CHAPTER XXI
PERSONAL AND SOCIAL EFFICIENCY
§ 1. What light does our human valuation of economic pro-
cesses throw upon the conditions of individual and social pro-
gress? Our examination of industry has shown us the ways in
which the actual production and consumption of wealth affect
the personal efficiency and welfare of individuals. The organic
law of distribution clearly indicates personal efficiency, alike for
purposes of economic productivity and for the wider art of life, to
depend primarily upon the maintenance of sound relations be-
tween the output of economic activities and the income of eco-
nomic satisfactions. A healthy system of industry will demand
from each producer an amount and kind of ‘costly’ labour accom-
modated to his natural and acquired powers. By such a distribu-
tion of the socially useful work which is not in itself agreeable to
its performers, the common economic needs of society are supplied
with the smallest aggregate amount of human cost. Similarly, we
see how, by a distribution of wealth according to the needs of each
member, i. e. according to his ‘power’ as consumer, the largest
aggregate amount of human utility is got out of the wealth dis-
tributed.
But this burden of ‘costly’ work, required of the producer and
adjusted to his powers, is not the only work that he can do. The
main object of the shorter work-day and the better .apportion-
ment of ‘costly’ labour, as we have already recognised, is to lib-
erate the individual so that he has time and energy for the volun-
tary performance of ‘productive’ activities that are ‘costless,’
interesting and beneficial to his personal life. Some of these
voluntary activities will be ‘economic’ in the sense that they may
produce goods or services which have an exchange value. Such
is the gardening or the wood-carving which a man may do in his
spare time. Though it may bring him a direct return of per-
sonal gain and satisfaction that is non-economic, it may also be
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