therefore confine myself here to the statement that property owners and capitalists, inasmuch as they live not by their own productive labor but by getting land rent, house rent, interest upon their capital, or by speculation on land, buildings, and capital, or by the commercial and industrial exploitation of the manual labor of the proletariat, all live at the expense of the proletariat." -- Mikhail Bakunin, "The Capitalist System," This pamphlet is an excerpt from The Knouto-Germanic Empire and the Social Revolution and included in The Complete Works of Michael Bakunin under the title "Fragment." Parts of the text were originally translated into English by G.P. Maximoff for his anthology of Bakunin's writings, with missing paragraphs translated by Jeff Stein from the Spanish edition, Diego Abad de Santillan, trans. (Buenos Aires 1926) vol. III, pp. 181-196.

    Section I: Introduction

         In the previous chapters, I discussed the failure of Capitalism to appeal to any sort of humane sentiments in its mechanics. I showed statistics, evidence, and proof that it fails to offer a living wage to the worker, both in the United States and in Third World countries. Various accounts confirm and confirm again that Capitalism will allow bosses and other authorities to abuse the workers when the workers are put into a situation where they need a wage. And thus, with the coming of the Industrial Revolution, there has also been a complete dependence upon the wage from the worker. Without it, he cannot feed himself or his family. Since the Capitalist class only offers poor conditions, poor wages, and high hours -- any sort of brutality that will increase profit -- the worker class must consent, because if they do not, they will starve to death. This vicious system, which promotes coercion and brutality, is called Capitalism. Some mistake it for freedom. They are among the uneducated.

    Section II: The War of Classes

         So we have seen, the rights of the workers do not extend quite far in the Capitalist system. Even those who work 16 hours a day may only get enough money to support themselves, with only several hundred dollars per year as luxury money. Nike workers are exposed to toxic chemicals and work in terrible conditions. The plight of the worker is abominable and cannot be tolerated. When the workers rise up and revolt against this iniquity, this crude and barbaric system, what occurs is a Class War. A Class War is a clash of the antagonisms between class and it certainly exists. There may be those who claim that it is little more than a propaganda tool used by the Communists and the Socialists to instill a sense of passion into the masses.

         Workers may strike for better wages, better hours, and better conditions. By doing this, they are clashing with the Capitalist class -- the class that owns capital, the means of production. This is a rather simple display of a Class War, and one that has existed in every society that has tolerated injustice. This divided gulf, between the owners of the factories, of the farms, of the stores, and those who own nothing, is what allows such class antagonisms to exist. The workers, the Proletariat, own nothing, so they must sell their labor force as a commodity. They will give their blood and sweat for a weekly wage, one so low that it will be only enough to support themselves and possibly their family. If the Proletariat demand rights, if they demand liberty and humane treatment, decent working hours and decent working wages, then we have a Class War. If the Capitalist class gives in to the demands of the working class, they may respond by increasing prices (even though an increase in wages may even be less than a 1/100th cut in profit). What we then find is the Middle Class. They are, like the Proletariat, workers, but they are economically better off. They are skilled, educated, or in some manner or fashion, more valuable to the employer. The Middle Class has its wealth based on the Proletariat, though, just as the Capitalists do. The reason why the Middle Class is offered better conditions, hours, and wages, is because there are so few of them, compared to the masses of unskilled, uneducated Proletariat workers. So the Middle Class may respond to the increase in price by purchasing their products elsewhere, and so the Proletariat Class, the Middle Class, and the Capitalist Class, all clash, either seeking to make millions in an investment, seeking to buy that new car, or seeking the ultimate conquest of bread. In this world of Capitalism, the extremes of poverty of wealth are so vastly separated, yet so easily seen, it is hard to accept the fact that Capitalism has existed for so long. But only a brief education in history will show that Capitalism has been bitterly opposed by leagues of Humanitarians, that it has been staunchly defended by the servants of injustice, that it has done nothing but bring famine and plight to the lands that it touches.

         Some Capitalists may smile when they see how some workers obtain an amount of luxury money between $20 to $200 a month. They may say, "So, you see! They can get by in our system with making enough money to live." But the worker who works 15 hours a day, sleeps 8 hours, and does what he wants with his $30 of monthly leisure money in one hour -- is this anything to be proud of in a system? It is quite disturbing that the lowest class in our society produces the goods that it can never taste. They build the cars, the palaces, the expensive clothing, yet they barely make enough for themselves to live. This "success" of Capitalism is simply providing people with enough money for slaving 12, 13, or 14 hours a day. Socialism is not at all about slavery. Providing the working class with what they need to survive -- food, shelter, clothing -- is only a fraction of what Socialism is about. It is also about providing the workers with a significant amount of money so that they can taste the fruits of the society that they themselves have made!

         Some media figures may praise war and Imperialism, all the while constantly referring to the blessing of freedom that comes with Capitalism. Such individuals can be seen as kindly rewarded by the Capitalist class which they defend. These media figures may boast constantly of the wealthiest nations on the world, but only a glance at such nations will provide the viewer with the knowledge that such media figures strictly refer to the Capitalist class. If we were to look into the neighborhoods, the apartments, the alleyways, we don't find wealth. We find poverty, unemployment, homelessness -- all products of Capitalism. Yet it will still be boasted that Capitalism is the origin of wealth, when in fact, it allows employers to pay such a low and terrible wage to its workers. The Proletariat, needing food and water and shelter like any other human being, will sell their blood if it keeps them alive, and so this has been the system that has been in place for centuries.

         When we look at the Third World nations, and the exploitation of their working masses from our "civilized" nations, we find that there is not a single iota of decency. Profit is the only objective of these corporations, and if it is through brutal, cruel, and inhumane manners that such an objective is reached, then so be it -- this is the attitude of our Capitalist class. The managers of factories will beat their workers, forcing them to go without water, all through a 14 hour day, and then a Capitalist may explain to the working masses that "greed is good." So ignorant are the Capitalist philosophers that they believe that if the rights of everyone were put into the hands of the greediest, that we would have ourselves a utopia. If they were so open-minded as to open their eyes, they would find that the conditions of the worker or awful, and that the Capitalist system must be overthrown by any means possible. There are some who say that what happens in Third World nations today cannot happen in the United States, but it already has happened....

    Even so they might have managed it (for Mikolas is a skilled man) but for cruel accidents which have almost taken the heart out of them. He is a beef-boner, and that is a dangerous trade, especially when you are on piecework and trying to earn a bride. Your hands are slippery, and your knife is slippery, and you are toiling like mad, when somebody happens to speak to you, or you strike a bone. Then your hand slips up on the blade, and there is a fearful gash. And that would not be so bad, only for the deadly contagion. The cut may heal, but you never can tell. Twice now; within the last three years, Mikolas has been lying at home with blood poisoning - once for three months and once for nearly seven. The last time, too, he lost his job, and that meant six weeks more of standing at the doors of the packing houses, at six o'clock on bitter winter mornings, with a foot of snow on the ground and more in the air. There are learned people who can tell you out of the statistics that beef-boners make forty cents an hour, but, perhaps, these people have never looked into a beef-boner's hands. [The Jungle, by Upton Bealle Sinclair, chapter 1.]

    [...]

    Promptly at seven the next morning Jurgis reported for work. He came to the door that had been pointed out to him, and there he waited for nearly two hours. The boss had meant for him to enter, but had not said this, and so it was only when on his way out to hire another man that he came upon Jurgis. He gave him a good cursing, but as Jurgis did not understand a word of it he did not object. He followed the boss, who showed him where to put his street clothes, and waited while he donned the working clothes he had bought in a secondhand shop and brought with him in a bundle; then he led him to the "killing beds." The work which Jurgis was to do here was very simple, and it took him but a few minutes to learn it. He was provided with a stiff besom, such as is used by street sweepers, and it was his place to follow down the line the man who drew out the smoking entrails from the carcass of the steer; this mass was to be swept into a trap, which was then closed, so that no one might slip into it. As Jurgis came in, the first cattle of the morning were just making their appearance; and so, with scarcely time to look about him, and none to speak to any one, he fell to work. It was a sweltering day in July, and the place ran with steaming hot blood - one waded in it on the floor. The stench was almost overpowering, but to Jurgis it was nothing. His whole soul was dancing with joy - he was at work at last! He was at work and earning money! All day long he was figuring to himself. He was paid the fabulous sum of seventeen and a half cents an hour; and as it proved a rush day and he worked until nearly seven o'clock in the evening, he went home to the family with the tidings that he had earned more than a dollar and a half in a single day! [The Jungle, by Upton Bealle Sinclair, chapter 4.]

    [...]

    Jurgis had made some friends by this time, and he sought one of them and asked what this meant. The friend, who was named Tamoszius Kuszleika, was a sharp little man who folded hides on the killing beds, and he listened to what Jurgis had to say without seeming at all surprised. They were common enough, he said, such cases of petty graft. It was simply some boss who proposed to add a little to his income. After Jurgis had been there awhile he would know that the plants were simply honeycombed with rottenness of that sort - the bosses grafted off the men, and they grafted off each other; and some day the superintendent would find out about the boss, and then he would graft off the boss. Warming to the subject, Tamoszius went on to explain the situation. Here was Durham's, for instance, owned by a man who was trying to make as much money out of it as he could, and did not care in the least how he did it; and underneath him, ranged in ranks and grades like an army, were managers and superintendents and foremen, each one driving the man next below him and trying to squeeze out of him as much work as possible. And all the men of the same rank were pitted against each other; the accounts of each were kept separately, and every man lived in terror of losing his job, if another made a better record than he. So from top to bottom the place was simply a seething caldron of jealousies and hatreds; there was no loyalty or decency anywhere about it, there was no place in it where a man counted for anything against a dollar. And worse than there being no decency, there was not even any honesty. The reason for that? Who could say? It must have been old Durham in the beginning; it was a heritage which the self-made merchant had left to his son, along with his millions. [The Jungle, by Upton Bealle Sinclair, chapter 5.]

    [...]

    But there was no work for him. He sought out all the members of his union - Jurgis had stuck to the union through all this - and begged them to speak a word for him. He went to every one he knew, asking for a chance, there or anywhere. He wandered all day through the buildings; and in a week or two, when he had been all over the yards, and into every room to which he had access, and learned that there was not a job anywhere, he persuaded himself that there might have been a change in the places he had first visited, and began the round all over; till finally the watchmen and the "spotters" of the companies came to know him by sight and to order him out with threats. Then there was nothing more for him to do but go with the crowd in the morning, and keep in the front row and look eager, and when he failed, go back home, and play with little Kotrina and the baby.

    The peculiar bitterness of all this was that Jurgis saw so plainly the meaning of it. In the beginning he had been fresh and strong, and he had gotten a job the first day; but now he was second-hand, a damaged article, so to speak, and they did not want him. They had got the best of him - they had worn him out, with their speeding-up and their carelessness, and now they had thrown him away! And Jurgis would make the acquaintance of others of these unemployed men and find that they had all had the same experience. There were some, of course, who had wandered in from other places, who had been ground up in other mills; there were others who were out from their own fault - some, for instance, who had not been able to stand the awful grind without drink. The vast majority, however, were simply the worn-out parts of the great merciless packing machine; they had toiled there, and kept up with the pace, some of them for ten or twenty years, until finally the time had come when they could not keep up with it any more. Some had been frankly told that they were too old, that a sprier man was needed; others had given occasion, by some act of carelessness or incompetence; with most, however, the occasion had been the same as with Jurgis. They had been overworked and underfed so long, and finally some disease had laid them on their backs; or they had cut themselves, and had blood poisoning, or met with some other accident. When a man came back after that, he would get his place back only by the courtesy of the boss. To this there was no exception, save when the accident was one for which the firm was liable; in that case they would send a slippery lawyer to see him, first to try to get him to sign away his claims, but if he was too smart for that, to promise him that he and his should always be provided with work. This promise they would keep, strictly and to the letter - for two years. Two years was the "statute of limitations," and after that the victim could not sue. [The Jungle, by Upton Bealle Sinclair, chapter 12]

         Still, the conditions of today's world are not much more desirable. In 1974, the Capitalist class (per household) was making over $125,000 annually (in 1966 dollars); in 1987, the Capitalist class (per household) was making over $160,000 annually (in 1966 dollars); and in 1995, the Capitalist class (per household) was making over $200,000 annually (1966 dollars). However, from 1966 to 1995, the middle class have been making little over $25,000 annually (1966 dollars), and from 1966 to 1995, the poor class have been making little over $8,000 annually (1966 dollars) and that figure has remained virtually unchanged for that time period. From 1966 to 1995, the Capitalist class had an increase in over $75,000 (1966 dollars) yet the other classes have not been getting an increase of income at all. [Source: U.S. Census Bureau, historical income and poverty data.] Roughly 20% of the children in the United States are living in below poverty conditions. [Source: Urban Institute.] What we find in the United States, in 1980, is that top 1% of the United States of America owns more than 25% of all the wealth in the nation, while the poorest 20% of the nation do not even own 1% of the wealth. [Source: U.S. Treasury, Internal Revenue Service. Quoted from Contemporary Macroeconomics, by Milton H. Spencer, Worth Publishers, Inc., Fourth Edition, page 45.] Some people refer to the system of Capitalism as a celebration of human creativity and others refer to it as a proclamation of liberty in the face of tyranny. This rhetoric does nothing for the millions of starving workers who do not have enough money to feed their children. Anyone who lies for Capitalism by defending it is either supported by Capitalism or simply ignorant of the facts. I will call Capitalism what it surely is: legal plunder, and a desecration of human dignity in all its forms.

         The mining industry made 174.5 billion in 1997 and paid its workers only 20.9 billion -- each worker was paid 12% of the wealth they produced. The metal mining industry made 11.5 billion and paid its workers only 2.1 billion -- each worker was paid 18% of the wealth they produced. The coal mining industry made 24.0 billion and paid its workers 4.1 billion -- each worker was paid only 17% of the wealth they produced. The Oil & Gas Extraction industry made 122.1 billion and paid its workers 11.1 billion -- each worker was paid 9% of the wealth they produced. The nonmetallic minerals, except fuels, industry made 16.8 billion and paid its workers 3.5 billion -- each worker was paid only 20% of the wealth they produced. [See Appendix A for more information.]

         The construction industry made 834.8 billion and paid its workers 171.0 billion -- each worker was paid 20% of the wealth they produced. The general building contractors made 365.6 billion and paid its workers 39.9 billion -- each worker was paid 10% of the wealth they produced. The heavy construction made 127.0 billion and paid its workers 29.2 billion -- each worker was paid 22% of the wealth they produced. The special trade contractors made 342.4 billion and paid its workers 101.9 billion -- each worker was paid 29% of the wealth they produced. [See Appendix A for more information.]

         The manufacturing industry made 3,958.1 billion and paid its workers 595.7 billion -- each worker was paid 15% of the wealth they produced. The food and kindred products made 480.8 billion and paid its workers 42.9 billion -- each worker was paid 8% of the wealth they produced. The numbers from the Tobacco industry are withheld.. The textile mill products made 82.4 billion and paid its workers 13.7 billion -- each worker was paid 16% of the wealth they produced. The apparel & other textile industries made 81.2 billion and paid its workers 15.4 billion -- each worker was paid 18% of the wealth they produced. The lumber & wood products made 111.9 billion and paid its workers 18.7 billion -- each worker was paid 16% of the wealth they produced. The furniture & fixtures industry made 61.5 billion and paid its workers 13.3 billion -- each worker was paid 21% of the wealth they produced. The numbers of the paper and allied products industry are withheld. The printing & publishing industry made 210.9 billion and paid its workers 50.1 billion -- each worker was paid 23% of the wealth they produced. The chemicals & allied products industry made 400.1 billion and paid its workers 37.2 billion -- each worker was paid 9% of the wealth they produced. The petroleum & coal products industry made 175.8 billion and paid its workers 5.5 billion -- each worker was paid 3% of the wealth they produce. The rubber & miscellaneous plastics industry made 160.7 billion and paid its workers 30.3 billion -- each worker was paid 18% of the wealth they produced. The numbers of the leather and leather products industry are withheld. The stone, clay, & glass products industry made 87.2 billion and paid its workers 16.3 billion -- each worker was paid 18% of the wealth they produced. The primary metal industries made 188.7 billion and paid its workers 26.8 billion -- each worker was paid 14% of the wealth they produced. The fabricated metal industries made 231.7 billion and paid its workers 50.9 billion -- each worker was paid 21% of the wealth they produced. The industrial machinery & equipment industry made 407.4 billion and paid its workers 74.6 billion -- each worker was paid 18% of the wealth they produced. The electronic & other electric equipment industry made 348.6 billion and paid its workers 58.3 billion -- each worker was paid 16% of the wealth they produced. The transportation equipment industry made 515.9 billion and paid its workers 68.3 billion -- each worker was paid 13% of the wealth they produced. The numbers from the instruments and related products industry are withheld. The miscellaneous manufacturing products industry made 51.0 billion and paid its workers 10.6 billion -- each worker was paid 20% of the wealth they produced. [See Appendix A for more information.]

         The transportation and public utilities industry made 1,143.9 billion and paid its workers 199.7 billion -- each worker was paid 17% of the wealth they produced. The numbers of the local and interurban passenger transit are withheld. The trucking and warehousing industry made 197.3 billion and paid its workers 55.7 billion -- each worker was paid 28% of the wealth they produced. The water transportation industry made 35.2 billion and paid its workers 6.3 billion -- each worker was paid 17% of the wealth they produced. The transportation by air industry made 47.4 billion and paid its worker 10.4 billion -- each worker was paid 21% of the wealth they produced. The pipelines, except natural gas, industry made 7.2 billion and paid its workers 0.8 billion -- each worker was paid 11% of the wealth they produced. The numbers of the transportation services industry are withheld. The communications industry made 349.2 billion and paid its workers 64.0 billion -- each worker was paid 18% of the wealth they produced. The electric, gas, & sanitary services industry made 447.9 billion and paid its workers 41.9 billion -- each worker was paid 9% of the wealth they produced. [See Appendix A for more information.]

         The wholesale trade industry made 4,235.4 billion and paid its workers 234.5 billion -- each worker was paid 5% of the wealth they produced. The durable goods industry made 2,299.5 billion and paid its workers 147.7 billion -- each worker was paid 6% of the wealth they produced. The non-durable goods industry made 1,935.9 billion and paid its workers 86.8 billion -- each worker was paid 4% of the wealth they produced. [See Appendix A for more information.]

         The retail trade industry made 2,545.9 billion and paid its workers 290.5 billion -- each worker was paid 11% of the wealth they produced. The building materials and garden supplies industry made 146.2 billion and paid its workers 16.7 billion -- each worker was paid 11% of the wealth they produced. The numbers of the general merchandise industry are withheld. The food stores industry made 416.0 billion and paid its workers 42.8 billion -- each worker was paid 10% of the wealth they produced. The automotive dealers & service station industry made 788.2 billion and paid its workers 55.5 billion -- each worker was paid 7% of the wealth they produced. The apparel & accessory store industry made 116.6 billion and paid its workers 13.6 billion -- each worker was paid 11% of the wealth they produced. The home furniture, furnishings, & equipment industry made 136.1 billion and paid its workers 16.3 billion -- each worker was paid 11% of the wealth they produced. The numbers of the eating & drinking places industry are withheld. The miscellaneous retail industry made 365.9 billion and paid its workers 45.4 billion -- each worker was paid 12% of the wealth they produced. [See Appendix A for more information.]

         The finance, insurance, and real estate industry made 2,474.9 billion and paid its workers 308.2 billion -- each worker was paid 12% of the wealth they produced. The numbers of the financial institutions industry are withheld. The numbers of the non-depository institutions industry are withheld. The numbers of the security & commodity brokers industry are withheld. The insurance carriers industry made 997.4 billion and paid its workers 66.8 billion -- each worker was paid 6% of the wealth they produced. The insurance agents, brokers, & services industry made 75.3 billion and paid its workers 25.5 billion -- each worker was paid 33% of the wealth they produced. The real estate industry made 180.1 billion and paid its workers 33.5 billion -- each worker was paid 18% of the wealth they produced. The holding & other investment offices industry made 138.7 billion and paid its workers 14.4 billion -- each worker was paid 10% of the wealth they produced. [See Appendix A for more information.]

         The services (taxable firms only) industry made 1,843.8 billion and paid its workers 688.9 billion -- each worker was paid 37% of the wealth they produced. The hotels & other lodging places industry made 97.9 billion and paid its workers 26.6 billion -- each worker was paid 27% of the wealth they produced. The personal services industry made 53.1 billion and paid its worker 17.8 billion -- each worker was paid 33% of the wealth they produced. The business services industry made 528.5 billion and paid its workers 211.5 billion -- each worker was paid 40% of the wealth they produced. The auto repair, services, and parking industry made 99.6 billion and paid its workers 22.6 billion -- each worker was paid 22% of the wealth they produced. The miscellaneous repair services industry made 37.3 billion and paid its workers 11.4 billion -- each worker was paid 30% of the wealth they produced. The motion pictures industry made 67.9 billion and paid its workers 13.8 billion -- each worker was paid 20% of the wealth they produced. The amusement & recreation services industry made 81.8 billion and paid its workers 24.7 billion -- each worker was paid 30% of the wealth they produced. The health services industry made 398.5 billion and paid its workers 173.5 billion -- each worker was paid 43% of the wealth they produced. The legal services industry made 122.6 billion and paid its workers 47.4 billion -- each worker was paid 38% of the wealth they produced. The educational services industry made 12.4 billion and paid its workers 4.2 billion -- each worker was paid 33% of the wealth they produced. The social services industry made 18.9 billion paid its workers 8.0 billion -- each worker was paid 42% of the wealth they produced. The museums, botanical, zoological gardens industry made 0.4 billion and paid its workers 0.1 billion -- each worker was paid 25% of the wealth they produced. The membership organizations made 2.0 billion and paid its workers 0.7 billion -- each worker was paid 35% of the wealth produced. The engineering & management services industry made 302.0 billion and paid its workers 121.7 billion -- each worker was paid 40%. The numbers of the services not elsewhere classified industry are unavailable. [See Appendix A for more information.]

         Although it is true that workers are only being paid a small fraction of the wealth they produce, it is important to understand that these numbers alone cannot be taken as accurate. For example, the mining industry statistic: "The mining industry made 174.5 billion in 1997 and paid its workers only 20.9 billion -- each worker was paid 12% of the wealth they produced." This information is based on the assumption that each worker (including entry level) was paid, on average, $40,820.31 per year, or $19.62 per hour for full time workers. This is, indeed, an incredibly high number and often times, even managers will make little over $10 an hour. The construction industry statistic: "The construction industry made 834.8 billion and paid its workers 171.0 billion -- each worker was paid 20% of the wealth they produced." This is based on the assumption that each worker (including entry level) was paid, on average, $30,716.72 per year, or $14.76 per hour for full time workers. The manufacturing industry statistic: "The manufacturing industry made 3,958.1 billion and paid its workers 595.7 billion -- each worker was paid 15% of the wealth they produced." This is based on the assumption that each worker (including entry level) was paid, on average, $33,929.48 per year, or $16.31 per hour for full time workers. The transportation and public utilities industry statistic: "The transportation and public utilities industry made 1,143.9 billion and paid its workers 199.7 billion -- each worker was paid 17% of the wealth they produced." This is based on the assumption that each worker (including entry level) was paid, on average, $35,102.21 per year, or $16.87 per hour for full time workers. The wholesale trade industry statistic: "The wholesale trade industry made 4,235.4 billion and paid its workers 234.5 billion -- each worker was paid 5% of the wealth they produced." This is based on the assumption that each worker (including entry level) was paid, on average, $36,025.37 per year, or $17.31 per hour for full time workers. The retail trade industry statistic: "The retail trade industry made 2,545.9 billion and paid its workers 290.5 billion -- each worker was paid 11% of the wealth they produced." This is based on the assumption that each worker (including entry level) was paid, on average, $13,724.90 per year, or $6.59 per hour for full time workers. The finance, insurance, and real estate industry statistic: "The finance, insurance, and real estate industry made 2,474.9 billion and paid its workers 308.2 billion -- each worker was paid 12% of the wealth they produced." This is based on the assumption that each worker (including entry level) was paid, on average, $42,136.63 per year, or $20.25 for full time workers. The services (taxable firms only) industry statistic: "The services (taxable firms only) industry made 1,843.8 billion and paid its workers 688.9 billion -- each worker was paid 37% of the wealth they produced." This is based on the assumption that each worker (including entry level) was paid, on average, $27,252.51 per year, or $13.10 per hour for full time workers.

         What we find is that workers, on average, are sometimes being paid four to ten times the minimum wage. However, these statistics are misleading. They would lead the reader to believe that each worker was being paid around that amount. Instead, in an investigation, we find an elitist class of workers who are, in themselves, also Capitalists and owners of capital. However, since they are employed by corporations and companies, they appear on the annual payroll, as does their salary. Robert M. Delvin, for example, is Chairman, President, and CEO of American General Corporation. He is an employee, but in one year, he made $45,024,122. If he worked for the mining industry, where every worker is paid on average $40,820.31 per year, or $19.62 per hour, then that would mean that for him, there are 1,494 full time workers that are being paid $5.15 per hour. If Delvin worked for the construction industry, where every worker is paid on average $30,716.72 per year, or $14.76 per hour for full time workers, then that would mean that for him, there are 2,249 full time workers that are being paid $5.15 per hour. If Delvin worked for the manufacturing industry, then that would mean that for him, there are 1,940 full time workers that are being paid $5.15 per hour. If Delvin worked for the transportation and public utilities industry, then that would mean that for him, there are 1,840 full time workers that are being paid $5.15 per hour. If Delvin worked for the wholesale trade industry, then that would mean that for him, there are 1,775 full time workers that are being paid $5.15 per hour. If Delvin worked for the retail trade industry, then that would mean that for him, there are 14,900 full time workers that are being paid $5.15 per hour. If Delvin worked for the finance, insurance, and real estate industry, then that would mean that for him, there are 1,430 full time workers that are being paid $5.15 per hour. If Delvin worked for the services (taxable firms only) industry, then that would mean that for him, there are 2,720 full time workers that are being paid $5.15 per hour. This is, of course, all based on the average wage of workers and figuring in the wage of Delvin (or other high-paid executives).

         Delvin is not the only highly paid executive in the United States. Michael D. Capellas, President And CEO of Compaq Computer Corp., made $36,873,239 in one year. Eugene M. Isenberg, Chairman and CEO of Nabors Industries, made $28,562,719 in one year. Archie W. Dunham, Chairman, President, and CEO of Conoco, made $24,960,366 in one year. Chuck Watson, Chairman and CEO of Dynegy, made $23,228,239 in one year. Kenneth Lay, Chairman and CEO of Enron Corp., made $21,189,762 in one year. A. Maurice Myers, Chairman and CEO of Waste Management, made $21,048,991 in one year. William Wise, President and CEO of El Paso Energy Corp., made $20,207,341 in one year. Jon P. Newton, Vice Chairman of American General Corp., made $18,020,000 in one year. Joseph Sutton, Vice Chairman of Enron Corp., made $17,864,387 in one year. Max Watson Jr., Chairman and CEO of BMC Software, made $16,868,901 in one year. Jeffrey Skilling, President and COO of Enron Corp., made $16,748,043 in one year. Charles E. Hurwitz, Chairman of the Board and CEO of Maxxam, made $15,645,237 in one year. Anthony G. Petrello, President and COO of Nabors Industries, made $14,760,659 in one year. Stephen Bergstrom, President and COO of Dynegy, made $14,635,884 in one year. R. L. Waltrip, Chairman and CEO of Service Corporation International, made $14,537,529 in one year. Michael J. Larson, SVP and Group GM - Consumer Group of Compaq Computer Corp., made $14,195,790 in one year. Robert J. Allison, Jr., Chairman and CEO of Anadarko Petroleum Corp., made $13,469,615 in one year. John Kelly, President and COO of Crown Castle International Corp., made $12,401,690 in one year. Ted Miller Jr., CEO and Chairman of Crown Castle International Corp., made $11,729,737 in one year. In fact, it is not unusual at all for the average salary of CEOs to be anywhere between $800,000 to $1,000,000 per year, accompanied with a range of options, perks, stock awards, incentives, salary bonus, cash bonus, extra payments, among other things, it is quite easy to see how some Chief Executive Officers are capable of making millions and millions each year. [Source: The Houston Chronicle.]

         There is, of course, to be taken into consideration the other forms of capital. It is true that only the workers work the machinery and they are paid less than the overall revenue, because electricity, heat, water, machinery, among other forms of capital, must also be paid for. However, how much, exactly, do wages make up when it comes to capital expenditure? 45% of the expenditure of merchant wholesale industry was on payroll. 46% of the expenditure of retail trade industry was on payroll. 40% of the expenditure of the lodging industry was on payroll. 51% of the expenditure of business services industry was on payroll. 51% of the expenditure of health services was on payroll. And 52% of the expenditure of legal services was on payroll. Other expenses are as follows.... Merchant Wholesale Industry: Other - 34%, Advertising - 4%, Rent - 5%, Depreciation - 5%, Fringe benefits - 8%. Retail Trade Industry: Other - 26%, Advertising - 6%, Rent - 9%, Depreciation - 5%, Fringe benefits - 8%. Lodging Industry: Other - 33%, Utilities - 5%, Rent - 4%, Depreciation - 9%, Fringe benefits - 9%. Business Services Industry: Other - 27%, Rent - 4%, Depreciation - 5%, Contract labor - 5%, Fringe benefits - 8% Health Services Industry: Other - 29%, Rent - 3%, Depreciation - 4%, Contract labor - 3%, Fringe benefits - 10%. Legal Services Industry: Other - 27%, Office Supplies - 2%, Telephone - 2%, Rent - 10%, Fringe benefits - 8%. Payroll expenses vary from 40% to 52%. Advertising expenses vary from 4% to 6%. Rent expenses vary from 3% to 10%. Depreciation expenses vary from 4% to 9%. Fringe benefits expenses vary from 8% to 10%. Utility expenses vary from 0% to 5%. Contract labor expenses vary from 3% to 5%. Office supply expenses vary from 0% to 2%. Telephone expenses vary from 0% to 2%. And other expenses vary from 26% to 34%. So, it is clearly seen, that payroll expenses make up, basically, half of the total expenses for industries -- some a little less and some a little more.

    Section III: Conclusion

         We find that workers are underpaid unbelievably. It is through their own work that society should be granted the fruits of an industrial society, and yet we can see fully that companies and their owners are in fact the individuals who gain the profit of such toils. We see that only a fraction of actual wealth goes into the pocket of the workers who make that wealth! Class War is the conclusion of such economical struggles. Whereas the Capitalist class uses its profit to find new places to invest in, so that they may grow richer and richer, the poor class continues in its journey for the conquest of bread. The complete extremes of wealth, the starving poor and the gluttonous rich, is what is called Capitalism. It produces the vices of brutality and ignorance, and then endeavors so much to refer to itself as freedom. With such slogans as, "Greed is good," or "Self interest helps everyone," we are told everyday that it is through Capitalism that we are supplied with liberty and wealth. There is little liberty laying across the crusts of bread, though; there is only the stench of lies to support the abominable and treacherous thing called the Capitalist system. There can be no justification for the exploitation that occurs.

         By throwing the worker into the abyss of ill usage and providing him with only the crumbs of his labors, the Capitalist asserts that he is an important part of society. With the oncoming of fairness and justice, and thus the oncoming of Socialism, the vestiges of society, these Capitalists, will be evicted. For they are little more than criminals, as they can claim to have produced nothing, but have exploited every worker. The lash of tyranny and the whip of oppression are the tools used by Capitalists. By beating down the workers, and continually asserting that they deserve nothing more than bread crumbs, the Capitalist has maintained their power and has maintained control of the factories, the farms, the stores, the means of production -- the tools that the Proletariat use everyday to create the wealth that feeds the upper class. And it is this, exploitation, tyranny, ruthlessness, oppression, and brutality that are inherent parts of the Capitalist system, and they must be destroyed, as anything which is unjust must be destroyed.

    Resources

    Delvin Calculations...

    (($5.15 Yearly Wage * Amount of Non-CEO Workers) + Delvin's Wage / All Workers = Average Wage of Worker

    The mining industry...
    ((10,712 * 1,494) + 45,024,122) / 1,495 = average wage

    The construction industry...
    ((10,712 * 2,249) + 45,024,122) / 2,250 = average wage

    The manufacturing industry...
    ((10,712 * 1,940) + 45,024,122) / 1,941 = average wage

    The transportation and public utilities industry...
    ((10,712 * 1,840) + 45,024,122) / 1,841= average wage

    The wholesale trade industry...
    ((10,712 * 1,775) + 45,024,122) / 1,776 = average wage

    The retail trade industry...
    ((10,712 * 14,900) + 45,024,122) / 14,901 = average wage

    The finance, insurance, and real estate industry...
    ((10,712 * 1,430 ) + 45,024,122) / 1,431 = average wage

    The services (taxable firms only) industry...
    ((10,712 * 2,720) + 45,024,122) / 2,721 = average wage

    Appendix A: 1997 Business Statistics

    Industry Establishments Revenue Annual Payroll Employees
    MINING
    Total 25,251 174.5 (bil.) 20.9 (bil.) 512,000
    Metal Mining 696 11.5 (bil.) 2.1 (bil.) 48,500
    Coal Mining 1,820 24.0 (bil.) 4.1 (bil.) 93,000
    Oil & Gas Extraction 17,219 122.1 (bil.) 11.1 (bil.) 272,800
    Nonmetallic minerals, except fuels 5,516 16.8 (bil.) 3.5 (bil.) 97,800
    CONSTRUCTION
    Total 639,482 834.8 (bil.) 171.0 (bil.) 5,567,000
    General building contractors 184,517 365.6 (bil.) 39.9 (bil.) 1,269,300
    Heavy construction, ex. building 39,542 127.0 (bil.) 29.2 (bil.) 851,600
    Special trade contractors 415,423 342.4 (bil.) 101.9 (bil.) 3,446,200
    MANUFACTURING
    Total 377,776 3,958.1 (bil.) 595.7 (bil.) 17,557,000
    Food & kindred products 20,878 480.8 (bil.) 42.9 (bil.) 1,561,400
    Tobacco products 105 Withheld Withheld 25k - 49.999k
    Textile mill products 6,155 82.4 (bil.) 13.7 (bil.) 561,900
    Apparel & other textile products 23,411 81.2 (bil.) 15.4 (bil.) 829,300
    Lumber & wood products 36,735 111.9 (bil.) 18.7 (bil.) 757,300
    Furniture & fixtures 12,095 61.5 (bil.) 13.3 (bil.) 523,900
    Paper & allied products 6,496 Withheld Withheld +100,000
    Printing & publishing 62,355 210.9 (bil.) 50.1 (bil.) 1,534,300
    Chemicals & allied products 12,371 400.1 (bil.) 37.2 (bil. 820,200
    Petroleum & coal products 2,147 175.8 (bil.) 5.5 (bil.) 106,100
    Rubber & miscellaneous plastics products 16,892 160.7 (bil.) 30.3 (bil.) 1,037,000
    Leather & leather products 1,839 Withheld Withheld 50k - 99k
    Stone, clay, & glass products 16,393 87.2 (bil.) 16.3 (bil.) 505,400
    Primary metal industries 6,275 188.7 (bil.) 26.8 (bil.) 692,200
    Fabricated metal industries 37,985 231.7 (bil.) 50.9 (bil.) 1,549,500
    Industrial machinery & equipment 56,383 407.4 (bil.) 74.6 (bil.) 1,978,200
    Electronic & other electric equipment 17,104 348.6 (bil.) 58.3 (bil.) 1,582,300
    Trasportation equipment 12,387 515.9 (bil.) 68.3 (bil.) 1,561,700
    Instruments & related products 11,727 Withheld Withheld +100,000
    Miscellaneous manufacturing products 18,043 51.0 (bil.) 10.6 (bil.) 394,000
    TRANSPORTATION AND PUBLIC UTILITIES
    Total 293,575 1,143.9 (bil.) 199.7 (bil.) 5,689,100
    Local and interurban passenger transit 19,621 Withheld Withheld +100,000
    Trucking and warehousing 133,373 197.4 (bil.) 55.7 (bil.) 1,960,100
    Water transportation 9,214 35.2 (bil.) 6.3 (bil.) 178,600
    Transportation by air 11,455 47.4 (bil.) 10.4 (bil.) 362,400
    Pipelines, except natural gas 861 7.2 (bil.) 0.8 (bil.) 13,500
    Transportation services 52,409 Withheld Withheld +100,000
    Communications 44,319 349.2 (bil.) 64.0 (bil.) 1,450,000
    Electric, gas, & sanitary services 22,323 447.9 (bil.) 41.9 (bil.) 835,900
    WHOLESALE TRADE
    Total 521,127 4,235.4 (bil.) 234.5 (bil.) 6,509,300
    Durable goods 337,277 2,299.5 (bil.) 147.7 (bil.) 3,887,400
    Non-durable goods 183,850 1,935.9 (bil.) 86.8 (bil.) 2,622,000
    RETAIL TRADE
    Total 1,561,195 2,545.9 (bil.) 290.5 (bil.) 21,165,900
    Building materials & garden supplies 67,469 146.2 (bil.) 16.7 (bil.) 830,400
    General merchandise stores 34,899 Withheld Withheld +100,000
    Food stores 171,057 416.0 (bil.) 42.8 (bil.) 3,109,300
    Automotive dealers & service stations 202,237 788.2 (bil.) 55.5 (bil.) 2,283,800
    Apparel & accessory stores 126,863 116.6 (bil.) 13.6 (bil.) 1,116,100
    Home furniture, furnishings, & equipment 115,124 136.1 (bil.) 16.3 (bil.) 861,600
    Eating & drinking places 475,907 Withheld Withheld +100,000
    Miscellaneous retail 367,639 365.9 (bil.) 45.4 (bil.) 2,795,500
    FINANCE, INSURANCE, AND REAL ESTATE
    Total 661,388 2,474.9 (bil.) 308.2 (bil.) 7,314,300
    Depository institutions 109,851 Withheld Withheld +100,000
    Nondepository institutions 52,074 Withheld Withheld +100,000
    Security & commodity brokers 45,029 Withheld Withheld +100,000
    Insurance carriers 40,717 997.4 (bil.) 66.8 (bil.) 1,614,200
    Insurance agents, brokers, & services 131,582 75.3 (bil.) 25.5 (bil.) 713,100
    Real estate 252,292 180.1 (bil.) 33.5 (bil.) 1,340,100
    Holding & other investment offices 29,843 138.7 (bil.) 14.4 (bil.) 257,800
    SERVICES (taxable firms only)
    Total 2,077,666 1,843.8 (bil.) 688.9 (bil.) 25,278,400
    Hotels & other lodging places 55,992 97.9 (bil.) 26.6 (bil.) 1,685,700
    Personal services 204,455 53.1 (bil.) 17.8 (bil.) 1,302,600
    Business services 397,264 528.5 (bil.) 211.5 (bil.) 8,652,000
    Auto repair, services, and parking 191,907 99.6 (bil.) 22.6 (bil.) 1,094,200
    Miscellaneous repair services 66,607 37.3 (bil.) 11.4 (bil.) 418,700
    Motion pictures 46,017 67.9 (bil.) 13.8 (bil.) 571,100
    Amusement & recreation services 81,225 81.8 (bil.) 24.7 (bil.) 1,232,600
    Health services 466,421 398.5 (bil.) 173.5 (bil.) 5,520,000
    Legal services 165,757 122.6 (bil.) 47.4 (bil.) 956,100
    Educational services 21,283 12.4 (bil.) 4.2 (bil.) 188,600
    Socal services 69,713 18.9 (bil.) 8.0 (bil.) 662,200
    Museums, botanical, zoological gardens 659 0.4 (bil.) 0.1 (bil.) 5,900
    Membership organizations 868 2.0 (bil.) 0.7 (bil.) 25,200
    Engineering & management services 292,162 302.0 (bil.) 121.7 (bil.) 2,931,600
    Services, not elsewhere classified (N/A) (N/A) (N/A) (N/A)
    AUXILIARIES
    Total 48,193 41.3 (bil.) 178.2 (bil.) 3,284,100

    Source: U.S. Census Bureau, 1997 Economic Census, Comparative Statistics, Core Business Stastitics Series, EC97X-C52, issued June 2000.

    Appendix B: Business Expenditure

    Merchant Wholesale
         Other - 34%
         Advertising - 4%
         Rent - 5%
         Depreciation - 5%
         Fringe benefits - 8%
         Payroll 45%

    Retail Trade
         Other - 26%
         Advertising - 6%
         Rent - 9%
         Depreciation - 5%
         Fringe benefits - 8%
         Payroll - 46%

    Lodging
         Other - 33%
         Utilities - 5%
         Rent - 4%
         Depreciation - 9%
         Fringe benefits - 9%
         Payroll - 40%

    Business Services
         Other - 27%
         Rent - 4%
         Depreciation - 5%
         Contract labor - 5%
         Fringe benefits - 8%
         Payroll - 51%

    Health Services

         Other - 29%
         Rent - 3%
         Depreciation - 4%
         Contract labor - 3%
         Fringe benefits - 10%
         Payroll - 51%

    Legal Services
         Other - 27%
         Office Supplies - 2%
         Telephone - 2%
         Rent - 10%
         Fringe benefits - 8%
         Payroll - 52%

    Source: Business Expenses, 1997 Economic Census, Company Statistic Series, 1997, Issued December 2000, EC97CS-8, US CENSUS BUREAU, U.S. Department of Commerce, Economics and Statistics Administration, U.S. CENSUS BUREAU.

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