CONTENTS

xix

removal of duties once imposed. Interests of others than the protected
producers involved, Dear living makes dear labour. Peculiar con:
ditions in England leading to adoption of free trade. The need for
protection to nascent industry in the light of U.S. experience. Power
of protection to attract capital, securing diversity of industry, doubtful.
Protection and wages. Relative wages in different employments
affected. Infant industries in advanced countries. Non-economic
grounds for protection. Food supplies in war time. Is one-sided
free trade injurious? Retaliation. Slaughter markets, Foreign
competition checks stagnation, and restricts monopolies. Revenue
duties under a free trade régime. Designed to yield revenue, not with
a view to incidental protection . . 244-266

PAGES

CHAPTER XVII
GOVERNMENT INTERFERENCE: TAXATION

AUTHORITIES

SIDGWICK .  ‘‘ Principles of Political Economy,” Book Ii.
[. S. MLL , ¢* Principles of Political Economy,” Book V.
FARRER . . ‘“The State in its relation ta Trade.”

Government interference generally to be deprecated. Some classes
peculiarly in need of protection, even against themselves, Case of
children : compulsory education defensible and even necessary.
Factory legislation. True freedom of contract requires authoritative
Interpretation of some elliptic contracts. Injury to third parties
festrained. Economy of associated action. Results worth securing
through common action not always worth independent effort. Government
 expenditures met by taxation. Public supply of goods at a
price. Should public enterprises aim at profit? Division of expenses
according to benefit conferred by public action. Additional public
interest modifies this division. Where specific benefit is entirely unmeasurable,
 a criterion of just distribution of burdens is needed.
Taxation a payment for a prime necessity of social life. Equal tax
Payments by each citizen, not just where wealth is unequally distributed,
The wealthy not entitled to lighter burdens than the poor. Faculty
a a measure of justice in taxation. The principle of equal sacrifice.
Revenue or wealth as a measure of ability. Proportional taxation.
Exemption of revenues below a fixed amount. Graded exemption,
Degressive and progressive taxation. The criterion sought is that of a
just distribution of the burdens of a tax system, not of individual taxes.
Taxation affects the marginal utility of income, and should affect all
equally. The appropriate limits of government expenditure. Cost
ind utility of government services must be considered together . 267-280