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。

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