and political power is fundamental and can control economic power. He argues that formal freedom is essential in ensuring a democratic economic policy, and social engineering is necessary to tame economic demons. Popper criticizes the Marxist approach to the control of power and argues that democracy is the only means to achieve control over the state. Marx's Prophecy Chapter 18, "The Coming of Socialism", discusses Marx's economic historicism. Popper explains Marx's analysis of the economic forces of capitalism and his prophecy of the coming of socialism, which consisted of three steps. He argues that Marx's conclusion of a classless society does not follow from the premises. He also notes that the economic system of modern democracies is different from the capitalism Marx described, and most of Marx's ten-point program for a communist revolution has been put into practice in modern democracies. Popper argues that strengthening the premises of Marx's prophetic argument could lead to a valid conclusion, but assumptions about moral and ideological factors are beyond our ability to reduce to economic factors. Popper examines the effects of Marx's historical prophecy on recent European history and notes that Marxist leaders had no practical program beyond "Workers of all countries, unite!" and waited for the promised suicide of capitalism, but it was too late, and their opportunity was gone. Chapter 19, "The Social Revolution", is a further critique of Marxism, discussing its flaws and potential for violence. Popper argues that Marxism does not account for the many possible developments that could occur in society, and its prophecy of a potentially violent revolution is harmful. Popper also examines the ambiguous attitude towards the problem of violence in Marxist parties and how it influences the possibility of winning the battle of democracy. Ultimately, Popper asserts that all political problems are institutional problems and that progress towards more equality can only be safeguarded by the institutional control of power. Chapter 20, "Capitalism and Its Fate", discusses Marx's theories of capitalism. Marx believed that the accumulation of capital would lead to "(a) increased productivity; increase of wealth; and concentration of wealth in a few hands; (b) increase of pauperism and misery; the workers are kept on subsistence or starvation wages, mainly by the fact that the surplus of workers, called the 'industrial reserve army', keeps the wages on the lowest possible level." Popper criticizes Marx's theory of value, but agrees with his analysis of the