During the 18th century, the higher efficiency of the nascent factory system made the previously revolutionary cottage industry production system less efficient and therefore newly uncompetitive. As a result the cottage industry system lost its commercial viability and gradually began to fail economically.
The combination of the decline of cottage industries and the rise of the factory system of manufacturing, swept huge masses of people away from their family farms and villages and into the growing cities to look for employment.
However the “army of the unemployed” factory workers allowed the factory owners and managers to grossly underpay their workers. The poorer, less skilled, elements of England’s middle classes, which had thrived in the cottage industry economy, gradually declined back into their former subsistence existences.
Most of these farm labor workers who moved to the manufacturing cities of England found a Dickensian reality of generally low to medium skilled jobs being offered to an unskilled labor force which was offered low wages in exchange for working long hours in various manufacturing occupations. If the wages offered were too low to allow a married man to support a family and hence those men wouldn’t take the work, then the employers hired adolescent children and destitute single women to do the work. In general the working conditions in these establishments was physically demanding and dangerous. The long hours made an average working day into a somewhat brutal experience.
One influential voice in all this worker turmoil was that of the self-proclaimed labor philosopher Karl Marx and his financial and philosophical supporter, sustainer, and shadow Friedrich Engels (1840s-1870s).

On a pragmatic local level Marx and Engels advised that the exploited laboring class, which he call the proletarian class, should act together in unity to demand that the “greedy bourgeoisie capitalist” class provide laborers with a significantly better wage rate, and safer working conditions.
Marx never really allied with the labor union organizers of his day because he felt that the labor union movement would make things better by inches, and the situation really needed to be changed by miles. Also, Marx was not really a down and dirty, “boots on the ground” kind of a guy. He was more of a thinker and a talker than a doer.
On a more universal and philosophical level Marx argued that the workers, not the factory owners, were, the true producers of the goods of society, which from Marx’s perspective was either rhetorically or absolutely true.
Marx asserted that those exploited workers should and inevitably would rise up and revolt against all of western society and overthrow the capitalist system completely. They could then seize the means of production from the bourgeoisie class for the good of the masses of the working class by violence and force of arms. The proletarian workers would then operate the factories, and run them for the good of all of society, with all people working as they are able, and receiving equal shares of the benefits of production. The nominal benefits of Marx’s idealistic utopian communist system included:
- A living wage to paid to everyone in society.
- Free universal state provided housing for all.
- Free universal state provided healthcare for all.
- Free state provided provisions (food, clothing, energy for heating, etc.) for all.
- Free state provided education and job skills training for all.
To each accord to his needs and his abilities.
This communist ideal has been roundly attacked by western market-price-based commerce supporting economic writers and thinkers. In fact Marx’s utopian ideal of a perfect communist society in which everyone gladly shares all equally, is not very different from the voluntary Christian communalism described in the early chapters of the Apostle Luke’s Acts of the Apostles, or of that which William Bradford describes the initial Pilgrim colonists doing in his venerable On Plymouth Plantation.
However, the important and often overlooked difference between such volitional communalism and Marx’s communism is that Marx’s system is coercive and compulsory.
Marx prophesied that the working class would ultimately reach a point where it had, had all it could stand and that class would revolt against the entire capitalist system which so unjustly enslaved it. Of course, that never happened.
Lenin’s Bolshevik Revolution in the post czarist Russia ruled by the Duma (the nascent Russian parliament) was a revolution of a militant sub-set of Russia’s intelligentia, not its working classes. At the time of Lenin’s revolution, his Bolshevik system of Soviet Communism was forced on the vast people of Russia by a small minority of avid supporters.
It took Lenin’s development of a police state, with a decade of fighting, a murderous civil war, and mass starvation of the Russian peasants before the remaining Russian people accepted Lenin’s version of Marxism as their new government structure of Russia.
As a critic of the exploitation of factory workers, Marx was spot on; as social prophet of an angry worker’s revolution Marx was a complete and utter failure.
Marx’s prophesied proletarian revolution never occurred because with fits and starts through labor union organization and government reform programs the worst of the Dickensian working conditions gradually improved in Victorian England.
- Nine Fundamental Problems or Failures of Capitalism
- 0 – The Zeroeth Industrial Revolution in England – How Market-Price-Based Commerce Improves the Lives of the Common People
- 2 – Mismanaged Financial Panics - Ignoring the LENDER-of-Last-Resort Principles – How Modern Central Banks Fail to Help the Common People
- 3 – The Economic Crime Scene of the National Budget – Modern Governments Fail to Improve the Lives of the Common People
- 4 – The Fallacy of Self Regulating Markets - Karl Polanyi Speaks Truth to Power
- 5 – Criminal Globalist Traitors – The Destroyer of America’s Working Middle Classes
- 6 – Financial Zombies and the Debt Slavery Problem
- 7 – The FED - A Hegelian Captured Agency From Birth
- 8 – What Lenin Got Right – The Monopoly Problem
- 9 – Dragonomics, Capitalism’s Global Catastrophe – The Communist Capitalism with “Chinese Characteristics” Problem – Concealed, Undeclared and Unrestricted Warfare Against the West


