第5章

istraditionalintheseclasses。Itisbynomeansautomatic，butinvolvesforthemostpartsomeconscioussacrificeofcurrentsatisfactioninfavourofagreaterestimatedfuturesatisfactiontothesaverorhisfamily。 Themotiveswhichinfluencesuchsaving，alikeinitsamountanditsapplicationascapital，arecomplexandvarious。Butthesacrificeascribedtosuchsavingcannotbeassumedtoinvolveanyeconomiccost，inthesensethatitrequiresthepaymentofeconomicinteresttoevokeit。Stilllesscanitbeassumedtoinvolveahumancost。Agooddealofthismiddle-classsaving，thoughlessautomaticthanthesavingsoftherich，isacalculatedpostponementofsomeexpenditurewhichmightpurchasepresentcomfortsorluxuries，inordertomakeprovisionforthepurchaseofnecessariesorconveniencesatsomefuturetime。Inaword，itisofthenatureofthe\'stocking\'saving，whichthebetter-to-dopeasantshavealwayspractisedbeforetheopportunitiesofprofitableandfairlysafeinvestmentwereopentothem。Thoughutilisedtoearninterest，thesavingwouldbemadejustthesameifnoobjectiveinterestwereattainable，provideditweretolerablysecureagainstpillageordestruction。Riskcountsformorethaninterestinsuchsaving，andthebulkoftheso-calledinterestwhichsuchsavingsdemand，asaconditionofloanorinvestment，isnottrueinterestbutinsurance。 Butinpracticeinseparablefromsuchsavingisthatundertakenwiththedirectobjectofearninginterestuponthecapital。Agreatdealofmiddle-classsaving，andsomesavingoftherichclasswouldnottakeplacewithoutthehopeofreceivinginterest。Ifnointerestwereattainable，thoughsomesavingmighttakeplace，inordertoprovideagainstthepossibilityofatotalcollapseofcurrentearningpowerandaconsequentdeprivationofthenecessariesoflife，therewouldbelittledispositiontogiveupanypresentfreeexpenditureoncomfortsinordertoprovideforfuturecomfortswhichmightnotbewanted，orwhich，inconsequenceoflossofsavings，mightnotbeprocurable。 Apositivebonusintheshapeofinterestseemsnecessarytoevokethislattersaving。Theoperationofthisbonusasaninducementis，however，verycomplex。Itmightappearatfirstsightobviousthat，thelargerthebonusintheshapeofrateofinterest，thegreatertheaggregateofsavingitwouldevoke。Sofarasnon-automaticsavingismotivedbyageneraldesiretobebetteroffinthefuture，inordertoattainastandardofconsumptionandofsocialconsiderationwhichdenotesuccessandsatisfypersonalambition，orinordertobequeathalargeestatetoone\'sfamily，higherinterestwilltendtoevokeacorrespondingincreaseofsavinginthosewhosecurrentincomesenablethemtosaveconsiderablesumswithoutencroachingupontheirestablishedstandardofcomfort。Youngormiddle-agedmen，ofanaspiringnatureandwithrisingincomes，willundoubtedlysavemoreiftheyseeahandsomereturnontheirinvestments。 But，asmostmenwillrealisemoreclearlyandfeelmorekeenlythesefutureeconomicandsocialgainsifthefullfruitsofsuchsavingswillbereapedbythemselves，notbytheirheirs，ageingmenwillbelikelytorespondlessfreelytothismotive。Presentcomfort，security，andpower，willmeanmoretothemthanafutureliberalityoflivingwhichtheycanonlyhopetoenjoyforafewyears，ifatall。Theamount，therefore，oftheaccelerationofsavingachievedbyariseofinterestwilldependagooddealupontherelativeimportancethisgeneraldesiretobebetteroffpossessesasaninducementtosave。Thatrelativeimportanceagainwilldependagooddealuponwhethertheeconomicandsocialconditionsofthecommunityplaceconsiderablenumbersofyoungerbusinessorprofessionalmeninapositionofrisingincomesandofconsiderablesavingpower，or，onthecontrary，confinesuchsurpluseschieflytooldermen。 If，insteadoftakingasourmotiveageneraldesiretobebetteroff，wetakeadesiretosaveinordertomakesomelimitedspecificprovision，asforexampletobuyanannuityof£；100，theeffectofahigherrateofinterestuponvolumeofsavingislikelytobedifferent。Thoughitmayservetoquickeninsomedegreethepaceatwhichthesumrequiredwillbeamassed，itwillreducetheabsoluteamountofsaving。Forwheninterestishigher，thecapitalsumrequiredtoyieldanannuityof£；100 ayearwillbelessthanbefore。Againstthis，however，mustbesetthefactthat，whenadefinitesumisneededinordertopayoffsomedebt，ortofurnishasufficiencyforretirement，ahighrateofinterestmayberequiredinordertomakethissavingpossibleorcertain。Ifamancannotsaveenoughtoattainsuchdefiniteobject，hewillnotsaveatall，foraninsufficientamountwillbeheldfutile；whereas，ifariseofinterestgiveshimagoodprospectofsavingtherequiredamount，hewillputforththeeffort。 §；9。Butmakingdueallowanceforcounteractingmotives，itistolerablycertainthatariseofinterest，showinganysignsofcontinuance，willstimulateanincreaseof\'motived\'saving，thoughbynomeansaproportionateincrease。Thusitwillappearthat，sofarasthislargesectionofmiddle-classsavingisconcerned，somedefinitemeasurableeconomiccosts，inthesenseofdeprivationofcurrentconsumption，areinvolved，requiringcompensationintheshapeofinterest。Butthequestionwhichconcernsusiswhethertherearehumancostscorrespondingtoandinvolvedintheseeconomiccosts。 Inansweringthisquestion，itisnotenoughtopointtotheadmittedfactthatthissavinginvolvesthefailuretosatisfysomecurrentdesireforincreasedconsumption。Ithastobeconsideredwhetherthesacrificeofcurrent\'satisfaction\'isreallyasacrificeofwelfare，eitherfromthestandpointofthesaver，orofthesocietyofwhichheisamember。Forwehavenottakentheviewthatthepersonaltransientdesiresandvaluationsofconsumersareafinalcriterion，eitherofpersonalorsocialwelfare。 Ifthenthesavingevokedbypayinginterestmerelymeansthatcertainfairlywell-to-dofolksabstainfromcomfortsorluxuries，which，thoughagreeableandinnocent，carrynoorganicbenefit，thereisnohumancost，orevenifthereissomeslightcost，itmaybeoffsetbytheindividualorsocialbenefitresultingfromthepostponementofconsumption。Alargeproportionofmotivedmiddle-classsavingundoubtedlyfallswithinthiscategory。Butbynomeansall。Agooddealoflowermiddle-classsavingeatsintocertainfactorsofhumanlyserviceableexpenditure，particularlyexpenditureineducationoftheyoung。Frequentlyitinjuresthefreelifeofthehomebytheconstantpressureofnigglingeconomies，which，thoughnotperhapsinjuriousintheparticularprivationstheyimpose，leavenomarginforthesmallpleasuresandamenitieswhichhaveavitalvalue。 Eventhoughweassumethatsuchsavingbrings，intheownershipofpropertyandtheinterestityields，afullvitalcompensationtotheindividualwhosaves，itbynomeansfollowsthatitissociallyjustified，whenatruecriterionofsocialwelfareisapplied。Takeforinstancethesavingwhichisdivertedfromexpenditureoneducation，precludingthechildrenfromgettingauniversityorprofessionaltrainingandturningthemontheworldtoearnaliving，lesseffectivelyequippedthantheymighthavebeen。Societymaybeaheavyloserbyitspolicyofevokingsuchthriftbymeansofinterest，foritobtainsacertainamountofmaterialcapitalinplaceofthemorevaluableintellectualormoralcapitalwhichthemoney，expendeduponeducation，mighthaveyielded。Evenregardedfromthestandpointoffutureeconomicproductivity，thestimulationofthissortofsavingislikelytobeinjurious。 §；10。Fargraverimportanceattachestothisconsiderationwhenweapproachthesavingsoftheworking-classes。Thecontributionmadefromthissourcetotheflowoffreshcapital，the£；300，000，000perannum，isevidentlyattendedbyheavyhumancosts。Verylittleofitcanberegardedastheconsideredreasonableoutlayoveralongperiodoftimeofincomenotneededforcurrentorganicallyusefulconsumption。Mostofitinvolvesastintingoftheprimenecessariesorconveniencesoflife，orofsomeriseinpresentexpenditurewhichwouldpromote Thehealthorefficiencyofthefamily。Almosttheonlysavingmadebyordinarywage-earnersnotattendedbythishumansacrificeisthatappliedbyyoungworkers，whohavingonlythemselvestokeep，canaffordtosetasidesomeportionoftheirpayinfullemploymentsoastofurnishafuturehome，andtoinsureagainstafewspecialemergenciesinvolvinglossofearningpowerorexpensesconnectedwithdeathorsickness。Evensuchpersonallyserviceableinsurancesthemarriedworkercanseldomproperlyafford。Thoughthenarrowerviewoftheeconomyofaself-sufficingfamilymayappeartojustifysavingsmadeoutofawagetheentirepresentexpenditureofwhichcanbeappliedtopurposesoforganicallyusefulconsumption，thewidersocialstandpointdoesnotendorsethispolicy。Foraworkmantopinchonhousing，clothing，theeducationofhischildren，oruponwholesomerecreation，inordertoavoidworsepinchinginsomeunforeseenbutprobableemergency，maybesoundindividualeconomy。But，unlesssocietyisunablefromotherresourcesatitsdisposaltoprovideagainsttheseemergenciesofworking-classlife，itisanunsoundsocialeconomy，involvingaheavynetcostofsocialwelfare。 Theissueisaveryvitalone。Itmaybestatedinthisconcreteform。 Mostofthesavingseffectedinthiscountryoutofafamilyincomeof30/orlessperweek，andmuchofthesavingsmadeoutofalargerincomewhentheworker\'sfamilyisyoung，involveasortofabstinencewhichisfraughtwithheavynetcostsinthesocialeconomy。Nopartoftheeconomicallynecessaryfundofannualcapitaloughttobedrawnfromthissortofsaving。 Itisliterallyacoiningofhumanlifeintoinstrumentalcapital，andthedegradationoftheterm\'thrift\'initsapplicationtosuchsavingisadamningcommentaryuponthefalsestandardofsocialvaluationwhichendorsesandapprovesthesacrifice。Thegreatrisksoflosswhichactuallyattendsuchsaving，andtheheavyexpensesofthemachineryofitscollectionandadministration，aggravatethewaste。Ifweascribe£；50，000，0005 outofthe£；300，000，000tothisclassofsavings，apropersocialbook-keepingwouldputthehumancostsofthisworking-classabstinenceasalargeoffsettothenetutilityoftheother£；250，000，000。Theforethought，endurance，andotherrealorsupposedbenefitstothecharacteroftheworkersimputedtothis\'thrift\'cannomoreberegardedasacompensationforsuchsocialinjury，thancanthedisciplineandfortitudeofsoldiersberegardedasatestimonytothenethumaneconomyofwar。 NOTES: 1。Observethatthisappearanceisillusory。Themaximumoforganicutilitywouldprobablyinvolveanevenexpenditureofalltheelementsofincomewithoutallowanceformypreferenceofpresentoverfuture。 2。Itmaybeurgedthat，eveninrespectofnecessaries，therewillbesomediscountforfutureascomparedwithpresentconsumption。Butinanyclassofcivilisedmen，whoseincomeispaidatlongintervals，thisdiscountwillbeverysmallandmaybeignored。 3。ForadiscussionofthenatureandlimitationsofthiscalculusseeChapterXXI。 4。\'Soingrainedisthehabitofaccumulationamongtheprosperousclassesofmodernsociety，thatitseemstoproceedirrespectiveoftherateofinterest。\'Taussig，PrinciplesofEconomics，Vol。II，p。 27。 5。Thisismostlikelyagravelyexcessiveestimate。Probably£；30，000，000 or1/10ofthenationalsavingwouldbenearerthemark。Moreover，alargeproportionofworking-classsavingsisnotdestinedtopurposesofpermanentinvestmentbuttoprovisionforsomeearlyprobableemergency，e。g。，burialorunemploymentwhichwillcancelthesaving。Thereexistnoapproximatelyreliableestimatesoftheamountofcapitalbelongingtotheworking-classes。 TheusuallyacceptedfigureincludesundertheheadofPostOfficeSavingsBankandBuildingSocietiesalargebutunknownquantityofmiddle-classsavings。CHAPTERIX:HUMANUTILITYOF CONSUMPTION §；1。Whenweturntotheothersideoftheaccount，thehumanutilitywhichthis£；2，000，000，000ofgoodsandservicesrepresents，weenteracountrywhich，aswehavealreadyrecognised，PoliticalEconomyhashardlybeguntoexplore。Forthoughthetrendofalargemodernschoolofeconomistshasbeentofindinconsumptionthevismotrixofalleconomicprocesses，andtobringclosestudytobearuponthepressureofconsumers\'wantsastheyoperatethroughdemandinthemarketsofcommodities，thisvoltefaceinthetheoryofvaluesdoesnotrendermuchassistancetoourhumanvaluation。Fortheiranalysisofdemandsdoesnothelpustointerpretexpenditureintermsofhumanutility。Asaninstrumentforsuchapurposeitisdoublydefective。For，inthefirstplace，itisconcernedentirelywiththeactualfeltwantsandpreferenceswhichinfactdeterminepurchases。 Inthesecondplace，ittakesforgrantedtheexistingdistributionofincomesorconsumingpower，tracingtheoperationofthispowerofdemandupontheactualeconomyofeconomicprocesses。Nowtheselimitations，quitenecessaryforthepurelyeconomicinterpretation，arenotsuitedtoourrequirements。 Thecurrentstandardofvaluationsandofchoicecannotbetakenasanadequatestandardofindividualorsocialwelfare。Feltwants，anddemandsbasedonthem，formnodoubtsomeindexofwelfare，butaninsufficientone。 Aconsiderableproportionofthegoodsandservicesincludedintherealincomewhichweareanalysingmustfromourstandpointbeclassednotaswealth，butas\'illth\'，toadoptRuskin\'sterm。Whatproportionweshouldplaceinthecategorywillofcoursedependuponthedegreetowhichweholdthattheactualevolutionoftheartsofconsumptionhasbeendistortedfromits\'natural\'course。Buteveryonewilladmitthatmanysortsofmarketablegoodsandservicesareinjuriousaliketotheindividualswhoconsumethemandtosociety。 Alargeproportionofthestimulantsanddrugswhichabsorbagrowingshareofincomeinmanycivilisedcommunities，badliterature，artandrecreations，theservicesofprostitutesandflunkeys，areconspicuousinstances。Notmerelydoesnohumanutilitycorrespondtotheeconomicutilityascribedtosuchgoods，butthereisalargepositivedisutility。Theaggregatehumanvalueofagrowingnationalincomemayeasilybereducedbyanyincreaseintheproportionofexpenditureuponsuchclassesofgoods，andtendenciesofdistributionwhichleadtosuchproportionateincreasemayeveninvalidatetheassumptionthatsocialwelfareuponthewholegrowswiththegrowthofthenationaldividend。 Weshallpresentlyconsidersomeofthefactorsinoursocialstructurewhichbringaboutthedevelopmentofdefinitelybaddemandsandbadproductstosatisfythem。 Butjustaswemustwritetothedebitsideofourhumanaccountagreatmanyarticleswhichfigureonthecreditsideinordinaryeconomicbook-keeping，soweshallbecompelledtorevisethecomparativevaluesattachedtothosearticleswhichcontainactualpowersofhumanutility。 Avaluationwhichsetsanequalvalueuponeachpartofasupplybecauseitsellsforthesamesumcannotservethepurposesofahumanvaluation。 Fortheamountofhumanutility，individualorsocial，attachingtotheconsumptionofanystockofgoodsorservices，mustevidentlydependinlargedegreeuponwhogetsthemandhowmucheachconsumergets，thatistosayupontheirdistribution。Thesamegoodsfigureasnecessariesoflifeoraswasteaccordingtowhogetsthem。Somequartersofthesamewheatsupplyfurnishlifeandworkingenergytolabourers，otherquarterspassunconsumedintothedustbinsoftherich。 Thereis，moreover，athirdconsiderationwhichcountsintheprocessofconvertingeconomicintohumanvalues。Asinthedistributionofproductiveenergyhumaneconomyrequiresanadjustmenttotheindividualcapacityofproduction，sointhedistributionofconsumptiveutilitiesacorrespondingregardmustbepaidtothenaturaloracquiredcapacityoftheindividualconsumer。Somepersonshavegreaternaturalcapacitythanothersfortheuseorenjoymentofcertainclassesofgoods，materialorimmaterial。Anabsolutelyequaldistributionofbread，oranyothernecessityoflife，onapercaputbasis，wouldevidentlybeawastefuleconomy。Whatappliestotheprimephysicalwantswillapplymorelargelytothegoodswhichsupply\'higher\'wants。For，asoneascendsfromthepurelyanimaltothespiritualwants，thedivergencesincapacityofutilisationwillgrow。 Thisdoesnotnecessarilyimplyverywidedifferencesintheaggregatequantityofwealthwhichcanbeusefullyconsumedbydifferentpersons，becausedeficienciesinsometastesorcapacitiesmaybecompensatedbydevelopmentofothers。Moreover，thewidestpersonaldifferenceswillusuallylieoutsidetherangeofeconomicsatisfaction。Yetevenamongeconomicconsumerstherewillbeconsiderabledifferencesintheamountoforganicserviceorsatisfactionthatdifferentpersonscangetoutofthesameamountofgoods。Anobleworkofart，asRuskininsisted，hasnovalueforprimitivepeasantswithoutcultivatedtastes。Thefinestlibraryofseriousliteraturehaslittlevalueto-dayinanordinaryEnglishindustrialtown。 Butitisneedlesstomultiplyexamplestoillustratethetruththatthevitalvaluegotfromanystockofconsumablewealthmustdependuponthecapacityofthoseintowhosehandsitpassestomakeagooduseofit。Inotherwords，itdependsuponhowfartheconsumerhasacquiredtheartofconsumption。Noristhismerelyaquestionofdevelopingandcultivatingsoundtastesinaclassorapeople。Itisoftenamatterofknowledgehowtoextractandutilisetheutilitywhichgoodscontain。Itissometimespointedoutthatover90percentoftheheatingpowerofcoalburnedindomesticfiresiswasted。Improvedgrates，orthesubstitutionofsomecentralheatingsystem，mightstopaconsiderableportionofthiswaste，securinganincreaseofheatingpowerandofitsvitalvalueoutofeachtonburned。 §；2。Untilweknowthen\'Whataretheconcretegoodsrepresentedbythe£；2，000，000，000income？Howaretheyapportionedamongdifferentclassesoftheconsumingpublic？Howfararethosewhogetthesegoodsqualifiedtogetthevitalvalueoutofthem？\'wecannotcompute，eveningeneralterms，theaggregatehumanutilitytheycarry。 Ourcalculusofthehumanutilityofconsumptionwillthusinformandmethodcloselycorrespondwithourcalculusofthehumancostofproduction。 Takingasthesubject-matterofouranalysisthegoodsandservicesconstitutingtherealincomeofthenation，ouranalysisofproductionendeavouredtoapplytwocriteria，onerelatingtotheArtsofProductionactuallyemployed，theothertotheDistributionoftheproductiveeffortsinvolvedintheemploymentofthesearts。Similarly，ouranalysisofconsumptionrestsupontheapplicationoflikecriteriatotheArtsofConsumptionandtheDistributionofconsumingpower。 Intheproductiveanalysis，considerationsofthemethodsofindustry，inrelationtothequantityofcreativeandimitative，interestingandrepellentwork，theuseofmachineryandsubdividedlabour，theelementsofforethought，risk-taking，andorganisation，lengthofthework-day，regularityofemployment，apportionmentofroutineindustryamongthegradesandclassesofproducers，arefoundtobethemaindeterminantsofthesumofhumancosts。 Asimilaranalysis，appliedtotheconsiderationofthestandardsandmethodsofconsumptionprevailingamongthedifferentgradesandclassesofconsumers，andtothedistributionofconsumingpoweramongtheseclassesastoamountandregularity，willyieldasumofhumanutility。 Butinapproachingtheartsofconsumption，wefindtheyhavenotdevelopedinthesamewayastheartsofproduction。 Startingfromprimitivesocietywiththepracticallyself-sufficingfamilygroup，whereeverybodytookahandinthedifferentsortsofworkandashareintheconsumptionofthedifferentproducts，wefindourselvescarriedalongacareerofcontinualdifferentiationoflabournotattendedbyanycorrespondingdifferentiationofconsumption。 Industrypassesintolargecooperativeformsoutsidethesinglefamily，withconstantlyfinerdivisionoflabour。Butconsumptionisstillchieflycarriedonwithinthelimitofthesinglefamily，1and，sofarfrombeingspecialised，itbecomesmoregeneralised。Thiscontrastofmanasproducerandconsumerisofthefirstimportance。Modernindustrialevolutionshowsamanbecomingnarrowerandmorespecialisedonhisproducingside，widerandmorevariousonhisconsumingside。Asworker，heisconfinedtotheconstantrepetitionofsomesectionofaprocessintheproductionofasingleclassofarticle。 Asconsumer，heisindirectcontactwiththousandsofdifferentsortsofworkersinallpartsoftheworld，andbyhisvariousconsumptionappliesadirectstimuluswhichvibratesthroughthewholeindustrialsystem。Asproducerheis\'theone\'，asconsumer\'themany\'。 Thisdivergingtendencyintheeconomicevolutionofmanhasimportanthumanimplicationswhichwillconcernuslater。Atpresentitconcernsusinitsbearingupontheartsofconsumption。 §；3。ThegreatcomplexunitofproductiveactivitieswhichengagedourattentionwastheBusiness。Productiveeconomy，theamountofhumancostinvolvedintheproductionofagivenquantityofgoods，depended，aswesaw，uponthestructureandworkingofthisBusiness。WhatistheconsumptiveunitthatcorrespondstotheBusiness？ItistheFamily，orHome，regardedonitseconomicside。ThereisaneconomyofconsumptioninthefamilystandardoflifeasimportantforsocialwelfareastheeconomyofproductionintheBusiness。AstheformerstandstowardscostsofProduction，sotheotherstandstowardsutilityofConsumption。AstheeconomyofProductionchieflyconsistsinminimisingcost，sotheeconomyofConsumptionshouldconsistinmaximisingutility。Butthestandardofconsumptionhasinmoderntimesnotbeensubjectedtothesameforcesashaveoperateduponproduction。 Thoughinthebeginning，aswesaw，bothwerenatural，organicandrelatedprocesses，themodernrationalisationofindustryhasnotbeenaccompaniedbyacorrespondingrationalisationofconsumption。Inventorsandtransformersofindustryhavenothadtheircounterpartinconsumption。Ahundredtimesthequantityofthoughtandefforthasgoneintotherecentevolutionofasingleindustry，suchascottonorchemicals，thathasgoneintotheimprovementofconsumption。Itisnotdifficulttounderstandthereasonsofthegreatconservatismoftheconsumptivearts。Inprimitivesocieties，whereeachfamilyisaself-sufficingeconomicunit，orwheredivisionoflabourisonthesimplestlines，theindustrialartsarealmostasconservativeasthemethodsofconsumption。Theadoptionofanewwayofworkingisnearlyasdifficultastheadoptionofanewwant。Customrulesbothwithanalmostequalsway，thoughevenatthisstageitsholdupontheorganicfeelingswillbesomewhatstrongerontheconsumingside，especiallyinmattersoffoodandoffamilyortribalritual。 Itwillbealittleeasiertouseanewsortofsnare，ortochangetheshapeofapotorbasket，thantotaketoanewheadgearoranewwayofcookingmeat。Butwhentheindustrialartshaveadvancedacertainway，twoforcescombinetobreakthebondofcustomandtoencourageexperimentsandimprovedmethods。Whileconsumptioncontinuestobecarriedoninanumberofsimpleactionsinvolvingnoconsiderableeffortorconsciousattention，industryhaspassedintoarelatedseriesofprocessesofconsiderabledurationandinvolvingmanyseparateactsofconsciouseffortandattention。Theproductionofanarticlewillthuspresentafarlargernumberofopportunitiesforchangethanitsconsumption，andtherewillbeagreaterlikelihoodthatadvantageouschangeswillbetriedandadopted。Anewideaofsavinglabour，thechancediscoveryofsomenewmaterial，willbeapprovedmorereadilythananysuggestionforsomenewfoodoranunaccustomedarticleofclothing。For，intheformercase，thereasoningfacultyisofnecessityaliveandoperativetosomedegree，andthegainofthechangecanberealisedexperimentally，whileinthelattercase，thereasoningfacultyishardlyawake，andanynoveltyofconsumptionisapttohaveaninitialbarrierofnaturalaversiontoovercome。 Butthereisanotherreasonfortheeasierprogressoftheproductivecosts。Inproportionasworkpassesintotheshapeofanorganisedbusiness，administeredbyanemployerforprofit，thecontrolofanyofitsprocessesbyprimitivecustomortabootendstodisappear。Fortherationalisminvolvedintheprofitableconductofthebusinesscompelstheemployertobreakanytraditionalbarriersobstructingtheadoptionofprofitablereforms。 Thoughtherearedoubtlessmanyreformsoftheconsumptiveartsashumanlyeconomicalandprofitableasanyofthegreatindustrialreforms，thereisnotthesameconcentratedmotiveoflargeimmediatelyrealisedgainstourgetheirclaimsonanybodyofconsumers。Notonlyarethegainsfromanimprovementinproductionmoreimmediate，moreconcreteandmoreimpressive，buttherisksandinconveniencesofthechangearelargelybornebyothersthanthereformer，viz。，hisemployees，orhisshareholders。Theconsumer，ontheotherhand，hashimselftobearallrisksandinconveniencesinvolvedintheabandonmentofanoldarticleormethodofconsumption，ortheadoptionofanewone。Finally，itmustberememberedthattheactualrisksattendinganinnovationaregreaterfortheconsumer。Forthemodernproducerisaskilledspecialistintheparticularartofproductioninwhichheisengaged，theconsumerisanunskilledamateurinamoregeneralart，possessinglittleknowledgeandnoeffectivepoweroforganisingforhisself-defence。 §；4。Thefactthatthemonetaryprofitofproducersistheprincipaldeterminantofmostchangesinthenatureofconsumablesandthestandardsofconsumptionisoneofthemostserioussourcesofdangerintheevolutionofahealthysocialeconomy。Thepresentexcessivecontrolbytheproducerinjuresanddistortstheartofconsumptioninthreeways。1。Itimposes，maintainsandfostersdefinitelyinjuriousformsofconsumption，thearticlesof\'illth\'。2。Itdegradesordiminishesbyadulteration，orbythesubstituteofinferiormaterialsorworkmanship，theutilityofmanyarticlesofconsumptionusedtosatisfyagenuineneed。3。Itstimulatesthesatisfactionofsomehumanwantsanddepressesthesatisfactionofothers，nOtaccordingtotheirtrueutility，butaccordingtothemoreorlessprofitablecharacteroftheseveraltradeswhichsupplythesewants。 Theprevalenceofmanyofthemostcostlysocialevilsofourtime，war，drink，gambling，prostitution，overcrowding，islargelyattributabletothefactthattheirmaterialortradeappliancesaresourcesofgreatprivateprofit。Suchtradesarethegreatenemiesofprogressintheartoflife，andtherescueoftheconsumingpublicfromtheirgripisoneoftheweightiestproblemsofourtime。Twomethodsofdefencearesuggested。 Oneistheeducationandcooperationofconsumers。Butwhileeducationmaydomuchtochecktheconsumptionofcertainclassesof\'illth\'，itcanhardlyenabletheconsumertocopewiththesuperiorskillofthespecialistproducerbydefeatingtheartsofadulterationanddeteriorationwhicharesoprofitable。Consumers\'Leaguescanperhapsdosomethingtocheckadulterationandsweating，bytheemploymentofskilledagents。Butitwillremainverydifficultforanysuchprivateactiontodefeattheever-changingdevicesofthelessscrupulousfirmsinprofitabletrades。Therecognitionofthesedefectsofprivateactioncausesanincreaseddemandforpublicprotection，bymeansoflegislativeandadministrativeactsofprohibitionandinspection。ThestruggleoftheStatetostampoutortoregulatethetradeswhichsupplyinjuriousoradulteratedfoods，drinks，anddrugs，tostopgambling，prostitution，insanitaryhousing，andotherdefinitelyviciousbusinesses，isoneofthegreatestofmodernsocialexperiments。 Thoughtheprotectionoftheconsumerisinmanycasesjoinedwithotherconsiderationsofpublicorder，itistheinherentweaknessoftheconsumer，whenconfrontedbytheresourcesofanorganisedgroupofproducers，thatistheprimarymotiveofthisStatepolicy。HowfartheStateprotectionis，orcanbemadeeffective，isaquestiontoolargefordiscussionhere。 ItmustsufficetoobservethattheconvictionthattheprivateinterestsofproducerswillcontinuetodefeatallattemptsatStateregulationinsocially\'dangeroustrades\'furnishestosocialismanargumentonwhichthereisatendencytolayanevergreaterstress。 §；5。Thesereflectionsarenecessaryaspreliminarytotheconsiderationofthestaticsanddynamicsofconsumptioninanynationorclass。Fortheyrepresentthemostimportantclassofdisturbinginfluencesintheevolutionofstandardsofconsumption。 Nowinconsideringthepropermodeofestimatingthehumanutilitycontainedinour£；1，700，000，000worthof\'consumables\'，wemustconsider，first，thevalidityofthestandardsofconsumptioninwhichtheyareincorporated。 Ifwehavegroundsforbelievingthatactualstandardsofconsumptionaremouldedbythefreepressureofhealthyorganicneeds，evolvinginanaturalandrationalordertowardsahigherhumanlife，therewillbeapresumptionfavourabletotheattributionofahighmeasureofhumanutilitytotheaggregateincome。 Inthisenquirywemay，therefore，beststartbyconsideringtheevolutionofwantsandmodesofsatisfyingthem，asreactionsofthehalf-instinctive，half-rationaldemandsofmanuponhisenvironment。Humananimals，placedinagivenenvironment(withsomepowerofmovingintoanotherslightlydifferentoneorofalteringslightlythatinwhichtheyare)developstandardsofworkandofconsumptionalongthelinesof\'survivalvalue\'。Theearlieststagesintheevolutionofbothstandards，consumptionandindustry，mustbedirectedbytheconditionsofthephysicalstruggleforlife。Themodernhistoricaltreatmentoforiginsappliesthisprincipleintheanalysisofphysicalenvironments，inwhichLePlayandBucklehavedonesuchvaluablepioneerwork，andwhichsuchthinkersasProfessorGeddeshavecarriedfurtherintheirschemesofregionalsurvey。 Thoughthefundamentalassumptionwhichseemstounderliethismethod，atanyrateinitsfulness，viz。，thatthereisonlyonesortofmankindandthatallthedifferenceswhichemergeinhistory，whetherof\'racial\' characterorofinstitutions，areproductsofenvironment，isopentoquestion，2 thedominantpartplayedbyphysicalenvironmentindeterminingtheevolutionofeconomicwantsandsatisfactions，isnotdisputed。 Likeotheranimals，menmustapplythemselvestoobtainoutoftheimmediatephysicalenvironmentthemeansofmaintenance——thefood，shelterandweapons，theprimitivetools，whichenablethemtoworkandliveatall。Ifweconsiderseparatelytheconsumptivesideofthiseconomy，weseemtograsptheideaofanevolutionofastandardofconsumption，mouldedbytheinstinctiveselectionofmeanstosatisfyorganicneedsoftheindividualandthespecies。Thesortsoffoodwillbethoseobtainedbyexperimentsuponthefloraandfaunaofthecountry，guidedmainlyby\'instinct\'，thoughsomeearlyconsciouscunningofselectionandofcultivationwillservetoimproveandincreasethesupplies。Theclothingwillconsistoffursorplaitedfibresgotfromthesamenaturalsupplies。Theshelterwillconsistofaneasyadaptationoftrees，cavesorotherprotectiveprovisionsofnature。 Eventheearlytools，weaponsanddomesticutensils，thoughadmittingsomemorerationalprocessesofselectionandadaptation，willremainhalf-instinctiveeffortstomeetstrongdefiniteneeds。Solongaswearewithinthisnarrowrangeofprimaryanimalwants，thereisperhapslittlescopeforgraveerrorsandwastesinstandardsofconsumption。Doubtlessmistakesofomissionarepossible，e。g。，atribemayfailtoutilisesomeabundantnaturalsupplyoffoodwhichitiscapableofassimilating。Butsuchomissionswillprobablyberare，atanyrateincaseswherepopulationcomestopressuponthefoodsupply，soevokingexperimentsinallnaturalresources。Graveerrorsofcommission，e。g。，theadoptionofpoisonousingredientsintothesupplyoffoodorothernecessaries，willbeimpossible，solongaswearedealingwithfactorsofconsumptionwhichhaveadefinitesurvivalvalue。Thisseemstoapply，whetherweattributesomeinstinctivewisdomorsomemorerationalprocessofselectionastheevolutionarymotive。 Ineithercasewehavesubstantialguaranteesfortheorganicutilityofmostarticleswhichentertheprimitivestandardofconsumption。Thisviewis，ofcourse，quiteconsistentwiththeadmissionthatinthedetailedoperationofthiseconomytherewillbealargeaccumulationofminorerrorsandwastes。Themostaccurateinstinctaffordsnosecurityagainstsuchlosses:indeedtheverystrengthofananimalinstinctentailsaninabilityofadaptationtoeccentricitiesorirregularitiesofenvironment。Noonecandoubtthiswhowatchesthebusybeeorthelaboriousantpursuingtheirrespectiveindustries。 §；6。Ifmanhadalwayslivedeitherinastationaryoraveryslowlychangingenvironment，hewouldhaveremainedacreaturemotivedalmostwhollybyspecificinstinctsalongafairlyaccurateeconomyofprescribedorganicneeds。Thesubstitutionofreasonforalargepartofthesespecificinstinctswasevokedbythenecessityofadaptationtochangesandchancesofenvironmentsolarge，swiftorcomplex，thatspecificinstinctswereunfittedtocopewiththem。Hencetheneedforageneral\'instinct，ofhighadaptivecapacity，endowedwithapowerofcentralcontroloperativethroughthebrain。Thenetbiologicaleconomyofthisevolutionofacentralconscious\'control\'，inordertosecureabetteradjustmentbetweenorganismandenvironment，carriesustoafurtheradmissionregardingtheorganicvalueofthebasicelementsinastandardofconsumption。 Bytheuseofhisbrainmannotmerelyselectsfromanindefinitelychangingenvironmentfoodsandotherarticlesconducivetosurvival，butadaptsthechangingenvironmenttohisvitalpurposes。Healtersthephysicalenvironment，soastomakeityieldalargerquantityandvarietyofpresentandfuturegoods，andhecombinesthesegoodsintoharmoniousgroupscontributingtoa\'standard\'ofconsumption。Inthisadaptiveandprogressiveeconomy，evolvingnewneedsandnewmodesofsatisfyingoldneeds，shallweexpecttofindthesamedegreeofaccuracy，thesameimmunityfromseriouserrorasinthenarrowerstaticaleconomyof\'instinctive\'animalism？ Intheprocessesofadaptingexternalnaturefortheprovisionofpresent，stillmoreoffuture，goods，indiscoveringnewwantsandmethodsofsatisfyingthem，andinassimilatingthenewwantsinastandardofconsumption，therewillnecessarilybelargerscopeforerror。Butsolongastheinventiveandprogressivemindofmanconfinesthechanges，alikeofindustryandofconsumption，tothesphereofsimplematerialcommoditieshavingacloseandimportantbearinguponphysicalsurvival，thelimitsoferrorandofwastemustcontinuetobenarrow。Allsuchprogresswillrequireexperimentation，andexperimentimpliesapossibilityoferror。Butatthisearlystageintheevolutionofwants，anywant，oranymodeofsupplyingawant，whichisdefinitelybad，willbecurbedorstampedoutbytheconditionsofthestruggleforlife。 Atribethattrieshastilytoincorporateatastypoisoninitsdietmustverysoonsuccumb，asmanymoderninstancesofracesexposedtotheattractionof\'firewater\'testify。Thusfaritmaybeadmittedthatorganicutilitywillassertitssupremacyasaregulativeforce，notonlyintherejectionofthebad，butintheselectionofthegood。Thelowstandardofconsumptionofaprosperouscavemanorofaprimitivepastoralfamilymustconformtoaneconomyofhighutility。Notonlywouldallhisingredientsoffood，clothes，shelter，firingandutensils，becloselyconducivetophysicalsurvival，buttheywouldbecloselycomplementarytooneanother。Thiscomplementarystructureofthestandardofconsumptionfollowsfromtheorganicnatureofman。Unlessallhisorganicneedsarecontinuouslymetheperishes。While，therefore，hemayknownothingofthedistinctionswhichsciencelaterwilldiscoverinthenecessaryconstituentsoffood，hemusthaveworkedoutempiricallyadietwhichwillgivehimsomesufficientlycorrectcombinationofproteids，carbohydratesandfats，andintheformsinwhichhecanassimilatethem。 Soalsowithhisclothes，ifhewearsthem。Nosavagecouldpossiblyadopt，forordinarywear，costumessowastefulandsoinconvenientasflourishincivilisedsocieties。Similarlywithhousingandutensils。Andnotonlymustthearticlesbelongingtoeachgroupofwantsbecomplementary，butthegroupswillthemselvesbecomplementary。Thefiringwillhaverelationtothetimesandsortsoffeeding:clothingandshelterwillbealliedintheprotectiontheyaffordagainstweatherandenemies:toolsandweaponswillbeevenmorecloselyrelated。 Thusintheearlierevolutionofwants，whenchanges，alikeofwaysoflivingandwaysofwork，arefewandslowandhaveaclosebearingonsurvival，astandardofconsumptionwillhaveaveryhighorganicvalue。 §；7。Butwhenmanpassesintoamoreprogressiveera，andadefiniteandfairlyrapidprocessofcivilisationbegins，thebraincontinuallydevisingnewwantsandsatisfactions，weseemtolosetheearlierguaranteesoforganicutility。Whenthestandardofconsumptionincorporatesincreasingelements，notofnecessariesbutofmaterialconveniences，comfortsandluxuries，andaddstothesatisfactionofphysicaldesiresthatofpsychicaldesires，howfarmayitnottrespassoutsidethetrueeconomyofwelfare？ Solongastherequirementsofphysicalsurvivaldominatethestandard，itmatterslittlewhetheranimalinstinctorsomemorerationalproceduremaintainsthestandard。Butwhentheserequirementslosecontrol，andastandardofcivilisedhumanlifecontainseverlargerandmorenumerouselementswhichcarrylittleorno\'survivalvalue\'，thepossibilitiesoferrorandofdisutilityappeartomultiply。 Ifcivilisation，withitsnovelmodesofliving，beregardedasanessentiallyartificialprocess，inwhichconsiderationsoforganicwelfareexercisenoregulativeinfluence，thereseemsnolimittotheamountofdisutilityorillfarewhichmayattachtotheconsumptionofournationalincome。Thisappears，indeed，tobetheviewofsomeofoursocialcritics。 EventhosewhodonotgosofarasMr。EdwardCarpenterindiagnosingcivilisationasadisease，yetassigntoitaverywidedeparturefromthetruepathofhumanprogress。Indeed，itwouldbeidletodenythatthisincome，notonlyinthetermsofitsdistributionbutalsoinitsconsumption，containsverylargefactorsofwasteanddisutility，andthatthehigher，laterelementscarrylargerpossibilitiesofwastethantheearlier。 Butthisadmissionmustnotleadustoconceiveoftheso-called\'artificial\' factorsinastandardofconsumptionastheproducts，eitherofchance，orofsomenormalperversityinthedevelopmentoftasteswhichfoistsuponconsumptionelementsdestituteofhumanvalue。 Fortherearetwopossibilitiestobearinmind。Thefirstisthateveninthehigher，lessmaterial，more\'artificial\'ingredientsofconsumption，thetestof\'survivalvalue\'maystillinsomemeasureapply。Atoocomfortableorluxuriousmodeoflifemayimpairvitality，lessenthedesireorcapacityofparenthood，ormayintroducesomeinheritabledefectinjurioustothestock。Suchresultsmayfollow，notmerelyfrombadphysicalhabits，butfromwhatarecommonlyaccountedgoodintellectualhabits。Foritisbelievedthatthehighcerebrationofanintellectuallifeisinimicaltohumanfertility。Again，sofarassexualattractionsdeterminemarriageandparenthood，modesoflivingwhicheitherimpairoroverlaythepointsofattractionwillcontinuetobeeliminatedbynaturalselection。Habitsofliving，whichdamageeithermanlinessorwomanlinesswillthuscontinuetobecurbedbyNature。 ButNaturemaypossessanothersafeguardofamoregeneralefficacy。 Foranyintelligibletheoryofevolution，eitherofanindividualorganismoraspecies，involvesthepresenceandoperationofsomecentralpowerwhich，workingeitherthroughparticularinstincts，asinloweranimals，orlargelythroughacoordinating\'reason\'，asinman，notonlyconservesbutdevelops。Thisorganicpurpose，ordirectivepower，cannotberegardedasconfinedtomerephysicalsurvival，eitheroftheindividualorthespecies。Itmustalsobeconsideredasaimingatdevelopment，afullerlifeforindividualandspecies。Nowtheevolutionofhumanwantsandstandardsofconsumptionmustberegardedasanaspectofthiswiderprocessofdevelopment。 Whatevermeasure，then，ofcontrolbeaccordedtothecentraldirectivepowerinorganicdevelopment，mustoperatetodetermineeconomicwantsandeconomicstandardsoflife。Ifsuchdirectiveactionwereinfallible，securing，throughthecentralcerebralcontrol，acompletelyeconomicalpolicyofconservationanddevelopment，noproblemsofadistinctivelysocialormoralcharacterwouldarise。Theexistenceoferror，waste，sin，atteststhefallibilityofthisdirectivepower。Aimingtokeeptheindividualandthespeciestolinesofconductthatarepsycho-physicallybeneficial，itsdirectionsareeitherfalsifiedorsetasidebytheforceofsomeparticularimpulseoremotion，usurpingordefyingthecentralauthority。Theliabilitytosucherrorandwasteappearstogrowparipassuwithorganicdevelopment。 Asreasoningmanwithhismorecomplexlifehasmorechancesofgoingwrongthanloweranimalsguidedbyinstinctsalonganarrowlife，sowitheachadvanceinthecomplexityofhumanlifethesechancesoferrormultiply。 Theexplanationofthisexpandingscopeforerrorisnotthatreasonisaninferiorinstrumenttoinstinct。Eveninmattersof\'lifeanddeath\'，withwhich。animalnatureisprimarilyconcerned，reasonmustbeaccountedinthemainanimprovementuponinstinct。Forthoughaparticularinstinctworksmoreeasilyandaccuratelyinanabsolutelyuniformenvironment，reasondealsmoresuccessfullywitheccentricitiesandchanges。Itsessentialqualityisthissuperioradaptiveness。Therefore，inhandlinganenvironment，whichnotonlyisvariousandeverchangingbyitsownnature，butismademorevariousandmorechangingbytheinterferenceofman，thehumanreasonmustworkmoresuccessfullyevenforpurposesofphysicalsurvivalthananyarrayofinstinctscould。Inthestruggleforasufficientregularsupplyoffood，orinthewaragainstmicrobes，therationalismofmodernscienceandindustryperforms\'survival\'workforwhichtheexactitudeofanimalinstinctisessentiallyunfitted。 Theviewthenthaterrorandwastenecessarilyincreasewiththedevelopmentofhumansocietyisnotbaseduponanyinferiorityofreasontoinstinct。 Itisduetothefactthat，ashumanityevolvesfurther，asmallerproportionofitstotalenergyisneededformeresurvival，andalargerproportionisfreeforpurposesofspecificandindividualprogress。Now，thenaturaleconomyforsurvival，whetherworkingbyinstinctorbyreason，isfarmorerigorouslyenforcedthantheeconomyforprogress。Solongastheartsofindustryaresocrudeastoabsorbalmostalltheavailableworkofmaninprovisionforsurvival，thescopeforwasteisrigorouslycircumscribed。 Butasindustrydevelopstoastagethatyieldsaconsiderable\'surplus\' beyondtheneedsformeresurvival，thepossibilityofwasteincreases。 For，then，itbecomespossibleforindividuals，orgroupswithinacommunity，todiverttopurposesofexcessivepersonalenjoymentthesurplusofproductivepowerwhich，\'economically\'directedbyNatureorReason，wouldhaveservedtoraisethegenerallevelofwell-being。 Thewidestaspectofthisphenomenondoesnotconcernushere。Itwillbethesubjectoflatercommentary。Wearehereconcernedonlytoexplainwhyitislikelythat，aswealthgrows，wastealsowillgrow，andwhythehigherstandardsofcomfortinanationoraclasswillcontainalargerproportionofsociallywastefulorinjuriousgoods。Nature\'sguaranteeofthesoundorganicuseofthebasicconstituentsofastandardofconsumptiondoesnotextendwiththesameforcetotheconveniences，comfortsandluxuriesbuiltuponthisbasis。Thoughoneneednotassumethatnoorganicallysoundinstinctofselectionorrejectionoperatesintheadoptionofnewcomfortsorluxuries，thatnaturalsafeguardmustcertainlybeaccountedweakerandlessreliable。Aswestudypresentlytheactualmodesbywhichthehigheringredientsareadoptedintoaclassstandard，weshallseethatthisassumptionisborneoutbyexperience，andthatconsiderationsoforganicwelfareplayarapidlydiminishingpartindeterminingthespreadofmostofthehigherformsofmaterialandintellectualconsumption。 NOTES: