At the beginning of 1920 in the world labor movement doubts arose in connection with the new economic orientation. The years of growth of the labor movement we can consider from about the end of 1918 during the whole of 1919 and to about the middle of 1920; marked on one hand, by the stormy growth of the trade union movement, and on the other, the retreat of the bourgeoisie in the sphere of social reforms: The establishment of the eight-hour day, the increase of talk about socialization, the creation in many countries of committees for socialization, etc.
From the middle of 1920, begins the new turn in economics, and the crucial point is reached—the crisis in international trade and in production. It begins in May, in Japan, spreads to America and together with the falling of wholesale prices, did not only stop the retreat of the bourgeoisie, but the bourgeoisie began to advance. This advance of capital continued through 1920, 1921 and 1922 and has not stopped yet in 1923.
The advance of capital begins together with the economic crisis. What is the purpose of this advance of capital, and how did the international labor movement react to it? The purpose of the advance of capital was to lower the cost of production as the world market began to slacken and competition increased. There was a surplus of commodities, which although needed by the masses, could not be bought by them on account of high prices. This caused the employers to force down the cost of production in order to place cheaper goods on the market. It was necessary to find the line of least resistance, and this line happened to be labor-power. Not by perfecting the technique of production, not by increasing the volume of production, but by forcing down the price of labor-power, by taking away all that was granted labor socially, by "explaining" the eight hour day, by cutting down the wages, by taking away gains—here is the line along which the advance of capital goes.
I mention one instance in order to show the volume of this advance, The official statistics of the reduction of wages in 1921 affected 7,000,000 workers in England; during the whole year of 1921, the workers lost in wage reductions five million pounds sterling per week. In 1922 the workers lost in wages six million pounds sterling per week. If we take both years together the loss in wages will reach the colossal sum of two and three quarters billions of dollars ($2,750,000,000). This great cut in wages is of real significance for these billions which were cut from wages lowered production costs and permitted competition on the world market.
The "Fight" of the Amsterdam International Against the Capitalist Advance
Now, what did the Amsterdam International as an organization do in order to fight against the capitalist advance? First of all, in the
