Part 3 begins by introducing a few central beliefs that inform historical materialism. One of Marx’s theories, historical materialism is the idea that social and political change throughout history is largely the result of economic conditions and changes to how goods are produced and traded. In this framework, “the final causes of all social changes and political revolutions are to be sought, not in men’s brains, not in men’s better insights into eternal truth and justice, but in changes in the modes of production and exchange” (63). Therefore, the way society orders itself depends upon its class structure and division of wealth.

Engels reiterates the Marxist position on the birth of capitalism: Capitalism overtook feudalism, and handicraft gave way to modern industry. Likewise, he asserts that there is a conflict in modern capitalism and its modes of production—namely, that modern productive forces have “outgrown” the capitalist system. He also argues that this fact can be demonstrated objectively.

Engels returns to the three-tier model of phases of production, this time emphasizing its effect on the “social means of production” (65). He argues that, over time, production shifted from individuals with crafting expertise creating various means of sustenance (handicraft) to groups of laborers operating industrial machines that create goods solely for profit (modern industry).