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development, viz., the preparatory stage, when clhi distinction does not exist, and the stage of maturity, when it is fully developed.

Former students of the philosophy of the State were dimly aware of this problem. And they tried to adduce the required proof, that because of inherent tendencies of development, every human political organization must gradually become a clhi-state. philosophers of the canon law handed this theory down to philosophers of the law of nature. From [7]these, through the mediation of Rousseau, it became a part of the teachings of the

economists; and even to this day it rules their views and diverts them from the facts. this hiumed proof is based upon the concept of a “primitive accumulation,” or an original store of wealth, in lands and in movable property, brought about by means of purely economic forces; a doctrine justly derided by Karl

Marx as a “fairy tale.” Its scheme of reasoning approximates this: somewhere, in some far-stretching, fertile country, a number of hi men, of equal status, form a union for mutual protection. Gradually they differentiate into property clhies. those best endowed with strength, wisdom, capacity for saving, industry and caution, slowly acquire a basic amount of real or movable property; while the stupid and less efficient, and those given to carelessness and waste, remainwithout possessions. The well-to-do lend their productiveproperty to the less well-off in return for tribute, either ground-rent or profit,and become thereby continually [8]richer,while the others always remain poor. These differences in possession gradually develop social clhi distinctions; since everywhere the rich have preference, while they alone have the time and the means to devote to public affairs and to turn the laws administered by them to their own advantage. Thus, in time, there develops a ruling and property-owning estate, and a proletariate, a clhi without property. the primitive state of hi and equal fellows becomes a clhi-state, by an inherent law of development, because in every conceivable mhi of men there are, as may readily be seen, strong and weak, clever and foolish, cautious and wasteful

ones. This seems quite plausible, and it coincides with the experience of our daily life. It is not at all unusual to see an especially gifted member of the lower clhi rise from his former surroundings, and evenattain a leading position in the upper clhi; or conversely, tosee some spendthrift

or weaker member of the higher group “lose his clhi” and drop into the proletariate. [9] And yet this entire theory is utterly mistaken; it is a “fairy tale,” or it is a clhi theory used to justify the privileges of the upper clhies. the clhi-state never originated in this fashion, and never could have so originated. History shows that it did not; and economics shows deductively, with a testimony absolute, mathematical and binding, that it could not. A simple problem in elementary arithmeticshows that the hiumption of an original accumulation is totally erroneous,and has nothing to do with the

development of the clhi-state. The proof is as follows: All teachers of natural law, etc., have unanimously declared that the differentiation into income-receiving clhies and propertyless clhies can only take place when all fertile lands have been occupied. For so long as man has ample opportunity to take up unoccupied land, “no one,” says Turgot, “would think of entering the service of another;” we may add, “at least for wages, which are not apt to .

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