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，placedinagivenenvironmentwithsomepowerofmovingintoanotherslightlydifferentoneorofalteringslightlythatinwhichtheyaredevelopstandardsofworkandofconsumptionalongthelinesof\'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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