The earlier Utopian Socialists did propose to do away with wages; in fact, they proposed to do away with money altogether, and invented various forms of "Labor Notes" as a means of giving equality of remuneration for given quantities of labor, and providing a medium for the exchange of wealth. But when the Socialists of to-day speak of the "abolition of wages," or of the wages system, they use the words in the same sense as they speak of the abolition of capital: _they would abolish only the social relations implied in the terms_. Just as they do not mean by the abolition of capital the destruction of the machinery and implements of production, but the social relation in which they are used to create profit for the few, so, when they speak of the abolition of the wages system, they mean only the use of wages to exploit the producers for the gain of the owners of the means of production and exchange. Though the name "wages" might not be changed, a money payment for labor in a democratic arrangement of industry, representing an approximation to the full value of the labor, minus only its share of the cost of maintaining the public services, and the weaker, dependent members of society, would be vastly different from a money payment for labor by one individual to other individuals, representing an approximation to their cost of living, bearing no definite relation to the value of their labor products, and paid in lieu of those products with a view to the gathering of a rich surplus value by the payer.
Karl Kautsky, perhaps the greatest living exponent of the theories of modern Socialism, has made this point perfectly clear. He accepts without reserve the belief that wages, unequal and paid in money, will be the method of remuneration for labor in the Socialist régime.[195] When too many laborers rush into certain branches of industry, the natural way to lessen their number and to increase the number of laborers in other branches where there is need for them, will be to reduce wages in the one and to increase them in the other. Socialism, instead of being defined as an attempt to make men equal, might perhaps be more justly and accurately defined as a social system based upon the natural inequalities of mankind. Not human equality, but equality of opportunity, and the prevention of the creation of artificial inequalities by privilege, is the essence of Socialism.