1。AdamSmith，byopeninghisWealthofNationswithadissertationupontheeconomyofdivisionoflabour，withoutexplainingthatthiseconomyrestsuponapriorconceptionofcooperation，unwittinglyassistedtosetEnglishPoliticalEconomyuponawrongfoundation。
2。Eventhismeasureofworking-classprogresshasbeencheckedduringthelastdecade。RecentstatisticsshowthatinGreatBritainandinmostotherWesterncivilisedcountries，theriseofpricessince1896andstillmoresince1905hasnotbeenattendedbyacorrespondingriseofwages，thoughprofitsandrateofinteresthaverisenatleastequallywithprices。
3。Theordinaryprofit-sharingschemeisvitiated，alikeintheoryandinpractice，bytheerroneousattributionoftheconcept\'profit\'tothatwhichis\'shared。\'Thisisrecognisedatoncewhentheexperimentisproperlydescribed。Fortheordinaryprofit-sharingschemebeginsbylayingdownanormalrateofwagesandofprofits，baseduponcurrentfactsofcommerce。Theprovisionforthisstandardwageandstandardprofitconstitutesafirstchargeuponthetakingsofthebusiness。Undernormalconditionsthiswouldabsorbthewhole。Buttheworkersarenowtoldthat，iftheyproduceanadditionalincome，theyshallhaveinextrawageshalfofit。
Nowthewholeofthisadditionalincomeisduetotheincreasedefficiencyoflabourunderthenewstimulus。Forifanymorecapitalthanbeforeisrequired，provisionforitspaymentatthenormalrateismadebeforeaccountistakenoftheso-calledprofitthatisshared。Nomoreabilityoreffortofsuperintendenceisrequired；infactitisusuallycontendedthatthegreatercaretakenbytheworkersrenderslesssupervisionnecessary。Thus\'profit\'isamisnomerforwhatis\'shared。\'Forthisso-called\'profit\'
isentirelyproducedbygreaterintensity，skillorcareonthepartoflabour。Thefactthatlabourgetsonlyhalf，andthatonlyafterthewholeofwhatshouldbecalledthedeferred\'wage-fund\'hasservedtomeetanydeficiencyinthesumrequiredtopaythenormaldividends，explainswhymostoftheseschemesfailafterashorttrial。Theproportionoftheextra-productevokedentirelybytheincreasedstimulusappliedtolabour，thatisactuallypaidtolabour，istoosmalltomaintaintheefficiencyofthestimulus。Whentheseprofit-sharingschemessucceed，thesuccessisnearlyalwaystraceabletothefactthatintheoriginalagreement，thebenevolentemployerhasfixedhisrateofinterestorsalary，orboth，uponalowerscalethaniscurrentinthetrade，sothatthestimulustolabouriseffective。