Page:The Economics of Unemployment.djvu/45

Under inequality of distribution the surplus of unearned income, involving no personal cost of production to the recipient, and furnishing no personal satisfaction of consumption, accumulates unduly, congests the economic organisation, clogs its ducts, and causes stoppages—those periods of trade depression, under-production and unemployment of capital and labour with which we are too familiar. The prevention of this surplus, by absorption into incomes where it would be more largely spent on consumables, would not only raise the general standard of consumption, but would so stimulate production and so maintain it continuously at its highest level, that the aggregate output both of capital goods and consumable goods would be increased. Out of this enlarged real income, a sufficent aggregate could be saved to provide the constant flow of new capital required by a progressive society, even if a larger proportion of the total income were taken out in the shape of consumable goods.

Yes, it may be said, enough 'could be saved,' but would it? If you equalised incomes, by distributing in higher wages the whole or most of the unearned surplus of the rich, what security is there that your theoretically just and natural balance of spending