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"