I began this book to the tune of German bombs, and I begin this second chapter in the added racket of the barrage. The yellow gun-flashes are lighting the sky, the splinters are rattling on the housetops, and London Bridge is falling down, falling down, falling down. Anyone able to read a map knows that we are in deadly danger. I do not mean that we are beaten or need be beaten. Almost certainly the outcome depends on our own will. But at this moment we are in the soup, full fathom five, and we have been brought there by follies which we are still committing and which will drown us altogether if we do not mend our ways quickly.

What this war has demonstrated is that private capitalism – that is, an economic system in which land, factories, mines and transport are owned privately and operated solely for profit – does not work. It cannot deliver the goods. This fact had been known to millions of people for years past, but nothing ever came of it, because there was no real urge from below to alter the system, and those at the top had trained themselves to be impenetrably stupid on just this point. Argument and propaganda got one nowhere. The lords of property simply sat on their bottoms and proclaimed that all was for the best. Hitler's conquest of Europe, however, was a physical debunking of capitalism. War, for all its evil, is at any rate an unanswerable test of strength, like a try-your-grip machine. Great strength returns the penny, and there is no way of faking the result.

When the nautical screw was first invented, there was a controversy that lasted for years as to whether screw-steamers or paddle-steamers were better. The paddle-steamers, like all obsolete things, had their champions, who supported them by ingenious arguments. Finally, however, a distinguished admiral tied a screw-steamer and a paddle-steamer of equal horsepower stern to stern and set their engines running. That settled the question once and for all. And it was something similar that happened on the fields of Norway and of Flanders. Once and for all it was proved that a planned economy is stronger than a planless one. But it is necessary here to give some kind of definition to those much-abused words, Socialism and Fascism.

Socialism is usually defined as ‘common ownership of the means of production’. Crudely: the State, representing the whole nation, owns everything, and everyone is a State employee. This does not mean that people are stripped of private possessions such as clothes and furniture, but it does mean that all productive goods, such as land, mines, ships and machinery, are the property of the State. The State is the sole large-scale producer. It is not certain that Socialism is in all ways superior to capitalism, but it is certain that, unlike capitalism, it can solve the problems of production and consumption. At normal times a capitalist economy can never consume all that it produces, so that there is always a wasted surplus (wheat burned in furnaces, herrings dumped back into the sea etc. etc.) and always unemployment. In time of war, on the other hand, it has difficulty in producing all that it needs, because nothing is produced unless someone sees his way to making a profit out of it.

In a Socialist economy these problems do not exist. The State simply calculates what goods will be needed and does its best to produce them. Production is only limited by the amount of labour and raw materials. Money, for internal purposes, ceases to be a mysterious all-powerful thing and becomes a sort of coupon or ration-ticket, issued in sufficient quantities to buy up such consumption goods as may be available at the moment.

However, it has become clear in the last few years that ‘common ownership of the means of production’ is not in itself a sufficient definition of Socialism. One must also add the following: approximate equality of incomes (it need be no more than approximate), political democracy, and abolition of all hereditary privilege, especially in education. These are simply the necessary safeguards against the reappearance of a class-system. Centralized ownership has very little meaning unless the mass of the people are living roughly upon an equal level, and have some kind of control over the government. ‘The State’ may come to mean no more than a self-elected political party, and oligarchy and privilege can return, based on power rather than on money.

But what then is Fascism?

Fascism, at any rate the German version, is a form of capitalism that borrows from Socialism just such features as will make it efficient for war purposes. Internally, Germany has a good deal in common with a Socialist state. Ownership has never been abolished, there are still capitalists and workers, and – this is the important point, and the real reason why rich men all over the world tend to sympathize with Fascism – generally speaking the same people are capitalists and the same people workers as before the Nazi revolution. But at the same time the State, which is simply the Nazi Party, is in control of everything. It controls investment, raw materials, rates of interest, working hours, wages. The factory owner still owns his factory, but he is for practical purposes reduced to the status of a manager. Everyone is in effect a State employee, though the salaries vary very greatly. The mere efficiency of such a system, the elimination of waste and obstruction, is obvious. In seven years it has built up the most powerful war machine the world has ever seen.

But the idea underlying Fascism is irreconcilably different from that which underlies Socialism. Socialism aims, ultimately, at a world-state of free and equal human beings. It takes the equality of human rights for granted. Nazism assumes just the opposite. The driving force behind the Nazi movement is the belief in human inequality, the superiority of Germans to all other races, the right of Germany to rule the world. Outside the German Reich it does not recognize any obligations. Eminent Nazi professors have ‘proved’ over and over again that only nordic man is fully human, have even mooted the idea that non-nordic peoples (such as ourselves) can interbreed with gorillas! Therefore, while a species of war-Socialism exists within the German state, its attitude towards conquered nations is frankly that of an exploiter. The function of the Czechs, Poles, French, etc. is simply to produce such goods as Germany may need, and get in return just as little as will keep them from open rebellion. If we are conquered, our job will probably be to manufacture weapons for Hitler's forthcoming wars with Russia and America. The Nazis aim, in effect, at setting up a kind of caste system, with four main castes corresponding rather closely to those of the Hindu religion. At the top comes the Nazi party, second come the mass of the German people, third come the conquered European populations. Fourth and last are to come the coloured peoples, the ‘semi-apes’ as Hitler calls them, who are to be reduced quite openly to slavery.

However horrible this system may seem to us, it works. It works because it is a planned system geared to a definite purpose, world-conquest, and not allowing any private interest, either of capitalist or worker, to stand in its way. British capitalism does not work, because it is a competitive system in which private profit is and must be the main objective. It is a system in which all the forces are pulling in opposite directions and the interests of the individual are as often as not totally opposed to those of the State.

All through the critical years British capitalism, with its immense industrial plant and its unrivalled supply of skilled labour, was unequal to the strain of preparing for war. To prepare for war on the modern scale you have got to divert the greater part of your national income to armaments, which means cutting down on consumption goods. A bombing plane, for instance, is equivalent in price to fifty small motor cars, or eight thousand pairs of silk stockings, or a million loaves of bread. Clearly you can't have many bombing planes without lowering the national standard of life. It is guns or butter, as Marshal Goering remarked. But in Chamberlain's England the transition could not be made. The rich would not face the necessary taxation, and while the rich are still visibly rich it is not possible to tax the poor very heavily either. Moreover, so long as profit was the main object the manufacturer had no incentive to change over from consumption goods to armaments. A businessman's first duty is to his shareholders. Perhaps England needs tanks, but perhaps it pays better to manufacture motor cars. To prevent war material from reaching the enemy is common sense, but to sell in the highest market is a business duty. Right at the end of August 1939 the British dealers were tumbling over one another in their eagerness to sell Germany tin, rubber, copper and shellac – and this in the clear, certain knowledge that war was going to break out in a week or two. It was about as sensible as selling somebody a razor to cut your throat with. But it was ‘good business’.

And now look at the results. After 1934 it was known that Germany was rearming. After 1936 everyone with eyes in his head knew that war was coming. After Munich it was merely a question of how soon the war would begin. In September 1939 war broke out. Eight months later it was discovered that, so far as equipment went, the British army was barely beyond the standard of 1918. We saw our soldiers fighting their way desperately to the coast, with one aeroplane against three, with rifles against tanks, with bayonets against tommy-guns. There were not even enough revolvers to supply all the officers. After a year of war the regular army was still short of 300,000 tin hats. There had even, previously, been a shortage of uniforms – this in one of the greatest woollen-goods producing countries in the world!

What had happened was that the whole moneyed class, unwilling to face a change in their way of life, had shut their eyes to the nature of Fascism and modern war. And false optimism was fed to the general public by the gutter press, which lives on its advertisements and is therefore interested in keeping trade conditions normal. Year after year the Beaverbrook press assured us in huge headlines that THERE WILL BE NO WAR, and as late as the beginning of 1939 Lord Rothermere was describing Hitler as ‘a great gentleman’. And while England in the moment of disaster proved to be short of every war material except ships, it is not recorded that there was any shortage of motor cars, fur coats, gramophones, lipstick, chocolates or silk stockings. And dare anyone pretend that the same tug-of-war between private profit and public necessity is not still continuing? England fights for her life, but business must fight for profits. You can hardly open a newspaper without seeing the two contradictory processes happening side by side. On the very same page you will find the Government urging you to save and the seller of some useless luxury urging you to spend. Lend to Defend, but Guinness is Good for You. Buy a Spitfire, but also buy Haig and Haig, Pond's Face Cream and Black Magic Chocolates.

But one thing gives hope – the visible swing in public opinion. If we can survive this war, the defeat in Flanders will turn out to have been one of the great turning-points in English history. In that spectacular disaster the working class, the middle class and even a section of the business community could see the utter rottenness of private capitalism. Before that the case against capitalism had never been proved. Russia, the only definitely Socialist country, was backward and far away. All criticism broke itself against the rat-trap faces of bankers and the brassy laughter of stockbrokers. Socialism? Ha! ha! ha! Where's the money to come from? Ha! ha! ha! The lords of property were firm in their seats, and they knew it. But after the French collapse there came something that could not be laughed away, something that neither cheque-books nor policemen were any use against – the bombing. Zweee – BOOM! What's that? Oh, only a bomb on the Stock Exchange. Zweee – BOOM! Another acre of somebody's valuable slum-property gone west. Hitler will at any rate go down in history as the man who made the City of London laugh on the wrong side of its face. For the first time in their lives the comfortable were uncomfortable, the professional optimists had to admit that there was something wrong. It was a great step forward. From that time onwards the ghastly job of trying to convince artificially stupefied people that a planned economy might be better than a free-for-all in which the worst man wins – that job will never be quite so ghastly again.

The difference between Socialism and capitalism is not primarily a difference of technique. One cannot simply change from one system to the other as one might install a new piece of machinery in a factory, and then carry on as before, with the same people in positions of control. Obviously there is also needed a complete shift of power. New blood, new men, new ideas – in the true sense of the word, a revolution.

I have spoken earlier of the soundness and homogeneity of England, the patriotism that runs like a connecting thread through almost all classes. After Dunkirk anyone who had eyes in his head could see this. But it is absurd to pretend that the promise of that moment has been fulfilled. Almost certainly the mass of the people are now ready for the vast changes that are necessary; but those changes have not even begun to happen.

England is a family with the wrong members in control. Almost entirely we are governed by the rich, and by people who step into positions of command by right of birth. Few if any of these people are consciously treacherous, some of them are not even fools, but as a class they are quite incapable of leading us to victory. They could not do it, even if their material interests did not constantly trip them up. As I pointed out earlier, they have been artificially stupefied. Quite apart from anything else, the rule of money sees to it that we shall be governed largely by the old – that is, by people utterly unable to grasp what age they are living in or what enemy they are fighting. Nothing was more desolating at the beginning of this war than the way in which the whole of the older generation conspired to pretend that it was the war of 1914-18 over again. All the old duds were back on the job, twenty years older, with the skull plainer in their faces. Ian Hay was cheering up the troops, Belloc was writing articles on strategy, Maurois doing broadcasts, Bairnsfather drawing cartoons. It was like a tea-party of ghosts. And that state of affairs has barely altered. The shock of disaster brought a few able men like Bevin to the front, but in general we are still commanded by people who managed to live through the years 1931-9 without even discovering that Hitler was dangerous. A generation of the unteachable is hanging upon us like a necklace of corpses.

As soon as one considers any problem of this war – and it does not matter whether it is the widest aspect of strategy or the tiniest detail of home organization – one sees that the necessary moves cannot be made while the social structure of England remains what it is. Inevitably, because of their position and upbringing, the ruling class are fighting for their own privileges, which cannot possibly be reconciled with the public interest. It is a mistake to imagine that war aims, strategy, propaganda and industrial organization exist in watertight compartments. All are interconnected. Every strategic plan, every tactical method, even every weapon will bear the stamp of the social system that produced it. The British ruling class are fighting against Hitler, whom they have always regarded and whom some of them still regard as their protector against Bolshevism. That does not mean that they will deliberately sell out; but it does mean that at every decisive moment they are likely to falter, pull their punches, do the wrong thing.

Until the Churchill Government called some sort of halt to the process, they have done the wrong thing with an unerring instinct ever since 1931. They helped Franco to overthrow the Spanish Government, although anyone not an imbecile could have told them that a Fascist Spain would be hostile to England. They fed Italy with war materials all through the winter of 1939-40, although it was obvious to the whole world that the Italians were going to attack us in the spring. For the sake of a few hundred thousand dividend-drawers they are turning India from an ally into an enemy. Moreover, so long as the moneyed classes remain in control, we cannot develop any but a defensive strategy. Every victory means a change in the status quo. How can we drive the Italians out of Abyssinia without rousing echoes among the coloured peoples of our own Empire? How can we even smash Hitler without the risk of bringing the German Socialists and Communists into power? The left-wingers who wail that ‘this is a capitalist war’ and that ‘British Imperialism’ is fighting for loot have got their heads screwed on backwards. The last thing the British moneyed class wish for is to acquire fresh territory. It would simply be an embarrassment. Their war aim (both unattainable and unmentionable) is simply to hang on to what they have got.

Internally, England is still the rich man's Paradise. All talk of ‘equality of sacrifice’ is nonsense. At the same time as factory-workers are asked to put up with longer hours, advertisements for ‘Butler. One in family, eight in staff’ are appearing in the press. The bombed-out populations of the East End go hungry and homeless while wealthier victims simply step into their cars and flee to comfortable country houses. The Home Guard swells to a million men in a few weeks, and is deliberately organized from above in such a way that only people with private incomes can hold positions of command. Even the rationing system is so arranged that it hits the poor all the time, while people with over £2,000 a year are practically unaffected by it. Everywhere privilege is squandering good will. In such circumstances even propaganda becomes almost impossible. As attempts to stir up patriotic feeling, the red posters issued by the Chamberlain Government at the beginning of the war broke all depth-records. Yet they could not have been much other than they were, for how could Chamberlain and his followers take the risk of rousing strong popular feeling against Fascism? Anyone who was genuinely hostile to Fascism must also be opposed to Chamberlain himself and to all the others who had helped Hitler into power. So also with external propaganda. In all Lord Halifax's speeches there is not one concrete proposal for which a single inhabitant of Europe would risk the top joint of his little finger. For what war aim can Halifax, or anyone like him, conceivably have, except to put the clock back to 1933?

It is only by revolution that the native genius of the English people can be set free. Revolution does not mean red flags and street fighting, it means a fundamental shift of power. Whether it happens with or without bloodshed is largely an accident of time and place. Nor does it mean the dictatorship of a single class. The people in England who grasp what changes are needed and are capable of carrying them through are not confined to any one class, though it is true that very few people with over £2,000 a year are among them. What is wanted is a conscious open revolt by ordinary people against inefficiency, class privilege and the rule of the old. It is not primarily a question of change of government. British governments do, broadly speaking, represent the will of the people, and if we alter our structure from below we shall get the government we need. Ambassadors, generals, officials and colonial administrators who are senile or pro-Fascist are more dangerous than Cabinet ministers whose follies have to be committed in public. Right through our national life we have got to fight against privilege, against the notion that a half-witted public-schoolboy is better for command than an intelligent mechanic. Although there are gifted and honest individuals among them, we have got to break the grip of the moneyed class as a whole. England has got to assume its real shape. The England that is only just beneath the surface, in the factories and the newspaper offices, in the aeroplanes and the submarines, has got to take charge of its own destiny.

In the short run, equality of sacrifice, ‘war-Communism’, is even more important than radical economic changes. It is very necessary that industry should be nationalized, but it is more urgently necessary that such monstrosities as butlers and ‘private incomes’ should disappear forthwith. Almost certainly the main reason why the Spanish Republic could keep up the fight for two and a half years against impossible odds was that there were no gross contrasts of wealth. The people suffered horribly, but they all suffered alike. When the private soldier had not a cigarette, the general had not one either. Given equality of sacrifice, the morale of a country like England would probably be unbreakable. But at present we have nothing to appeal to except traditional patriotism, which is deeper here than elsewhere, but is not necessarily bottomless. At some point or another you have got to deal with the man who says ‘I should be no worse off under Hitler’. But what answer can you give him – that is, what answer that you can expect him to listen to – while common soldiers risk their lives for two and sixpence a day, and fat women ride about in Rolls-Royce cars, nursing pekineses?

It is quite likely that this war will last three years. It will mean cruel overwork, cold dull winters, uninteresting food, lack of amusements, prolonged bombing. It cannot but lower the general standard of living, because the essential act of war is to manufacture armaments instead of consumable goods. The working class will have to suffer terrible things. And they will suffer them, almost indefinitely, provided that they know what they are fighting for. They are not cowards, and they are not even internationally minded. They can stand all that the Spanish workers stood, and more. But they will want some kind of proof that a better life is ahead for themselves and their children. The one sure earnest of that is that when they are taxed and overworked they shall see that the rich are being hit even harder. And if the rich squeal audibly, so much the better.

We can bring these things about, if we really want to. It is not true that public opinion has no power in England. It never makes itself heard without achieving something; it has been responsible for most of the changes for the better during the past six months. But we have moved with glacier-like slowness, and we have learned only from disasters. It took the fall of Paris to get rid of Chamberlain and the unnecessary suffering of scores of thousands of people in the East End to get rid or partially rid of Sir John Anderson. It is not worth losing a battle in order to bury a corpse. For we are fighting against swift evil intelligences, and time presses, and history to the defeated May say Alas! but cannot alter or pardon.

During the last six months there has been much talk of ‘the Fifth Column’. From time to time obscure lunatics have been jailed for making speeches in favour of Hitler, and large numbers of German refugees have been interned, a thing which has almost certainly done us great harm in Europe. It is of course obvious that the idea of a large, organized army of Fifth Columnists suddenly appearing on the streets with weapons in their hands, as in Holland and Belgium, is ridiculous. Nevertheless a Fifth Column danger does exist. One can only consider it if one also considers in what way England might be defeated.

It does not seem probable that air bombing can settle a major war. England might well be invaded and conquered, but the invasion would be a dangerous gamble, and if it happened and failed it would probably leave us more united and less Blimp-ridden than before. Moreover, if England were overrun by foreign troops the English people would know that they had been beaten and would continue the struggle. It is doubtful whether they could be held down permanently, or whether Hitler wishes to keep an army of a million men stationed in these islands. A government of –, – and – (you can fill in the names) would suit him better. The English can probably not be bullied into surrender, but they might quite easily be bored, cajoled or cheated into it, provided that, as at Munich, they did not know that they were surrendering. It could happen most easily when the war seemed to be going well rather than badly. The threatening tone of so much of the German and Italian propaganda is a psychological mistake. It only gets home on intellectuals. With the general public the proper approach would be ‘Let's call it a draw’. It is when a peace-offer along those lines is made that the pro-Fascists will raise their voices.

But who are the pro-Fascists? The idea of a Hitler victory appeals to the very rich, to the Communists, to Mosley's followers, to the pacifists, and to certain sections among the Catholics. Also, if things went badly enough on the Home Front, the whole of the poorer section of the working class might swing round to a position that was defeatist though not actively pro-Hitler.

In this motley list one can see the daring of German propaganda, its willingness to offer everything to everybody. But the various pro-Fascist forces are not consciously acting together, and they operate in different ways.

The Communists must certainly be regarded as pro-Hitler, and are bound to remain so unless Russian policy changes, but they have not very much influence. Mosley's Blackshirts, though now lying very low, are a more serious danger, because of the footing they probably possess in the armed forces. Still, even in its palmiest days Mosley's following can hardly have numbered 50,000. Pacifism is a psychological curiosity rather than a political movement. Some of the extremer pacifists, starting out with a complete renunciation of violence, have ended by warmly championing Hitler and even toying with antisemitism. This is interesting, but it is not important. ‘Pure’ pacifism, which is a by-product of naval power, can only appeal to people in very sheltered positions. Moreover, being negative and irresponsible, it does not inspire much devotion. Of the membership of the Peace Pledge Union, less than fifteen per cent even pay their annual subscriptions. None of these bodies of people, pacifists, Communists or Blackshirts, could bring a large-scale stop-the-war movement into being by their own efforts. But they might help to make things very much easier for a treacherous government negotiating surrender. Like the French Communists, they might become the half-conscious agents of millionaires.

The real danger is from above. One ought not to pay any attention to Hitler's recent line of talk about being the friend of the poor man, the enemy of plutocracy, etc. etc. Hitler's real self is in Mein Kampf, and in his actions. He has never persecuted the rich, except when they were Jews or when they tried actively to oppose him. He stands for a centralized economy which robs the capitalist of most of his power but leaves the structure of society much as before. The State controls industry, but there are still rich and poor, masters and men. Therefore, as against genuine Socialism, the moneyed class have always been on his side. This was crystal clear at the time of the Spanish Civil War, and clear again at the time when France surrendered. Hitler's puppet government are not working men, but a gang of bankers, gaga generals and corrupt right-wing politicians.

That kind of spectacular, conscious treachery is less likely to succeed in England, indeed is far less likely even to be tried. Nevertheless, to many payers of supertax this war is simply an insane family squabble which ought to be stopped at all costs. One need not doubt that a ‘peace’ movement is on foot somewhere in high places; probably a shadow Cabinet has already been formed. These people will get their chance not in the moment of defeat but in some stagnant period when boredom is reinforced by discontent. They will not talk about surrender, only about peace; and doubtless they will persuade themselves, and perhaps other people, that they are acting for the best. An army of unemployed led by millionaires quoting the Sermon on the Mount – that is our danger. But it cannot arise when we have once introduced a reasonable degree of social justice. The lady in the Rolls-Royce car is more damaging to morale than a fleet of Goering's bombing planes.