STATIC STATE AND THE TECHNOLOGY OF ECONOMIC REFORM 39 
inordinately large incomes, those in Group E distressingly small 
incomes. In fact, it is found that the occupational inequality is 
always high in those countries where the educational system is 
not highly developed.® 
But if in the same country or one with a similar distribution 
of natural talent, a highly efficient educational system were intro- 
duced as a factor in changing the balance, results similar in prin- 
ciple to those illustrated in the third column might be expected 
to follow. If the better 50 per cent of those who, without educa- 
tion, would be compelled to follow the occupations in Group E, 
could be trained sufficiently to enable them to enter Group D, 
this would leave only 20 per cent of the total population in the 
condition of being compelled to follow some occupation in Group 
E. Again, if half of those who would, without education, be fitted 
only for occupations of the D group, were under the educational 
system promoted to the C group, and half of those who would, 
without education, have to follow the occupations of the C group, 
were enabled to move on to the B group and so on to the top, we 
would then find the possible occupational distribution represented 
by the third column. This shift in the occupational distribution 
of the populace would disturb the equilibrium wages of all occu- 
pations and would tend to raise the wages of the lower grades, 
especially the very lowest, and to reduce the incomes of the 
upper grades, especially the very highest. In short, it would 
flatten out the curve of inequality. 
If, instead of applying the remedy at the source, the attempt 
were made, without providing an educational system, to force up 
the wages of the E grade of occupations or force down the incomes 
of the A grade, a train of evils would follow, similar in kind to 
those described earlier in this chapter. The higher wages in the 
E grade occupations would take away whatever inducement there 
was for trying to avoid these occupations and get into the higher 
grades. A permanent surplus of laborers of the E grade would be 
on the market, offering themselves for hire at the artificially 
advanced wage, ete., ete. 
Again, if it is found that one factor in the immobility of labor 
or in the congestion of the lower grades of occupations is drunken- 
ness, the rational remedy is not to try to force up wages in those 
* See an article by S. N. Procopovitch on “The Distribution of National 
Income,” in the Economic Journal, March, 1926.