102 THE PROBLEM OF THE UNEMPLOYED
them ; they are needed for the improvement and enlargement
of public life.
Our civic and, in general, our public life, is narrow,
meagre, inefficient, and undignified in comparison with
what it ought to be, if the wealth due to public effort
was wisely and economically laid out in the public service.
Taxation, or State assumption on equitable terms, of
properties whose increasing values are due to public
activity and public need, to be administered in the supply
of common wants and the enrichment of the common
life, is likely to be of material assistance in raising the
general standard of consumption. The adoption of progressive
taxation of accumulated wealth through the Death
Duties is based on an instinctive recognition that this
assertion of a public claim is both just and expedient.
The same is true of the progressive income-tax, so adjusted
as to secure for purposes of public use that portion of
the income of the well-to-do which otherwise would
materially assist to swell the excess of accumulated forms
of capital.
The direct and progressive taxation of ground rents
and values, so far as they can be ascertained, would
accord with this policy. The economist, while insisting
upon the necessity of securing to all private investors
whose “saving” is needed to furnish capital, the market
price of such saving, i.e., the minimum interest required
to draw sufficient capital into the several channels of
production, would sanction the taxation of dividends
which exceeded that necessary limit. The application of
this purely economic principle would of course be liable
to be overruled by considerations of practical politics.
At present many elements of “unearned” income accrue