第4章

Bytheworkersthemselvesandevenbysocialreformers，theinjuryinflicteduponwagesandthestandardoflivingbyirregularityofemploymentisappreciatedfarmoreadequatelythantherelatedinjuryinflictedonthephysiqueandmoraleoftheworkerbysandwichingperiodsofover-exertionbetweenintervalsofidleness。 Thisbriefsurvey，however，isnoplaceforadiscussionofthecausesandremediesofirregularemployment。Itmustsufficetonotethatoveralargenumberofthefieldsofindustrytheexcessesanddefectsofsuchirregularityprevailtoanextentwhichaddsgreatlytothetotalhumancostoftheproducts。Sofarasournationisconcerned，thereisnoreasontoholdthatthiswasteisincreasing。Evidenceofhoursoflabourandofunemployment，indeed，appeartoindicatethatitissomewhatdiminishing。 Buttheunequaltime-distributionofhumancostsmustcontinuetorankasagreatenhancementoftheaggregateofsuchcosts。 §；2。Butnotlessinjuriousthantheunequaltreatmentofequals，istheequaltreatmentofunequals。Thebadhumaneconomyofworkingimmaturechildrenisalessonwhicheventhemost\'civilised\'nationshavebeenexceedinglyslowtolearn。Thebadhumaneconomyofworkingoldpersonsofdecliningvigour，whenable-bodiedadultlabourisavailable，issofarfrombeinggenerallyrecognisedthatemployersareactuallycommendedonthegroundofhumanityforkeepingatlabourtheiragedemployees，whenyoungerandstrongerworkersareavailable。 Fortunately，thelargerprovisionforretiringpensionsatteststhegrowingrecognitionofthisaggravationofthehumancostsofindustry。Inbothcasesalike，theemploymentoftheyoungandoftheold，theerrorarisesfromashort-sightedviewoftheinterestsofthesinglepersonorhissinglefamily，insteadofafar-sightedviewofthewelfareofthecommunity。Itisoftenasourceofimmediategaintoaworking-classfamilytoputthechildrenouttowage-earningasearlyaspossible，andtokeepoldpeopleworkingaslongastheycangetworktodo。Itdoesnotpaythenation，evenintheeconomicsense，thateitherofthesethingsshouldbedone。Thecaseofchild-labouris，ofcourse，themoreserious，inthatitevidentlyentailsnotmerelyawastefulstrainuponfeebleorganisms，butanevenheavierfuturecostinstuntedgrowthandimpairedefficiencythroughoutanentirelife。 Whentheplayofcurrenteconomicforcesplacesuponwomenworkwhichmencouldperformmoreeasily，orcreateswomen\'sindustrieswithconditionsoflabourinvolvingexcessivestrainsupontheorganism，thedoublehumancostsareevenheavier。Forifexcessivefatigueornervousstrainaffectsawomanasworker，theinjuriouscostsarelikelytobecontinuedandenhancedthroughhercapacityformotherhood。Touseupordamageitswomenbysettingthemtohardwagelabourinmillandworkshopisprobablythegreatesthumanwasteanationcouldpractiseorpermit。Forsomeoftheprevailingtendenciesofmodernindustrialismappeartobemore\'costly\'intheirbearinguponwomenthanonmen。 Inregardtofactorywork，andallotherindustrialworkinvolvingalongcontinuousmuscularornervousstrain，or，asinshoplabourwithitslonghoursofstanding，medicalauthoritiesareunanimousinholdingthatwomensuffermorethanmen。1\'Ifalikeamountofphysicaltoilandeffortbeimposedonwomen，theysuffertoalargerdegree，\'statesSirW。MacCormac。2Statisticsofemploymentfromvariouscountriesagreeinshowingthattheamountofmorbidity，asmeasuredbythenumberofdayslostbyillness，isgreateramongworking-womenthanamongworking-men，andthatthemortalityofworking-womenisgreaterthanthatofworkingmen，notwithstandingthefactthattheaveragelifeofafemaleislongerthanthatofamale。Longhoursandspeeding-upofmachinerythusevidentlyinflictgraverorganiccostsonwomenthanonmen。Wherepieceworkisinvogue，itfurnishesastrongerstimulustoover-straininwomen，becausethegenerallownessoftheirwagegivesalargerimportancetoeachaddition。 §；3。Thusincomparingthehumancostsofproducingagivenquantityofgoods，dueaccountmustbetakenofthedistributionoftheoutputofproductiveenergyamongworkersofdifferentsexes，andages。Theearliertendencyofthefactorysysteminthiscountry，theexistingtendencyinsomecountries，hasbeentoimposeagrowingofmonotonousandfatiguinglabouruponwomenandchildren。Atcertainstagesinthedevelopmentofindustrialmachinery，thishasbeenheldtobea\'profitable\'economy，andinmanyprocessesofhandlaboursubsidiarytothefactorysystemitstillsurvives。Thoughlegislationandotherinfluenceshavedonemuchtochecktheworstinjuriesofchildemploymentinfactoriesandworkshopsinmorecivilisedcommunities，agreatamountofhumancostisstillincurredunderthishead。Childhalf-timersarestillusedinconsiderablenumbersintextilefactories，whilethevastexpansionofdistributiveworkhassuckedintoprematurewage-earningimmensenumbersofboyswhooughttobeatschool。 ItisprobablethatthenettendencyofBritishindustryinrecentyearshasbeentowardsaslowreductionofthemoreinjuriousand\'costly\'formsoffemaleemployment。Thoughanenormousnumberoffemalesareengagedinworkthehoursandhygienicconditionsofwhichescapelegalregulation，probablyagrowingproportionofemployedwomencomeunderaneconomyofshorterhours。Thedrudgeryofdomesticserviceengagesalessnumberofwomen，whiletheopeningofalargervarietyofemploymentsbothinmanufactureandincommercehassomewhatimprovedtheirpowertoresisttheexcessivepressureofmachine-conditions。Therecentorganisedattackuponthe\'sweatedindustries\'，however，revealsthefactthatatthelowerlevelofmanytradesagreatmassofoppressiveandinjuriouslabourisextortedfromworking-women。 Certainformsofnewmechanicallabour，notinvolvingheavymuscularfatigue，buttaxingseverelythenervoussystem，areoccupyingalargenumberofwomen。Thetype-writerandthetelephonehavenotyetbeenbroughtintoconformitywiththedemandsofhealth。Thoughmachineryisgenerallybringinginitswakerestrictionsonhoursoflabour，thenormalwork-dayoffactory，officeandshopstillimposesagravelyexcessivestrainuponwomenemployees。Nosmallproportionofthisexcessivecostofwomen\'swork，however，isattributabletolegal，professional，orconventionalrestrictions，which，precludingwomenfromenteringmanyskilledandlucrativeemployments，compelthemtocompeteinlow-skilledandoverstockedlabour-markets。Thesocialwasteofsuchsexdiscriminationistwo-fold。Evenintradesandprofessionsforwhichmenhaveusuallyagreateraptitudethanwomen，somewomencanperformtheworkbetterandmoreeasilythansomemen，and，iftheyaredeniedequalopportunityofaccess，theworkisdoneworseoratagreaterhumancost。Therefusaltoadmitwomenintothelearnedprofessionsuponequaltermswithmenundoubtedlyinvolvesalosstosocietyofsomeofthefinestserviceofthehumanintellect，whileitentrustssomeoftheskilledandresponsiblework，thusdeniedtowomen，torelativelyignorantandincompetentmen。Theotherhumancostisperhapsevenheavier。Fortheexcessivecompetition，towhichwomenarethusexposedintheoccupationslefttothem，depressestheremunerationinmostinstancesbelowthetruelevelofphysicalefficiency，inducesorcompelsexcessivehoursoflabour，breaksdownthehealthofwomen-workersandinjurestheirlife。 §；4。Thisgeneralsurveyshowsthatthehuman\'costs\'oflabourarecloselyassociatedinmostcaseswiththatsubdivisionandspecialisationofactivitieswhichtakesitsextremeforminmachinetendingandwhichconformsmostcloselytomere\'repetition\'asdistinguishedfromthecreativebranchesofproduction。Butthisidentificationof\'repetition\'andhumancostscannotbepressedintoagenerallaw。Forreflectionshowsthatrepetitionorroutinedoesnotalwayscarrycost，andthatontheotherhandsomelabourwhichhasconsiderablevarietyisverycostly。Healthyorganiclifepermits，indeedrequires，acertainadmixtureofroutineorrepetitionwithitsmorecreativefunctions。 Acertainamountofregularrhythmicexerciseofthesamemusclesandnerve-centresyieldsvitalutilityandsatisfaction。Insomesportsthisexercisemaybecarriedsofarastoinvolveconsiderableelementsoffatigueandendurancewhichareoffsetduringtheiroccurrencebythesenseofpersonalprowessandtheinterestofachievement，Thissentimentalzestofendurancemaynotoriouslybecarriedtoextremes，injurioustothephysicalorganism。Moreover，acertainamountofnarrowphysicalroutineoftenfurnishesareliefelementforthetirednervesorbrain。Diggingorknitting，thoughintolerableasaconstantemployment，mayfurnishbytheirveryphysicalroutineanorganicbenefitwhenappliedasarecreation。Thesame，indeed，istrueofmostothernottootaxingformsofmanualormentalroutinelabour，especiallyiftheycontainsomeobviousutility。Someslightelementofskillseemsneededforcertainnatures，butabareuninterestingrepetitioncommonlysuffices。 Suchconsiderationsdisposeoftheassumptionthatallrepetitionorroutineinproductiveworkisnecessarilyindicativeofhumancostandcarriesnoorganicutilityorsatisfaction。Itisonlywhenrepetitionisextendedsoastoengagetoolargeashareofthetimeandenergyofahumanbeingthatitinvolvesacost。 So，ontheotherhand，itisnotthecasethatalllabourcontainingvarietyandopportunityforskilliscostlessandorganicallygood。Takeforanotableexampleagriculturallabour。Irregularityofsoilandweather，thechangesandchancesofanimalandvegetablelife，theperformanceofmanydifferentprocesses，removesuchworkfromthecategoryofexactroutine。 Yetmostofthelabourconnectedwithagricultureis，undertheactualconditionsofitsperformance，heavy，dullandjoyless。Ineachprocessthereisusuallyenoughrepetitionandmonotonytoinflictfatigue，andtheaccumulationofseparatefatiguesinalongday\'swork，unalleviatedbyadequatepersonalinterestintheprocessoritsproduct，makesaheavyburdenofcost。 Thesameholdsofotherdepartmentsofindustrywheresomeinherentelementsofskillandinterestarefound。Thetotalburdenofeffortgivenoutinalongday\'swork，continuedweekafterweek，yearafteryear，undertheconditionsofwagedom，greatlyoutweighsthesetechnicaladvantages。 Durationandcompulsioncancelmost，thoughnotall，ofthesuperiorityofsuchworkovermachinetending，orclerking。Alittlelabourinanyofthehandicrafts，inmachine-running，themanagementofmotor-carsorboats，ingardeningandothermodesofagriculture，servesasapleasantpastimewhenundertakenasavoluntaryandoccasionalemployment。Makeitregular，continuous，compulsory，andtheenjoymentsoonvanishes。Theveryelementsofinterestforthecasualamateuroftenconstitutetheheaviestcostfortheworkerwholivesbydoingthisandnothingelse。Takemotordrivingforanexample。Thequickexerciseofnerveandmuscle，thekeennessofeye，wristandattention，requiredtodriveeasily，quicklyandsafely，amidtrafficorinatangleofroads，givesnerveandinteresttodrivingasarecreation。Butthismultiplicationoflittlestrainsandrisks，accumulatinginalongday\'swork，andundertakendayafterday，inallconditionsofhealth，dispositionandweather，soonpassesfromanagreeableandstimulatingexerciseintoatoilsomedrudgery。 Considerationoftheworkinthedistributivetrades，wholesaleandretail，whichabsorbanever-growingproportionofourwage-earners，ismostinstructiveforunderstandingtherespectivepartsplayedbyspecialisation，duration，andcompulsioninthehumancosts。Machineryhaslittledirectcontrolovertheworkoftheseclerks，warehousemen，shop-assistants，typists，etc。:theirworkcontainsconstantlittleelementsofvarietyindetail，andamoderateamountofitimposesnofatigue。Butthescopeaffordedforpersonalskillorachievementisinsufficient；mostofitisunmeaninganduninterestingsofarasusefulresultsareconcerned；itinvolvesconstantobediencetotheordersofanother；anditisundulyprolonged。 §；5。Wearenowinapositiontosumuptheresultsofourgeneralanalysisofthehumancostsoflabour，inwhichTarde\'sdistinctionbetweencreationandimitationorrepetitionwasourstartingpoint。Sofarasthemerelyormainlyphysicalcostsareconcerned，themuscularandnervousstrainandfatigue，excessiverepetitionisatruedescriptionofthechiefcause。Machinetendingatahighpaceforalongworking-dayisinitselfthemost\'costly\'typeoflabour，and，insofarasamachinecontrolsthesortandpaceofworkdonebyahumanbeing，these\'costs\'accumulate。 Butmostworkisnotsodirectlycontrolledbymachinery，andyetissohighlyspecialisedthattheroutineconstantlyover-taxeswithfatiguethemuscles，nervesandattention。Thedurationandpaceofsuchlabourareusuallysuchastoheapupheavycostsofphysicalwearandtearandofphysicaldiscomforts。 Buttheantithesisofcreationandimitationorrepetitionhasadifferentsignificancefortheinterpretationofphysicalcosts。Thereitisnotsomuchtheabsenceofnoveltyinvolvedinrepetition，astheabsenceofpersonallibertyandspontaneitythatcountsmostheavily。Thereare，infact，fewsortsofnecessaryproductivelabourwhichamanisnotpreparedtodoforhimself，withsomemeasureofpersonalsatisfaction，ifhehaswithinhisowncontroltheperformanceofthistaskandtheresult。Butwhenanother\'swillandpurposesupersedehisown，prescribingactionstobedoneunderconditionsoftime，placeandmanner，determinedbythatother，thisservitudetoanother\'swillisalwaysirksomeandmaybedegrading。 Thehumancostofmostdomesticservicelieslargelyhere。Theworkitselfhasmoredetailedvarietyandinterestthanmost，andwherethehousewifeherselfdoesit，itoftenfurnishesanetfundofhumansatisfaction。Butthemoralandintellectualcostsofahiredservant，compelledtoobeythearbitraryandcapriciousordersofamistress，andtosuppressherownwill，tastesandinclinationsintheexecutionofhertask，areoftenveryheavy。Inasmallerdegreethisappliestoallwage-earnersengagedinanyworkwherescopefortheirfreevolitionistechnicallyfeasible。 Tosubstituteanother\'swillforone\'sown，inmatterswhereonehasawill，isalwaysahumancost。Thatcost，however，neednotbegreat。Whenaworkerisaunitoflabourinsomegreatbusiness，hisactionsconformingtoruleswhich，howevertroublesome，belongtothesystem，theconsciousnessoflossoflibertyisfarlessthanwhenthechangingwillofapersonalemployeroperatingamidthedetailsofhisworkistheinstrumentofdiscipline。 Ashop-girlinalargebusinesshasafeelingofgreaterindependencethanadomesticservant，afactory-handthanashop-girl，whilethelowwageofhomeworkersisinpartattributabletotheremovaloftheworkerfromthemediatedominationoftheemployer\'swill。 §；6。Inassessingthepsychicalelementsofcost，itiswelltodistinguishthoserelatedtoalossofliberty，oranencroachmentuponpersonality，fromthosewhicharetheconsciousresultsorcounterpartsofthephysicalstrains。Fortheenlargementofcertainofthesepsychicalcostsisanexceedinglyimportantfactorinwhatiscalled\'industrialunrest\'。Thisirksomenessofnarrowlyspecialisedlabourandofthe\'enslaving\' conditionsoftheordinaryworkinglifegrowswiththegrowthofintelligenceandsensibilityamongtheworking-classes。Undertheolderorder，ofacceptedclassdistinctionsandeconomicstatus，implicitobediencetotheemployer\'swillcarriednoconsciousmoralcost。Anewsenseofpersonaldignityandvaluehasnowariseninthebettereducatedgradesofworkerswhichinterfereswitharbitrarymodesofdiscipline。Whentheyarecalledupontodoworkinawaywhichappearstothemfoolish，injurious，orinequitable，asenseofresentmentisarousedwhichsmouldersthroughtheworkingweekasamoralcost。Witheverywideningofeducationtherecomes，moreover，adiscontentnotmerelywiththeparticularconditionsofthelabour，butwiththewholesystem，orsetofconditions，whichaddictssolargeaproportionoftheirworkinghoursandenergiestothedullheavytaskbywhichtheyearntheirliving。 Sotoothenarrowlimitationinthechoiceofworkwhichthelocalspecialisationofindustryinvolves，becomesagrowinggrievance。The\'conditionsoflabour\'forthemselvesandothers，takenasawhole，arerealisedasaninvasionandadegradationoftheirhumanity，offeringneitherstimulusnoropportunityforamantothrow\'himself\'intohiswork。Fortheworkonlycallsforafragmentofthat\'self\'andalwaysthesamefragment。 Soitistruethatnotonlyislabourdividedbutthelabourer。Anditismanifestthat，sofarashisorganichumannatureisconcerned，itsunusedportionsaredestinedtoidleness，atrophy，anddecay。 Thisanalysisoftheconditionsmayseldombefullyrealisedintheconsciousnessoftheworker。Buteducationhasgonefarenoughtomakethemrealfactorsofworking-classdiscontent。Theyconstitutealargemotiveintheworking-classmovementwhichwemaycalltherevoltoftheproduceragainsttheexcessivehumancostsofhisproduction。 Thisisthegreatandseriousindictmentagainsttheeconomyofdivisionoflabour。Associatedwithitisthechargethattheworkerinoneoftheseroutinesubdividedprocesseshasnoappreciationoftheutilityorsocialmeaningofhislabour。Hedoesnothimselfmakeanythingthatisanobjectofinteresttohim。Hiscontributiontothelongseriesofproductiveprocessesthatgototurnoutacommoditymaybeveryvaluable。But，ashecannotfromhislittleangleperceivethecooperativeunityoftheproductiveseries，itmeansnothingtohisintelligenceorheart。 Sonotonlydoestheperformanceofhistaskaffordhimnosatisfaction，butitsendorobjectisamatterofindifferencetohim。Thereisthisvitaldifferencebetweenthecarpenterwhomakesacupboardoradoor，fitsitintoitsplaceandseesthatitisgood，andthebricklayer\'slabourerwhomerelymixesmortarandcarriesbricksuponahod。Amanwhoisnotinterestedinhiswork，anddoesnotrecogniseiniteitherbeautyorutility，isdegradedbythatwork，whetherheknowsitornot。Whenhecomestoaclearconsciousnessofthatdegradation，thespiritualcostisgreatlyenhanced。Itistruethatspecialisationinlabourissociallyuseful，andthat，ifthatspecialisationdoesnotencroachtoolargelyupontheenergyandpersonalityoftheindividualworker，heisnotinjuredbuthelpedbythecontributiontosocialwealthwhichhisspecialworkenableshimtomake。Largerenlightenmentastotherealmeaningandvalueofhiswork，andthesenseofsocialservicewhichshouldfollow，mayindeedbeexpectedtoreduceconsiderablytheirksomenessofitspresentincidence。 Butitcandosoonlyupontwoconditions。Inthefirstplace，thedurationandstrainuponhisphysicalandmoralnaturemustbediminished。Secondly，thegeneralconditionsbothoflabourandofitsremunerationmustbesuchastoleadhimtorecognisethatthedisciplinewhichitenjoinsisconducivetoalargerliberty，viz。，thatofwillingcooperationwithhisfellowsintheproductionofsocialwelfare。Asyettheattainmentoftheseconditionshasnotkeptpacewiththenewdesiresandaspirationswhichhavegrownsorapidlyamongtherankandfileofworkersintheadvancedindustrialcountries。Henceanewburdenofspiritualcosts，expressinganincreaseddivergencebetweenconsciousaspirationsandthenormalconditionsoftheworker\'slot。Theeducationofthetownworker，theassociationwithhisfellowsinlargeworkshops，thelifeofthestreets，theeducationoftheschool，thenewspaper，thelibrary，theclub，havemadehimincreasinglysensitivetothenarrownessanddegradationofexcessiveroutineinjoylesslabour。 NOTES: 1。Cf。Goldmarck，PartII，pp。126。 2。ReportoftheSelectCommitteeoftheHouseofLordsonEarlyClosinginShops，1901。CHAPTERVIII:HUMANCOSTSINTHE SUPPLYOFCAPITAL §；1。Sofar，indiscussingthehuman\'costs\'ofproduction，wehaveconfinedourattentiontotheactivitiesofbodyandminddirectlyoperativeinproducingmarketablegoodsorservices，gradingthemfromthecreativeandgenerally\'costless\'workoftheartistandinventortotherepetitiveand\'costly\'workoftheroutinemanuallabourer。Wenowproceedtoexaminethehumancostsinvolvedintheprocessesofprovidingthecapitalwhichcooperateswithlabourinthevariousproductiveoperations。Theeconomic\'costs\'，forwhichpaymentismadeoutoftheproducttocapital，aretwo，risk-takingandsaving。Whatarethehumancostsinvolvedintheseeconomiccosts？ Toclearthegroundforthisenquiryitwillbewelltobeginbymakingplainthesenseinwhichrisk-takingandsavingare\'productive\'activities。 Neitherofthemis\'work\'intheordinaryorganicsenseoftheapplicationofmuscleornervousenergytotheproductionofwealth。Bothwouldratherbeconsideredasactivitiesofthehumanwillandjudgmentwhichincreasetheefficiencyofthedirectlyproductiveoperations。Theirproductivitymaythusberegardedasindirect。Butitisnonethelessrealandimportantonthataccount。Forunlesstherewaspostponementofsomeconsumptionwhichmighthavetakenplace，andtheapplicationofthenon-consumptivegoods，whichthispostponementenabledtocomeintoexistence，tousesinvolvingrisksofloss，\'work\'wouldbeveryunproductiveincomparisonwithwhatitis。 Risk-taking，thegivingupofapresentcertainutilityorsatisfactionforthechanceofalargerbutlesscertainsatisfactioninthefuture，is，weknow，theessenceofbusinessenterprise。Suchenterprisebynomeansalwaysentailsahumancost。Inindustry，asinallhumanfunctions，experiments，involvingrisk，arefrequentlyasourceofvitalinterestandofconscioussatisfaction。Therearetworootsofthissatisfaction，thestakingofone\'sjudgmentandskillinforecastinganddeterminingfutureevents，andtheactualjoyofhazard。Theformerisacommontraitofintelligentpersonality，thelatterapowerful，thoughlessgeneralmotive，involvinga\'sporting\'interestinlife。Thespiritofadventureappliedtobusiness，enhancestheconsciousvalues。Whetheritbemotivedbysomephysicalrestlessnessorbysomeelementoffaith，itmustbeaccountedanorganicgood，alikeasmeansandend。 Ifalltherisk-takinginvolvedincurrentindustrywereofthisnature，itwouldnotthenfigureinourbillofhumancosts，butontheothersideoftheaccount。Butwheretheconditionsofactualbusinessimposeelementsofriskthatareeitherinkindormagnitudecompulsory，notvoluntary，notonlydoesnosatisfactionattendthetakingoftheserisks，butconsiderablelossandsufferingmayaccrue。Risksthatareeithergreatinthemselvesorgreatinrelationtothecapacitytobearthemarefrequentlyrequiredbytheconditionsofmodernbusinessenterprise。Themenwhoundergotheserisksdonotdeliberatelyorwithexpressintentionstaketheirfaithandforesightonagameofgainorloss，orevenenterintotheriskswiththegambler\'szest。Theyundergotheserisksbecausetheycannothelpthemselves，andtheanxietyattendantontheserisksisoftenoneoftheheaviestpsychicalandphysicalcostsofthebusinessman。 §；2。Inanalysingrisk-takingasaspecialcostofcapital，Imustguardagainstonemisunderstanding。Risk-taking，ofbothsorts，humanlygoodandhumanlybad，isnotofcoursebyanymeansconfinedtoadministrationofcapital。Everyonewho，eitherbychoiceorbythenecessityofhissituation，devoteshispersonalenergiestomakinganyproductforthemarket，ortoimprovingsomepersonalcapacitywithaviewtoitsproductiveuse，incursrisks。Insomecasestherisksmaynotindeedentailrealhumanwaste，aswheretheartistorinventorspeculateswithhiscreativefaculty。 Ortheprofessionalman，preparingforhiscareer，maywillinglyandwithzestenteracompetitioninwhichprizesarefew。Menequippedwithvigorousintellectanddeterminationwillgetoutofthestruggleforprofessionalorcommercialsuccessasatisfactionofwhichtheriskoffailureisanecessarycondition。Butformostmenasmallquantumofhazardsuffices。 Alittleriskmaystimulatebutalargerriskwilldepressefficiency。 Adoctor，alawyer，anengineeriswillingtoputhisnaturalandacquiredabilityagainstthoseofhisfellowsinafairfieldwherethechancesofsuccessarereasonablylarge。Butwhentherisksaresonumerousandsoincalculableastheyareto-dayinmostprofessionalcareers，theanxietytheycausemustbeaccountedaheavyhumancost。Thesameappliestothecareerofmostmodernbusinessmen。Italsoconstitutesanewandgrowingcostoflabour。 Forthoughitmaybetruethattheactualrisksofaworkinglife，personaloreconomic，arenogreaterthaninformertimes，theemotionalandintellectualrealisationoftheserisksisgrowing。Educationenablesandcompelstheintelligentworkmantounderstandtheprecariousnatureofhislivelihood，andhisgrowingsensibilityaccumulatesin\'worry\'。 Thisiscertainlyoneofthemainsourcesof\'industrialunrest\'。 Butthoughrisk-takingthusentersasahumancostintothelifeofotherownersofproductivepowers，wedorighttoaccorditspecialattentioninrelationtothesupplyofcapital。Forintheprovisionofallformsofcapital，andinthepaymentforitsuse，risk-takingisanelementofprimaryimportance，and，thoughintheoryseparablefromtheactofabstinence，postponement，orwaiting，whichcomesintoprominenceasthedirectpsychicalcostofsaving，itisnotseparableinindustrialpractice。 §；3。Letusfirstexaminetheeconomiccostsinvolvedintheprovisionofindustrialcapital。Thatprocessconsistsinmaking，orcausingtobemade，non-consumablegoods，whichareusefulforassistingthefutureproductionofconsumablegoods，insteadofmaking，orcausingtobemade，directlyconsumablegoods。Weneednotdiscussatlengththeshallowcriticismpressedbysomesocialiststotheeffectthatsincelabourmakesallgoodswhethernon-consumableorconsumable，theonlyeconomicandhumancostofprovidingtheseformsofcapitalistheproductiveenergyoflabour。Forthedecisionandeffortofmindorwill，whichdeterminesthatnon-consumablesshallbemadeinsteadofconsumables，proceedsnotfromthelabouremployedinmakingthem，butfromtheownersofincomewhodecidetosaveinsteadofspending。Thisdecisiontosaveinsteadofspendingistheeconomicforcewhichcausessomuchoftheproductivepoweroflabourtooccupyitselfinmakingnon-consumables。Itisofthefirstimportancethattheordinarybusinessman，towhom\'saving\'isapttomeanputtingmoneyinabank，orbuyingshares，shallrealisetheconcretesignificanceofhisaction。 Whatheisreallydoingiscausingtobemadeandtobemaintainedsomeadditiontotheexistingfabricofmaterialinstrumentsforfurtheringthefutureproductionofcommodities。Thisisnot，asitmayatfirstappear，asingleactofchoice，thedeterminationtouseaportionofone\'sincome，say£；100，inpayingmentomakesteelrailsortoputupafactorychimney，insteadofpayingthemtomakeclothes，furniture，orwineforone\'scurrentconsumption。Theeffortofpostponement，orthepreferenceofuncertainfutureforcertainpresentconsumables，necessaryforsupplyingcapital，ifitisaneffort，isacontinuousonelastingallthetimethecapitalisinuse。Thecriticwhoasks，whyasingle\'actofabstinence\' whichispastanddonewithshouldberewardedbyaperpetualpaymentofannualinterest，failstorealisethat，sofarassavinginvolvesaserviceableactionofthesaver，itgoesonallthetimethatthesaverliesoutofthefullpresentenjoymentofhisproperty，i。e。，aslongashissavingscontinuetofunctionasproductiveinstruments。 Thisview，ofcourse，bynomeansbegsthequestionwhetherthereisofnecessityandalwayssomehumancostorsacrificeinvolvedinsuchaprocessofsaving。Itis，indeed，clearthatagooddealofcapitalmaybesuppliedwithoutanyhumancostseitherinpostponementofcurrentsatisfactionorinrisk-taking。Thesquirrelstoresnutsbyanorganicinstinctofeconomyagainstthewinter，asthebearstoresfat。Thethriftyhousewifelaysupprovisionsbyacalculationhardlylessinstinctiveagainsttheprobablerequirementsofthefamilyinthenearfuture。Thebalancingoffutureagainstpresentsatisfaction，involvedinsuchprocesses，cannotbeconsideredasinvolvinganyhumancost，butrathersomeslightbalanceofutility。 IamcertainlyinnosensetheloserinthatIdonotlayoutallmyincomethesamedaythatireceiveitinpurchasingimmediatesatisfaction。WhyIamnottheloserisevident。 Thefirst5percentofmyincomeIcanperhapsspendadvantageouslyatonceuponnecessariesandcomfortswhichcontributeimmediatelytomywelfare。ButifIknowthesumhasgottolastmeforsixmonths，itwillevidentlypaymeinorganicwelfaretospreadnearlyalltherestinaseriesofexpendituresoverthewholeperiod，sothatImayhavethesenecessariesandcomfortsallthetime。Ifmyincomeisnomorethanjustsufficienttokeepmeinfullhealth，i。e。，inprovidingvital\'necessaries\'，organicwelfaredemandsaquiteevenexpenditure，entailingtheproperquantityofpostponement。Ifthereisanythingoverforexpenditureonunnecessaries，thiswillnotbequiteevenlyspreadoverthesixmonths。Foranycomfortsitaffordsappeartobringmorepleasureifenjoyednowthaninthreeorsixmonths\'time。1And，besides，thereisthequestionofuncertaintyoflife，upontheonehand，andtheriskofbeingunabletogetboldofthefuturecomfortswhenImaywantthem。 Thisdepreciationoffutureascomparedwithpresentsatisfactionandtheseriskswillproperlyinducemetogradedownwardstheexpenditureoncomfortsduringtheperiodinquestion。Butinthislayingoutofmyincome，soastosecureformyselfthemaximumofsatisfactionandutility，2thereisnohumancostorsacrifice。Onthecontrary，anyfailureto\'save\'or\'postpone\'mightbeattendedbyaheavycost。Manyasavagehasdiedofstarvationbecausehehasgorgedtorepletioninsteadofstoringfoodtotidehimovertillhegetspossessionofanewsupply。Thusthissimplesteconomyofsaving，thespreadingofconsumptionoveraperiodoftime，isevidentlycostless。 §；4。Now，thoughthesavingwhichconsistsinkeepingstoresofconsumablesforfutureconsumptiondoesnotfurnishwhatwouldbecalledcapital，andsodoesnotcomedirectlywithinthescopeofourparticularenquiryinto\'costsofcapital，\'itgivesausefultestfortheeconomyofsavingundermoderncapitalism。Themodernsaverdoesnot，indeed，usuallykeepinhispossessionforfutureconsumptionastoreofconsumablegoods。 Itwouldbeinconvenienttostorethem，manyofthemarebynatureperishableandsoincapableofstorage。Besides，modernindustryaffordshimawayofmakingindustrialsocietystorethemforhim，or，morestrictly，makesitproduceaconstantsupplyoffreshconsumablestowhichhecangetaccess。 Nay，itprovidesstillbetterforhisneeds，foritenableshim，bypostponingsomepresentconsumptiontowhichheisentitled，notmerelytotakeoutoftheconstantsocialsupplythefullequivalentofhispostponedconsumptionatanytimehechooses，buttoreceiveanadditionalsmallregularclaimuponotherconsumptiveorproductivegoods，calledinterest。 Thisextrapaymentwasregardedbytheclassicaleconomistsasacostorpricepaidforaneffortofabstinence。Morerecenteconomistshaveusuallychosentosubstituteforabstinence\'waiting\'orsomeequallycolourlessterm。Butabstinenceisbetter，foritdoessuggestapainfuleffortinvolvingsomehumancost，someplayofmotivesnaturallyadversetosavingwhichrequirestobeovercomebyapositiveeconomicpayment。Thus，notmerelytheeconomic，butthemoralorhumannecessityofinterestisbestasserted。 Thisabstinenceorpostponementofpossiblepresentconsumptionofcommoditiesisadmittedlytheconditionoreventhecauseofthesupplyoftheproductiveinstrumentswhichincreasetheproductionoffuturewealthandincidentallyfurnishthefundoutofwhichtheinterestispaid。Forourpresentpurpose，then，itmakesnodifferencewhetherwelookattheprimitivesavingwhichstoredconsumablesforfutureuse，orthemodernsavingwhichcausesproductiveinstrumentstobecreated，appliedandmaintained。 Thequestionwhethertherearehumancostsofsaving，andwhattheyare，isinthelastresortthesameinbothcases。 Outofanyindividual，orsocial，incomeacertainamountorproportionofsavingevidentlymaybe\'costless\'inthehumansense。Thatistosay，thepersonorsocietythatsavesitsustainsnoorganiclossorinjurybydoingso，thoughhemaysometimesthinkorfeelhedoes。Ifhedoessothinkorfeel，societymustsetacounter-weightagainstthisfalseimaginaryloss，intheshapeofinterest。But，aswehavealreadynoted，thereisagooddealofsavingwhichrepresentsthecalculatedoutlayoveraperiodoftime，whichtheownerofanincomewillmakeinhisowninterest。 Insuchcasesthereisnohumancost，andifaneconomiccost(interest) isdefrayed，ithasnohumancorrelative。Fromthestandpointofhumandistributionofwealthitinvolvesawaste。 Theorganicutilitytoindividualsofhoarding，inorder，bydistributingconsumptionoveralongerperiodoftime，togetfromitalargeraggregateofgoods，willthusfurnishaconsiderablequantityofinstrumentalcapitaltomodernindustry。For，onlybyputtingthepostponedconsumptionintotheformofinstrumentalcapital，canthesaversestablishthelientheywantuponthefutureoutputofconsumables。Ifalltherequiredcapitalcouldbegotbythissimpleplayofmotives，thesaversbalancingmoreusefulfutureunitsofconsumptionagainstlessusefulpresentunits，withdueallowanceforrisksconnectedwithpostponement，thesupplyofcapitalwouldbehumanly\'costless。\'Thoughsomeelementofrisk，inherentintheproceeding，would，takenbyitself，carryacost，thesuperiorutilityattachingtothepostponedunitsofconsumption，ascomparedwiththatwhichthesamenumberofunitswouldaffordwhenaddedtotheconsumptionalreadyprovided，wouldoffsetthatcost，sothatthearrangement，asawhole，wouldbecostless。 §；5。Thoughthemethodofouranalysishasobligedustoapproachthisproblemofsavingaspartofourenquiryintoprocessesofproduction，becauseitisthemeansbywhichaproductivefactor，viz。capital，issupplied，itappertainsdirectlytotheprocessofconsumption，oroutlayofincomeonconsumables。Asthecurrentexpenditureofanymemberofindustrialsocietywillbedistributedamonganumberofdifferentpurchases，contributingbynatural，conventional，orpurelypersonalconnections，towardsastandardofconsumptionendowedwithmaximumutility(orwhattheconsumertakesforsuch)，sowillitbewiththedistributionofexpenditureoverpointsoftime。Letuselevateintoaclearconsciouspolicyofcalculationwhatisinlargemeasureablindinstinctiveconduct，andtheorganicrelationbetweenthetwo\'economies\'isapparent。Itinvolvesanintricatebalancingoflargerfutureutilities，weightedbyrisks，againstsmallerpresentutilitiesnotsoweighted。Totakethesimplestinstance。If，outofanincomeof£；600cominginthisyear，Idecidetoconsume£；500 inthecurrentexpenditureoftheyearandtoputaside£；100forconsumptioninfiveyears\'time(whenIpurposetoworkonlyhalf-timeandearnonlyhalfmypresentincome)，Ishallhaveestimatedthattheluxurieswhichicouldbuythisyearbythesixthhundredpoundsexpenditureareslightlylessagreeableor\'useful\'tomethanthecomfortspurchasablebythefourthhundredpoundsasvisualisedfiveyearsoff，withanallowanceforthechancethatimaythenbedead，orthatImayhavecomeintoalegacywhichrendersthispostponementofconsumptionunnecessary。 Inaword，thiseconomicegomustbeconceivedasoperatingbyaplanofoutlaywhich，inregardtothedisposalofthecurrentincome，hasalongitudeandlatitudeofsurveyandvaluation。Justasthedifferentingredientsofpresentconsumptionmakeacomplexorganicwholewithdelicatelyproportionedparts，thesizeandformofeachdictatedbytheunifiedconceptionofthecurrentstandardofcomfort，sothedispositionoftheincomeoveraseriesofpointsoftimeinwhichpresentvaluesofeachseveralconsumableandofthewholestandardarecomparedwithfuturevalues，involvesthesimilarapplicationofaplanfortherealisationofmyeconomicideal。 Thoughafullyrationalconceptionandcalculus，eitherforthecompositionofcurrentexpenditureorforprospectiveoutlays，isveryrare，somehalf-conscious，half-instinctivecalculusofthesortmustbeaccreditedtoeverybody。3 Sofarasitisrightlyconductedbytheirreasoningorjustinstinct，itmeansthat，outofallormostofthemembersofanindustrialsociety，somehumanlycostlesssavingcouldbegot，somecontributiontowardsthesociallydesirablefundofcapital。 §；6。As，then，wehaveseenthatacertainproportionofthevariouscurrentactivities，whicharedirectlyproductiveintheshapeofskilledandunskilledlabourofbrainandhand，areeitherhumanlycostlessorcarrysomepositivefundofhumanutility，soisitalsowiththeprocessesofsavingandrisk-taking，whichgotothesupplyandmaintenanceofcapital。 Itisnotdifficulttoconceiveasocietyinwhichallthesavingneededforthenormaldevelopmentofindustrymightbecostless。Inaprimitivesociety，basedchieflyonagricultureandsimplehandicrafts，onemightfindthebulkoftheworkingpopulationearningasecureandsufficientlivelihood，butwithnomarginofsavingsforinstrumentalcapital。Thecomparativelysmallamountofsuchcapitalaswasneededmightbefurnishedmainlyorentirelyfromthesurplusincomesofalandowningoragoverningclass，extractedasrentortaxes。 Ofcourse，if，aswouldcommonlyoccur，suchrentsortaxeswereextortedfromthepeasantrybystarvingthemorbyimposingaburdenofexcessivetoil，thehumancostsofsuchsavingwouldbeveryheavy。Butwhereaclassoffeudallordsdrewmoderaterentsandfinesfromtheirtenants，orwhereagoverningcaste，suchastheIncasinancientPeru，appliedtousefulpublicworksalargeshareofwhatwouldbecalledthe\'economicrent\'ofthecountry，takenintaxation，suchsavingneedentailnohumancost。Norissuchcostlessprovisionofcapitalnecessarilyconfinedtoasocietylivingundersimpleindustrialconditionsinwhichcomparativelylittlesavingcanbeutilised。Eveninanadvancedindustrialsocietythelargeincessantincrementsofcapitalmightbeprovidedcostlessly。 Forifthenationaldividendwerenotonlyverylargebutsowellorequablydistributed，asincome，thatallclasseshadmorethanenoughtosatisfytheircurrentorganicneeds，suchasocietywould，byavirtuallyautomaticeconomy，secretestoresofcapitaltomeetthefutureneedsofagrowingpopulationorarisingstandardofconsumption，aseveryanimalorganismnaturallylaysupstoresoffat，muscleandphysicalenergy，forfutureuse。 Awell-orderedsocialisticstate，weresuchpossible，wouldcertainlyapplytheindustrialforcesatitsdisposal，soastosecureanadequatesupplyofcostlesscapital。Aftermakingproperprovisionoutofcurrentindustryforthephysicalandmoralhealthofthewholepopulation，andfornormalprogressinpersonalefficiencyofworkandlife，itwouldapplythesurplusofindustrialenergytoimprovingthecapitalfabricofindustrysoastoprovidefortheproductionofincreasingwealth，leisure，andotheropportunitiesinthefuture。Thecalculation，astowhatproportionofcurrentindustrialenergyshouldbethusappliedtopreparingfutureeconomicgoodstoripenforutilityatvariousdistancesoftime，wouldofcoursebeadelicateoperation。Butsofarasitwerecorrectlycarriedout，itwouldbesociallycostless。 Foronthehypothesisthatadequateprovisionforcurrentneedsofindividualstabilityandprogresshadbeenafirstchargeontheindustrialdividend，thepostponementofanyadditionalconsumptioninvolvedinsocialsavingcouldnotrightlyberegardedasinvolvinganynethumancost。For，if，insteadofthesurplusbeingsaved，ithadbeenpaidouttoindividualmembersofsocietyforcurrentconsumption，itwouldexhypothesibeunproductiveoforganicwelfare，beingappliedinaninjuriousandwastefulattempttoforcethepaceofadvancesinthecurrentstandardofliving。Applyingtheorganicmetaphor，onewouldsaythatitwasanaturalfunctionofanorganisedsocietytosecretecapitalinduequantityforitsfuturelife。 §；7。Buthowfarcanitbeheldthatanindustrialsocietylikeoursissoorganisedas\'naturally\'tosecretethe\'right\'quantityofcapital，toprovideitinacostlessway，andtodistributeiteconomicallyamongitsvarioususes？Afullanswertothesequestionsmustbedeferreduntilouranalysisoftheconsumptionsideofthenationaldividendenablesustoassessthehumanutilityoftheproductiveworktowhichcapitalisapplied。Atpresentwemustassumetheutilityofthe£；300，000，000 ofsavingsappliedoutoftheaggregatenationalincometotheenlargementofindustry，andconfineourselvestoenquiringwhatproportionofthisamountislikelytobe\'costless\'andhowtoestimatethe\'humancosts\' attachedtotheotherpart。Itis，ofcourse，quiteevidentthatsuchanswerascanbegivenisofageneralandspeculativenature，withnopretenceatquantitativeexactitude。 Inconsideringsavingswithaneyetodiscoveringthehumancosts。 Itwillbewelltoclassifythesesavingsunderthreeheads。Firstwillcomewhatmaybetermedtheautomaticsavingofthesurplusincomeoftherich，thatwhich，remainingover，afterallwants，inclusiveofluxuries，aresatiated，accumulatesforinvestment。Theproportionofnewcapitalproceedingfromthissourcewillvarywiththeamountandregularityofsuchincome，itsdistributionamongtherich，andtheirattitudeofmindtowardstheexpenditureoftheirincomes。Theautomaticorspontaneouscharacterofthissavingisduetothefactthatnocloserelationexistsbetweenprogressinindustryandtheevolutionofapersonalstandardofconsumption。 Suddenrapidadvancesofincomearenotusuallyaccompaniedbyacorrespondingpressureofnewpersonalwantstendingimmediatelytoabsorbinincreasingexpenditureeachincreaseofincome。Thoughnolimitcanbesetupontheexpensesofaluxuriousstandardofconsumptionandthevagariesofpersonalextravagance，expensivehabitstaketimefortheirestablishment，andinaprogressiveindustrialsocietywhereskilful，orlucky，businessmenaremakingfortunesrapidly，theiracquisitivepowerwillbeapttorunfaraheadoftheirconsumptivepractice。Moreover，theabsorptioninthepracticeofmakingmoneyevidentlyretardsthefullacquisitionofhabitsoflavishexpenditure，givingfullscopetothedevelopmentneitheroftastesnorofopportunities。Thiswillbeparticularlytrueofincomesgrowingnotbyregularincrementsbutbysuddenrushes。ExtremeinstancesaboundintherecenthistoryofAmerica。Wherethequickskilfulseizureofnewsuddenopportunities，conjoinedwithageneraldevelopmentofnationalresourcesatanabnormallyrapidpace，enablesaJayGouldoraJohnD。 Rockefellertoamassmillionswithinafewyears，awidenaturaldivergenceiscreatedbetweenincomeandexpenditure。Enormousmassesofunspentincomethusrollupintocapitalwhichagaincontinuallygrowsbytheaccumulationoftheunspentinterestitearns。Thoughthenumberofpersonsinthispositionoffinancialmagnitudeisveryfew，aconsiderableclassofsuccessfulbusinessmeninAmericaandineveryadvancedEuropeancountrycomesintothesamecategoryasregardscapacityofsaving。Whiletheirpersonalandfamilyexpendituremaybecontinuallyrising，itwilltendtokeepinsafeadjustmenttowhatmaybetermedaconservativeestimateoftheirincome。 Theoccasionalgreattradingcoups，theenormousprofitsofacommercialorfinancialboom，willnoteventendtobeassimilatedinexpenditure。 Wherevertheeconomiccircumstancesofacountryaresuchastothrowalargeproportionofthegrowingwealthintothehandsofaclassofbusyrisingmen，byaseriesofgreatwindfallsormoreorlessincalculableincrements，thenewcapitalflowingfromthesesuperfluousincomeswillbelarge。Moreover，sofarasitisautomatic，itwillhavelittleifanyregardtorateofinterest，andthusto\'socialdemand\'，sofarasinterestcanbeconsideredajustindexofsocialdemand。4 Evenwhentheelementoffluctuatingorfortuitousincreaseofincomeisnotpresent，afairlyrapidadvanceofincome，particularlywhereitis\'earned\'andthereforecarriesnopresumptionofindefinitecontinuance，willordinarilyleaveaconsiderablemarginofautomaticsaving。 Thiswillbelargerwherethestandardoflivingisalreadyestablishedonahighlevel。Forthoughcertaincuriouspsychologicaltraitsseemtoshowanextraordinaryconcentrationofpersonalinterestintheextravaganceswhichgivepersonaldistinctionin\'society\'，thelowpressureoforganicutility，ortheemergenceofpositivedisutilityinherentinmanyoftheseformsofluxury，mustbeconsideredtoexercisesomecheck。Puttingthemattersimply，onewouldsaythatrealprimaryhumanneedsaremorereadilyassimilatedinastandardofconsumptionthanpurelyconventionalorpositivelyinjuriousmodesofexpenditure。So，makingeveryallowanceforthedepravityoftastesandthezestforcompetitiveextravagance，itwillremaintruethattheclasseswithlargeincomeswilltendtocontributetocapitalalargeamountofsurplusincomebyaprocessofautomaticaccumulation。 Forsuchsavingthereisneitheraneconomicnorahumancostinvolved: theinterestitreceivesisintheeconomicsenseasmucha\'surplus\'astherentofland。Notmerelyistherenohumancost，thereisapositivehumanutilityinsuchsaving，foritisaninstinctiverejectionoftheinjuriousefforttoincorporatethissurplusinacurrentexpenditurealreadyadequatetosatisfyallfeltwants，goodorbad。 ItislikelythatalargeandagrowingproportionofthetotalvolumeofsavinginEnglandandintheWesternworldisofthisorder。Forthoughitmaynotbegenerallytruethatthericharegrowingricherandthepoorpoorer，itisprobablytruethatbothalargerquantityandalargerproportionofthenationalincomeareinthehandsofrichandwell-to-dobusinessmenwhosemeanshavebeenadvanCingfasterthantheirexpenditure。 §；8。Somuchfortheautomaticsavingoftherich。Wehavenexttotakeintoaccounttheadmittedlylargecontributionoftheclasseswhoinrespectofincomeare\'middle\'。Thiscomprisesthegreatmajorityoffamiliesengagedinthedirectiveworkofmanufactureandcommerce，andalmostthewholeoftheuppergradesoftheprofessionalandofficialclassesinsuchacountryasours，aswellasaconsiderablenumberofpersonsofmoderate\'independent\'means。Acertainamountofconscious\'thrift\'