LINES OF SOCIAL POLICY
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because he used it in defence of the luxury of the classes.
Malthus saw that the over-saving of the wealthy was the
direct economic force which kept trade back. His remedy
was an increase of luxurious expenditure. But this, even
were it otherwise desirable, is wholly impracticable. We
have seen that the motives which induce the wealthy to
withhold the present use of consuming-power are natural
and necessary. A piece of academic advice, unbacked
by any economic force, is absolutely futile. The owners
of “ unearned” elements of income, as we see, must
accumulate capital which from the social standpoint is
excess. A more natural distribution of consuming-power,
under which the power to consume shall be accompanied
by the desire to consume—not, as now, severed from it—
is the only possible remedial policy.
§ 2. Lines of Social Policy. Taxation of
w Unearned” Income.
Towards this policy, parties of social progress are
slowly gravitating. Unfortunately their path is lighted
by no clear intellectual conceptions, and they move with
hesitant, uneven, staggering steps, often by circuitous
routes, along a road which should be recognised as clear,
straight, and fairly smooth. The policy of progressive
consumption has two direct lines of advance which may
here be briefly indicated.
The surplus of consuming-power in the hands of the
rich may be “ unearned ” by its owners, but it is not, for
all that, “ unearned.” Part of it—for example, the growing
value of town lands—is earned by public effort, and
forms a property designed for public consumption in the
support of wholesome public life