Economic and political concepts of Ferdinand Lassalle

Ferdinand Lassalle – originally called Ferdinand Lassal – was a nineteenth century thinker born in Wrocław, Poland but politically involved in the German politic environment as a representative of social political activism. He was interested in topics of political system, social problems, civil and constitutional law, philosophy and economy, formulating his views on the base of Hegel’s and Fichte’s idealistic works. Lassalle’s biography provides the reader with plenty of information about the ideological inclinations of the thinker. One of the basic sources on that matter is Lassalle's diary revealing facts about his personality, from which he emerges as a precocious and undisciplined young man and a leadership dreamer. Having mentioned that, the economic and political concepts developed by Ferdinand Lassalle will be discussed.

Ferdinand Lassalle begun his political activity in time of 1848 European Revolutions, commonly known as the Spring of Nations. He made numerous attempts to excite the radicalism in the upper class of bourgeoisie – however unsuccessful and discouraging those attempts were, he joined the workers’ movement in the early sixties contributing, with twelve other delegates, to foundation of ADAV on 23 May 1863 in Leipzig (Allgemeiner Deutscher Arbeiterverein – The General German Workers' Association). This actions clearly indicate that the scope of Lassalle’s interests focused mainly on politics and economy from a rather leftist standpoint. This argument might also be supported by the fact, that his views were referred to (not uncritically, though) by other leading representatives of German socialism: Karl Marx, Friedrich Engels, Eduard Bernstein.

Lassalle’s presented a variety of strong political convictions. Principally, his core ideas concerned issues of a working class, fighting capitalism and it thorough transformation. A relevant factor that could evoke it – according to Lassalle – were voting rights which should be available commonly, finally causing financial stability of the working class compared to other, more wealthy, social groups.

In contrast to Marxian theory, Lassalle's theories denied that the bourgeoisie must be totally destroyed and emphasized the positive role of the state – and especially nationalism. He was loyal and devoted to a nation, possessed a sense of national consciousness exalting German nation above all others and placed primary emphasis on promotion of its culture and interests. The outward indication was that Lassalle founded and was a main theoretician of The General German Workers' Association and was immensely involved in German politics and economic policy. Not only did he undertake actions to sustain self-determination of Germany but also to strengthen its position on the international area. He grasped the social history as a history of spirit of the nation which strives for freedom. From the concept “spirit of the nation” he formed political-legal and economic conclusions. Lassalle put together the German idealistic elements with socialist ideas, that is why his concepts were so original: he subsequently postulated need for German state unification under the aegis of Prussia, implementation of new constitution and universal suffrage, transformation of the capitalistic society into a socialist one (where creating the cooperatives by the state should help), elimination of iron law of wages. All of the factors mentioned above constituted Lassalle’s nationalism and will be elaborated in detail later on.

Furthermore, Lassalle opposed the very basics of the Marxist ideology – class struggle. He identified the origins and evolution of a state with understanding the freedom as a moral idea. He introduced a gradual progress as a mean of political system transformation – not a rapid uprising or revolution, which was a considerable difference that had a major impact on political thought of Lassalle. The working class was supposed to fight by all means but force, parliament way being the best option. He thus generally advocated state action rather than revolution; taking over, but not destruction. Additionally, according to him emergence of the working class – proletariat – could cause a liberation of a virtually whole society. As a consequence, the society would become supreme towards the state, which would then ensure the social interest and therefore it could be possible that the state could serve the whole society.

In terms of Lassalle’s economic concepts there are some widely considered as worth mentioning, as they constitute and are essential part of the general framework of his ultimate views. To begin, it was Lassalle who came up with the phrase "iron law of wages" (sources suggest also names “brazen law of wages” or “economic bronze law”). His concept was based on a thought that in the capitalistic system the position of labor is hopeless – simultaneously accepting the subsistence theory of wages. The “iron law of wages” itself stated that all attempts of improving the real income of workers were actually pointless and that therefore those wages perforce remained near the survival level. Additionally, wages naturally tend to fall to the minimum level necessary for subsistence. It seems that it is not, as the legislature intended, to change the financial condition of the poor, but to deteriorate the condition of both poor and rich. Shortly speaking, instead of making the poor rich, it is rather calculated to make the rich poor. Essentially, when the relation supply-demand indicates salary, salary should oscillate between the living minimum (a certain level covering the most basic needs of a worker and his family). According to this concept the wages cannot go beyond social minimum and this was due to a following economic chain reaction: when working class grows and workers propagate their quantity increases, which causes the growth of workers supply – which consecutively results in decrease of salaries. This way the salaries would never increase and exceed mentioned subsistence wages. Probably the only way out of this vicious circle would be if the law of supply and demand would not be an indication of workers’ salary.

Thus, capitalism in his opinion should be abolished and cooperative associ­ation should be put in its place in order to create a political-economic form of work realm’s organization. The preferable role of the state was to guard the funds of those associations and maintain suitable rules. Lassalle referred to the liberal state as a “night watchman” (or “state-night watch”) who would determine its function’s character. Furthermore, Lassalle stated that the proper way to emancipate the proletariat was to establish and develop the productive cooperatives with the government’s support. In those workshops workers would earn salary for their work, which would be adequate to the very worth of goods they produced. This concept indicates no more working class’ exploitation. He argued that the state should make the capital expenses in order to enable the workers to set up cooperatives. Moreover, he thought that the state could be forced to do so when universal suffrage would be achieved. However, as long as there were no equal and direct elections and workers could not influence the government nor create their own enterprises, it was the state’s responsibility to enable them establish cooperatives, for instance by providing the crediting institutions. Finally, Lassalle agreed with Marx on the matter that the historical duty of the working class is to build a society based on cooperative principles.

Lassalle considered "capital," to be the name for a group of political, economic, and juristic conditions which were by no means abso­lute nor permanent; they were the result of an historical development. An examination of the then existing economic order indicates that its most crucial features were division of labor, production for a world market, competition, as well as the ownership of the instruments of production by the capitalist class, for instance factories. This exploited proletariat – wage earners – by paying them according to the “iron law of wages” and keeping the exceeding gain, the surplus, to themselves only. Capital, picturesquely described as "the dead instrument of labor," has become the active and main factor, degrading the living hard-working laborer. Lassalle’s assumptions, although maybe not that original considering others thinkers on the political scene of Europe in XIX century, evolved even further: the individual can succeed in improving the social living conditions only by a tight cooperation with the state, not a struggle. Here again, on the economic plane Lassalle’s views deviate to a considerable extent from those of Karl Marx.

Yet in opposing individualism Lassalle denied that the individual can fully control his own destiny. There is an element of chance or coincidence that is prevailing over individual endeavor. For example, wars or crises are of social origin only, beyond the scope of individ­ual action which is incapable of resulting in big, significant changes. Thus, it cannot be relied upon individual initiative and self-interest.

Ferdinand Lassalle also distinguished between corporatist and human solidarity. During the first decades of the 18^th century corporatism often reflected middle class’ fears of the power of big business on the one hand and the Marxian socialism on the other. Generally, corporatism means organizing society into “corporations” which are in subordinate position to the state. According to this theory, workers and employers are organized into industrial and professional corporations serving functioning as organs of political representation and controlling the persons and activities within their jurisdiction. Perhaps a further complementary explanation might be useful: as the “corporate state” was put into effect in fascist Italy between the 19^th century World Wars, instead of reflecting it the adjusted interests of economic groups, it reflected the will of the country’s dictator, Benito Mussolini.

Lassalle also stated that the corporatist solidarity was developed in the sphere of labour, but was too restricted. Therefore, it should be universalized into a general human solidarity.

Lassalle died young at the age of 39, leaving modest but coherent legacy offering an explicit insight into socialistic political and economical approaches. As can be expected, he strongly influenced other thinkers e.g. Polish socialist Bolesław Limanowski derived from him certain ideas during the January Uprising of 1863 in Poland. Also, Lassalle’s views were reflected in a programme of The Social Democratic Party of Germany in Gotha where it was founded. All in all, Ferdinand Lassalle proved to be an outstanding thinker with the long lasting ideas that had their impact on the socialist ideology as a whole in terms of both economy and politics.