The total national product is divided into wages, rent, interest, and profits. All economic theory considers it definitely settled that this division proceeds, not according to the extra-economic power of the individual classes, but according to the importance which the market imputes to individual factors of production. Classical Political Economy and the modem theory of marginal value agree in this. Even Marxian doctrine, which has borrowed its theory of distribution from classical theory, agrees.

From the theory of the class-war, Marxians argue that the socialist order of society is the inevitable future of the human race. In any society based on private property, says Marxism, there must of necessity be an irreconcilable conflict between the interests of separate classes: exploiters oppose the exploited. This contrast of interests, it is assumed, determines the historical position of the classes; it prescribes the policy they must follow.

The opinion that history leads to Socialism is almost universal to-day. From Feudalism through Capitalism to Socialism, from the rule of the aristocracy through the rule of the bourgeoisie to proletarian democracy — thus, approximately, people conceive the inevitable evolution. The gospel that Socialism is our inescapable destiny is acclaimed by many with joy, accepted by others with regret. doubted by only the courageous few. This scheme of evolution was known before Marx, but Marx developed it and made it popular. Above all Marx managed to fit it into a philosophic system.

Race, nationality, citizenship, estate-rights: these things directly affect action. It does not matter whether a party ideology unites all those belonging to the same race or nation, the same state or estate. The fact that races, nations, states or estates exist determines human action even when there is no ideology to guide members of a group in a certain direction. A German’s thought and actions are influenced by the kind of mind he has acquired as a member of the German language community. Whether or not he is influenced by nationalist party ideology is here unimportant.

The simplest way to depict the evolution of society is to show the distinction between two evolutionary tendencies which are related to each other in the same way as intension and extension. Society develops subjectively and objectively; subjectively by enlarging its membership, objectively by enlarging the aims of its activities. Originally confined to the narrowest circles of people, to immediate neighbours, the division of labour gradually becomes more general until eventually it includes all mankind.

The individual’s fate is determined unequivocally by his Being. Everything that is has necessarily proceeded from his Becoming, and everything that will be results necessarily from that which is. The situation at any given moment is the consummation of history.1  He who understood it completely would be able to foresee the whole future.

The social theories which are based on natural law start from the dogma that human beings are equal. Since all men are equal, they are supposed to have a natural claim to be treated as members of society with full rights, and, because everybody has a natural right to live, it would be a violation of right to try to take his life. Thus are formulated the postulates of the all-inclusiveness of society, of equality within society, and of peace. Liberal theory, on the other hand, deduces these principles from utility. To Liberalism the concepts man and social man are the same.

The most important medium for social co-operation is language. Language bridges the chasm between individuals and only with its help can one man communicate to another something at least of what he is feeling.

Scientific knowledge of the innate qualities of man is still in its infancy. We cannot really say any more about the inherited characteristics of the individual than that some men are more gifted from birth than others. Where the difference between good and bad is to be sought we cannot say. We know that men differ in their physical and psychic qualities. We know that certain families, breeds, and groups of breeds reveal similar traits. We know that we are justified in differentiating between races and in speaking of the different racial qualities of individuals.