Bytheworkersthemselvesandevenbysocialreformers，theinjuryinflicteduponwagesandthestandardoflivingbyirregularityofemploymentisappreciatedfarmoreadequatelythantherelatedinjuryinflictedonthephysiqueandmoraleoftheworkerbysandwichingperiodsofover-exertionbetweenintervalsofidleness。
Thisbriefsurvey，however，isnoplaceforadiscussionofthecausesandremediesofirregularemployment。Itmustsufficetonotethatoveralargenumberofthefieldsofindustrytheexcessesanddefectsofsuchirregularityprevailtoanextentwhichaddsgreatlytothetotalhumancostoftheproducts。Sofarasournationisconcerned，thereisnoreasontoholdthatthiswasteisincreasing。Evidenceofhoursoflabourandofunemployment，indeed，appeartoindicatethatitissomewhatdiminishing。
Buttheunequaltime-distributionofhumancostsmustcontinuetorankasagreatenhancementoftheaggregateofsuchcosts。
§；2。Butnotlessinjuriousthantheunequaltreatmentofequals，istheequaltreatmentofunequals。Thebadhumaneconomyofworkingimmaturechildrenisalessonwhicheventhemost'civilised'nationshavebeenexceedinglyslowtolearn。Thebadhumaneconomyofworkingoldpersonsofdecliningvigour，whenable-bodiedadultlabourisavailable，issofarfrombeinggenerallyrecognisedthatemployersareactuallycommendedonthegroundofhumanityforkeepingatlabourtheiragedemployees，whenyoungerandstrongerworkersareavailable。
Fortunately，thelargerprovisionforretiringpensionsatteststhegrowingrecognitionofthisaggravationofthehumancostsofindustry。Inbothcasesalike，theemploymentoftheyoungandoftheold，theerrorarisesfromashort-sightedviewoftheinterestsofthesinglepersonorhissinglefamily，insteadofafar-sightedviewofthewelfareofthecommunity。Itisoftenasourceofimmediategaintoaworking-classfamilytoputthechildrenouttowage-earningasearlyaspossible，andtokeepoldpeopleworkingaslongastheycangetworktodo。Itdoesnotpaythenation，evenintheeconomicsense，thateitherofthesethingsshouldbedone。Thecaseofchild-labouris，ofcourse，themoreserious，inthatitevidentlyentailsnotmerelyawastefulstrainuponfeebleorganisms，butanevenheavierfuturecostinstuntedgrowthandimpairedefficiencythroughoutanentirelife。
Whentheplayofcurrenteconomicforcesplacesuponwomenworkwhichmencouldperformmoreeasily，orcreateswomen'sindustrieswithconditionsoflabourinvolvingexcessivestrainsupontheorganism，thedoublehumancostsareevenheavier。Forifexcessivefatigueornervousstrainaffectsawomanasworker，theinjuriouscostsarelikelytobecontinuedandenhancedthroughhercapacityformotherhood。Touseupordamageitswomenbysettingthemtohardwagelabourinmillandworkshopisprobablythegreatesthumanwasteanationcouldpractiseorpermit。Forsomeoftheprevailingtendenciesofmodernindustrialismappeartobemore'costly'intheirbearinguponwomenthanonmen。
Inregardtofactorywork，andallotherindustrialworkinvolvingalongcontinuousmuscularornervousstrain，or，asinshoplabourwithitslonghoursofstanding，medicalauthoritiesareunanimousinholdingthatwomensuffermorethanmen。1'Ifalikeamountofphysicaltoilandeffortbeimposedonwomen，theysuffertoalargerdegree，'statesSirW。MacCormac。2Statisticsofemploymentfromvariouscountriesagreeinshowingthattheamountofmorbidity，asmeasuredbythenumberofdayslostbyillness，isgreateramongworking-womenthanamongworking-men，andthatthemortalityofworking-womenisgreaterthanthatofworkingmen，notwithstandingthefactthattheaveragelifeofafemaleislongerthanthatofamale。Longhoursandspeeding-upofmachinerythusevidentlyinflictgraverorganiccostsonwomenthanonmen。Wherepieceworkisinvogue，itfurnishesastrongerstimulustoover-straininwomen，becausethegenerallownessoftheirwagegivesalargerimportancetoeachaddition。
§；3。Thusincomparingthehumancostsofproducingagivenquantityofgoods，dueaccountmustbetakenofthedistributionoftheoutputofproductiveenergyamongworkersofdifferentsexes，andages。Theearliertendencyofthefactorysysteminthiscountry，theexistingtendencyinsomecountries，hasbeentoimposeagrowingofmonotonousandfatiguinglabouruponwomenandchildren。Atcertainstagesinthedevelopmentofindustrialmachinery，thishasbeenheldtobea'profitable'economy，andinmanyprocessesofhandlaboursubsidiarytothefactorysystemitstillsurvives。Thoughlegislationandotherinfluenceshavedonemuchtochecktheworstinjuriesofchildemploymentinfactoriesandworkshopsinmorecivilisedcommunities，agreatamountofhumancostisstillincurredunderthishead。Childhalf-timersarestillusedinconsiderablenumbersintextilefactories，whilethevastexpansionofdistributiveworkhassuckedintoprematurewage-earningimmensenumbersofboyswhooughttobeatschool。
ItisprobablethatthenettendencyofBritishindustryinrecentyearshasbeentowardsaslowreductionofthemoreinjuriousand'costly'formsoffemaleemployment。Thoughanenormousnumberoffemalesareengagedinworkthehoursandhygienicconditionsofwhichescapelegalregulation，probablyagrowingproportionofemployedwomencomeunderaneconomyofshorterhours。Thedrudgeryofdomesticserviceengagesalessnumberofwomen，whiletheopeningofalargervarietyofemploymentsbothinmanufactureandincommercehassomewhatimprovedtheirpowertoresisttheexcessivepressureofmachine-conditions。Therecentorganisedattackuponthe'sweatedindustries'，however，revealsthefactthatatthelowerlevelofmanytradesagreatmassofoppressiveandinjuriouslabourisextortedfromworking-women。
Certainformsofnewmechanicallabour，notinvolvingheavymuscularfatigue，buttaxingseverelythenervoussystem，areoccupyingalargenumberofwomen。Thetype-writerandthetelephonehavenotyetbeenbroughtintoconformitywiththedemandsofhealth。Thoughmachineryisgenerallybringinginitswakerestrictionsonhoursoflabour，thenormalwork-dayoffactory，officeandshopstillimposesagravelyexcessivestrainuponwomenemployees。Nosmallproportionofthisexcessivecostofwomen'swork，however，isattributabletolegal，professional，orconventionalrestrictions，which，precludingwomenfromenteringmanyskilledandlucrativeemployments，compelthemtocompeteinlow-skilledandoverstockedlabour-markets。Thesocialwasteofsuchsexdiscriminationistwo-fold。Evenintradesandprofessionsforwhichmenhaveusuallyagreateraptitudethanwomen，somewomencanperformtheworkbetterandmoreeasilythansomemen，and，iftheyaredeniedequalopportunityofaccess，theworkisdoneworseoratagreaterhumancost。Therefusaltoadmitwomenintothelearnedprofessionsuponequaltermswithmenundoubtedlyinvolvesalosstosocietyofsomeofthefinestserviceofthehumanintellect，whileitentrustssomeoftheskilledandresponsiblework，thusdeniedtowomen，torelativelyignorantandincompetentmen。Theotherhumancostisperhapsevenheavier。Fortheexcessivecompetition，towhichwomenarethusexposedintheoccupationslefttothem，depressestheremunerationinmostinstancesbelowthetruelevelofphysicalefficiency，inducesorcompelsexcessivehoursoflabour，breaksdownthehealthofwomen-workersandinjurestheirlife。
§；4。Thisgeneralsurveyshowsthatthehuman'costs'oflabourarecloselyassociatedinmostcaseswiththatsubdivisionandspecialisationofactivitieswhichtakesitsextremeforminmachinetendingandwhichconformsmostcloselytomere'repetition'asdistinguishedfromthecreativebranchesofproduction。Butthisidentificationof'repetition'andhumancostscannotbepressedintoagenerallaw。Forreflectionshowsthatrepetitionorroutinedoesnotalwayscarrycost，andthatontheotherhandsomelabourwhichhasconsiderablevarietyisverycostly。Healthyorganiclifepermits，indeedrequires，acertainadmixtureofroutineorrepetitionwithitsmorecreativefunctions。
Acertainamountofregularrhythmicexerciseofthesamemusclesandnerve-centresyieldsvitalutilityandsatisfaction。Insomesportsthisexercisemaybecarriedsofarastoinvolveconsiderableelementsoffatigueandendurancewhichareoffsetduringtheiroccurrencebythesenseofpersonalprowessandtheinterestofachievement，Thissentimentalzestofendurancemaynotoriouslybecarriedtoextremes，injurioustothephysicalorganism。Moreover，acertainamountofnarrowphysicalroutineoftenfurnishesareliefelementforthetirednervesorbrain。Diggingorknitting，thoughintolerableasaconstantemployment，mayfurnishbytheirveryphysicalroutineanorganicbenefitwhenappliedasarecreation。Thesame，indeed，istrueofmostothernottootaxingformsofmanualormentalroutinelabour，especiallyiftheycontainsomeobviousutility。Someslightelementofskillseemsneededforcertainnatures，butabareuninterestingrepetitioncommonlysuffices。
Suchconsiderationsdisposeoftheassumptionthatallrepetitionorroutineinproductiveworkisnecessarilyindicativeofhumancostandcarriesnoorganicutilityorsatisfaction。Itisonlywhenrepetitionisextendedsoastoengagetoolargeashareofthetimeandenergyofahumanbeingthatitinvolvesacost。
So，ontheotherhand，itisnotthecasethatalllabourcontainingvarietyandopportunityforskilliscostlessandorganicallygood。Takeforanotableexampleagriculturallabour。Irregularityofsoilandweather，thechangesandchancesofanimalandvegetablelife，theperformanceofmanydifferentprocesses，removesuchworkfromthecategoryofexactroutine。
Yetmostofthelabourconnectedwithagricultureis，undertheactualconditionsofitsperformance，heavy，dullandjoyless。Ineachprocessthereisusuallyenoughrepetitionandmonotonytoinflictfatigue，andtheaccumulationofseparatefatiguesinalongday'swork，unalleviatedbyadequatepersonalinterestintheprocessoritsproduct，makesaheavyburdenofcost。
Thesameholdsofotherdepartmentsofindustrywheresomeinherentelementsofskillandinterestarefound。Thetotalburdenofeffortgivenoutinalongday'swork，continuedweekafterweek，yearafteryear，undertheconditionsofwagedom，greatlyoutweighsthesetechnicaladvantages。
Durationandcompulsioncancelmost，thoughnotall，ofthesuperiorityofsuchworkovermachinetending，orclerking。Alittlelabourinanyofthehandicrafts，inmachine-running，themanagementofmotor-carsorboats，ingardeningandothermodesofagriculture，servesasapleasantpastimewhenundertakenasavoluntaryandoccasionalemployment。Makeitregular，continuous，compulsory，andtheenjoymentsoonvanishes。Theveryelementsofinterestforthecasualamateuroftenconstitutetheheaviestcostfortheworkerwholivesbydoingthisandnothingelse。Takemotordrivingforanexample。Thequickexerciseofnerveandmuscle，thekeennessofeye，wristandattention，requiredtodriveeasily，quicklyandsafely，amidtrafficorinatangleofroads，givesnerveandinteresttodrivingasarecreation。Butthismultiplicationoflittlestrainsandrisks，accumulatinginalongday'swork，andundertakendayafterday，inallconditionsofhealth，dispositionandweather，soonpassesfromanagreeableandstimulatingexerciseintoatoilsomedrudgery。
Considerationoftheworkinthedistributivetrades，wholesaleandretail，whichabsorbanever-growingproportionofourwage-earners，ismostinstructiveforunderstandingtherespectivepartsplayedbyspecialisation，duration，andcompulsioninthehumancosts。Machineryhaslittledirectcontrolovertheworkoftheseclerks，warehousemen，shop-assistants，typists，etc。:theirworkcontainsconstantlittleelementsofvarietyindetail，andamoderateamountofitimposesnofatigue。Butthescopeaffordedforpersonalskillorachievementisinsufficient；mostofitisunmeaninganduninterestingsofarasusefulresultsareconcerned；itinvolvesconstantobediencetotheordersofanother；anditisundulyprolonged。
§；5。Wearenowinapositiontosumuptheresultsofourgeneralanalysisofthehumancostsoflabour，inwhichTarde'sdistinctionbetweencreationandimitationorrepetitionwasourstartingpoint。Sofarasthemerelyormainlyphysicalcostsareconcerned，themuscularandnervousstrainandfatigue，excessiverepetitionisatruedescriptionofthechiefcause。Machinetendingatahighpaceforalongworking-dayisinitselfthemost'costly'typeoflabour，and，insofarasamachinecontrolsthesortandpaceofworkdonebyahumanbeing，these'costs'accumulate。
Butmostworkisnotsodirectlycontrolledbymachinery，andyetissohighlyspecialisedthattheroutineconstantlyover-taxeswithfatiguethemuscles，nervesandattention。Thedurationandpaceofsuchlabourareusuallysuchastoheapupheavycostsofphysicalwearandtearandofphysicaldiscomforts。
Buttheantithesisofcreationandimitationorrepetitionhasadifferentsignificancefortheinterpretationofphysicalcosts。Thereitisnotsomuchtheabsenceofnoveltyinvolvedinrepetition，astheabsenceofpersonallibertyandspontaneitythatcountsmostheavily。Thereare，infact，fewsortsofnecessaryproductivelabourwhichamanisnotpreparedtodoforhimself，withsomemeasureofpersonalsatisfaction，ifhehaswithinhisowncontroltheperformanceofthistaskandtheresult。Butwhenanother'swillandpurposesupersedehisown，prescribingactionstobedoneunderconditionsoftime，placeandmanner，determinedbythatother，thisservitudetoanother'swillisalwaysirksomeandmaybedegrading。
Thehumancostofmostdomesticservicelieslargelyhere。Theworkitselfhasmoredetailedvarietyandinterestthanmost，andwherethehousewifeherselfdoesit，itoftenfurnishesanetfundofhumansatisfaction。Butthemoralandintellectualcostsofahiredservant，compelledtoobeythearbitraryandcapriciousordersofamistress，andtosuppressherownwill，tastesandinclinationsintheexecutionofhertask，areoftenveryheavy。Inasmallerdegreethisappliestoallwage-earnersengagedinanyworkwherescopefortheirfreevolitionistechnicallyfeasible。
Tosubstituteanother'swillforone'sown，inmatterswhereonehasawill，isalwaysahumancost。Thatcost，however，neednotbegreat。Whenaworkerisaunitoflabourinsomegreatbusiness，hisactionsconformingtoruleswhich，howevertroublesome，belongtothesystem，theconsciousnessoflossoflibertyisfarlessthanwhenthechangingwillofapersonalemployeroperatingamidthedetailsofhisworkistheinstrumentofdiscipline。
Ashop-girlinalargebusinesshasafeelingofgreaterindependencethanadomesticservant，afactory-handthanashop-girl，whilethelowwageofhomeworkersisinpartattributabletotheremovaloftheworkerfromthemediatedominationoftheemployer'swill。
§；6。Inassessingthepsychicalelementsofcost，itiswelltodistinguishthoserelatedtoalossofliberty，oranencroachmentuponpersonality，fromthosewhicharetheconsciousresultsorcounterpartsofthephysicalstrains。Fortheenlargementofcertainofthesepsychicalcostsisanexceedinglyimportantfactorinwhatiscalled'industrialunrest'。Thisirksomenessofnarrowlyspecialisedlabourandofthe'enslaving'
conditionsoftheordinaryworkinglifegrowswiththegrowthofintelligenceandsensibilityamongtheworking-classes。Undertheolderorder，ofacceptedclassdistinctionsandeconomicstatus，implicitobediencetotheemployer'swillcarriednoconsciousmoralcost。Anewsenseofpersonaldignityandvaluehasnowariseninthebettereducatedgradesofworkerswhichinterfereswitharbitrarymodesofdiscipline。Whentheyarecalledupontodoworkinawaywhichappearstothemfoolish，injurious，orinequitable，asenseofresentmentisarousedwhichsmouldersthroughtheworkingweekasamoralcost。Witheverywideningofeducationtherecomes，moreover，adiscontentnotmerelywiththeparticularconditionsofthelabour，butwiththewholesystem，orsetofconditions，whichaddictssolargeaproportionoftheirworkinghoursandenergiestothedullheavytaskbywhichtheyearntheirliving。
Sotoothenarrowlimitationinthechoiceofworkwhichthelocalspecialisationofindustryinvolves，becomesagrowinggrievance。The'conditionsoflabour'forthemselvesandothers，takenasawhole，arerealisedasaninvasionandadegradationoftheirhumanity，offeringneitherstimulusnoropportunityforamantothrow'himself'intohiswork。Fortheworkonlycallsforafragmentofthat'self'andalwaysthesamefragment。
Soitistruethatnotonlyislabourdividedbutthelabourer。Anditismanifestthat，sofarashisorganichumannatureisconcerned，itsunusedportionsaredestinedtoidleness，atrophy，anddecay。
Thisanalysisoftheconditionsmayseldombefullyrealisedintheconsciousnessoftheworker。Buteducationhasgonefarenoughtomakethemrealfactorsofworking-classdiscontent。Theyconstitutealargemotiveintheworking-classmovementwhichwemaycalltherevoltoftheproduceragainsttheexcessivehumancostsofhisproduction。
Thisisthegreatandseriousindictmentagainsttheeconomyofdivisionoflabour。Associatedwithitisthechargethattheworkerinoneoftheseroutinesubdividedprocesseshasnoappreciationoftheutilityorsocialmeaningofhislabour。Hedoesnothimselfmakeanythingthatisanobjectofinteresttohim。Hiscontributiontothelongseriesofproductiveprocessesthatgototurnoutacommoditymaybeveryvaluable。But，ashecannotfromhislittleangleperceivethecooperativeunityoftheproductiveseries，itmeansnothingtohisintelligenceorheart。
Sonotonlydoestheperformanceofhistaskaffordhimnosatisfaction，butitsendorobjectisamatterofindifferencetohim。Thereisthisvitaldifferencebetweenthecarpenterwhomakesacupboardoradoor，fitsitintoitsplaceandseesthatitisgood，andthebricklayer'slabourerwhomerelymixesmortarandcarriesbricksuponahod。Amanwhoisnotinterestedinhiswork，anddoesnotrecogniseiniteitherbeautyorutility，isdegradedbythatwork，whetherheknowsitornot。Whenhecomestoaclearconsciousnessofthatdegradation，thespiritualcostisgreatlyenhanced。Itistruethatspecialisationinlabourissociallyuseful，andthat，ifthatspecialisationdoesnotencroachtoolargelyupontheenergyandpersonalityoftheindividualworker，heisnotinjuredbuthelpedbythecontributiontosocialwealthwhichhisspecialworkenableshimtomake。Largerenlightenmentastotherealmeaningandvalueofhiswork，andthesenseofsocialservicewhichshouldfollow，mayindeedbeexpectedtoreduceconsiderablytheirksomenessofitspresentincidence。
Butitcandosoonlyupontwoconditions。Inthefirstplace，thedurationandstrainuponhisphysicalandmoralnaturemustbediminished。Secondly，thegeneralconditionsbothoflabourandofitsremunerationmustbesuchastoleadhimtorecognisethatthedisciplinewhichitenjoinsisconducivetoalargerliberty，viz。，thatofwillingcooperationwithhisfellowsintheproductionofsocialwelfare。Asyettheattainmentoftheseconditionshasnotkeptpacewiththenewdesiresandaspirationswhichhavegrownsorapidlyamongtherankandfileofworkersintheadvancedindustrialcountries。Henceanewburdenofspiritualcosts，expressinganincreaseddivergencebetweenconsciousaspirationsandthenormalconditionsoftheworker'slot。Theeducationofthetownworker，theassociationwithhisfellowsinlargeworkshops，thelifeofthestreets，theeducationoftheschool，thenewspaper，thelibrary，theclub，havemadehimincreasinglysensitivetothenarrownessanddegradationofexcessiveroutineinjoylesslabour。
NOTES:
1。Cf。Goldmarck，PartII，pp。126。
2。ReportoftheSelectCommitteeoftheHouseofLordsonEarlyClosinginShops，1901。CHAPTERVIII:HUMANCOSTSINTHE
SUPPLYOFCAPITAL
§；1。Sofar，indiscussingthehuman'costs'ofproduction，wehaveconfinedourattentiontotheactivitiesofbodyandminddirectlyoperativeinproducingmarketablegoodsorservices，gradingthemfromthecreativeandgenerally'costless'workoftheartistandinventortotherepetitiveand'costly'workoftheroutinemanuallabourer。Wenowproceedtoexaminethehumancostsinvolvedintheprocessesofprovidingthecapitalwhichcooperateswithlabourinthevariousproductiveoperations。Theeconomic'costs'，forwhichpaymentismadeoutoftheproducttocapital，aretwo，risk-takingandsaving。Whatarethehumancostsinvolvedintheseeconomiccosts？
Toclearthegroundforthisenquiryitwillbewelltobeginbymakingplainthesenseinwhichrisk-takingandsavingare'productive'activities。
Neitherofthemis'work'intheordinaryorganicsenseoftheapplicationofmuscleornervousenergytotheproductionofwealth。Bothwouldratherbeconsideredasactivitiesofthehumanwillandjudgmentwhichincreasetheefficiencyofthedirectlyproductiveoperations。Theirproductivitymaythusberegardedasindirect。Butitisnonethelessrealandimportantonthataccount。Forunlesstherewaspostponementofsomeconsumptionwhichmighthavetakenplace，andtheapplicationofthenon-consumptivegoods，whichthispostponementenabledtocomeintoexistence，tousesinvolvingrisksofloss，'work'wouldbeveryunproductiveincomparisonwithwhatitis。
Risk-taking，thegivingupofapresentcertainutilityorsatisfactionforthechanceofalargerbutlesscertainsatisfactioninthefuture，is，weknow，theessenceofbusinessenterprise。Suchenterprisebynomeansalwaysentailsahumancost。Inindustry，asinallhumanfunctions，experiments，involvingrisk，arefrequentlyasourceofvitalinterestandofconscioussatisfaction。Therearetworootsofthissatisfaction，thestakingofone'sjudgmentandskillinforecastinganddeterminingfutureevents，andtheactualjoyofhazard。Theformerisacommontraitofintelligentpersonality，thelatterapowerful，thoughlessgeneralmotive，involvinga'sporting'interestinlife。Thespiritofadventureappliedtobusiness，enhancestheconsciousvalues。Whetheritbemotivedbysomephysicalrestlessnessorbysomeelementoffaith，itmustbeaccountedanorganicgood，alikeasmeansandend。
Ifalltherisk-takinginvolvedincurrentindustrywereofthisnature，itwouldnotthenfigureinourbillofhumancosts，butontheothersideoftheaccount。Butwheretheconditionsofactualbusinessimposeelementsofriskthatareeitherinkindormagnitudecompulsory，notvoluntary，notonlydoesnosatisfactionattendthetakingoftheserisks，butconsiderablelossandsufferingmayaccrue。Risksthatareeithergreatinthemselvesorgreatinrelationtothecapacitytobearthemarefrequentlyrequiredbytheconditionsofmodernbusinessenterprise。Themenwhoundergotheserisksdonotdeliberatelyorwithexpressintentionstaketheirfaithandforesightonagameofgainorloss，orevenenterintotheriskswiththegambler'szest。Theyundergotheserisksbecausetheycannothelpthemselves，andtheanxietyattendantontheserisksisoftenoneoftheheaviestpsychicalandphysicalcostsofthebusinessman。
§；2。Inanalysingrisk-takingasaspecialcostofcapital，Imustguardagainstonemisunderstanding。Risk-taking，ofbothsorts，humanlygoodandhumanlybad，isnotofcoursebyanymeansconfinedtoadministrationofcapital。Everyonewho，eitherbychoiceorbythenecessityofhissituation，devoteshispersonalenergiestomakinganyproductforthemarket，ortoimprovingsomepersonalcapacitywithaviewtoitsproductiveuse，incursrisks。Insomecasestherisksmaynotindeedentailrealhumanwaste，aswheretheartistorinventorspeculateswithhiscreativefaculty。
Ortheprofessionalman，preparingforhiscareer，maywillinglyandwithzestenteracompetitioninwhichprizesarefew。Menequippedwithvigorousintellectanddeterminationwillgetoutofthestruggleforprofessionalorcommercialsuccessasatisfactionofwhichtheriskoffailureisanecessarycondition。Butformostmenasmallquantumofhazardsuffices。
Alittleriskmaystimulatebutalargerriskwilldepressefficiency。
Adoctor，alawyer，anengineeriswillingtoputhisnaturalandacquiredabilityagainstthoseofhisfellowsinafairfieldwherethechancesofsuccessarereasonablylarge。Butwhentherisksaresonumerousandsoincalculableastheyareto-dayinmostprofessionalcareers，theanxietytheycausemustbeaccountedaheavyhumancost。Thesameappliestothecareerofmostmodernbusinessmen。Italsoconstitutesanewandgrowingcostoflabour。
Forthoughitmaybetruethattheactualrisksofaworkinglife，personaloreconomic，arenogreaterthaninformertimes，theemotionalandintellectualrealisationoftheserisksisgrowing。Educationenablesandcompelstheintelligentworkmantounderstandtheprecariousnatureofhislivelihood，andhisgrowingsensibilityaccumulatesin'worry'。
Thisiscertainlyoneofthemainsourcesof'industrialunrest'。
Butthoughrisk-takingthusentersasahumancostintothelifeofotherownersofproductivepowers，wedorighttoaccorditspecialattentioninrelationtothesupplyofcapital。Forintheprovisionofallformsofcapital，andinthepaymentforitsuse，risk-takingisanelementofprimaryimportance，and，thoughintheoryseparablefromtheactofabstinence，postponement，orwaiting，whichcomesintoprominenceasthedirectpsychicalcostofsaving，itisnotseparableinindustrialpractice。
§；3。Letusfirstexaminetheeconomiccostsinvolvedintheprovisionofindustrialcapital。Thatprocessconsistsinmaking，orcausingtobemade，non-consumablegoods，whichareusefulforassistingthefutureproductionofconsumablegoods，insteadofmaking，orcausingtobemade，directlyconsumablegoods。Weneednotdiscussatlengththeshallowcriticismpressedbysomesocialiststotheeffectthatsincelabourmakesallgoodswhethernon-consumableorconsumable，theonlyeconomicandhumancostofprovidingtheseformsofcapitalistheproductiveenergyoflabour。Forthedecisionandeffortofmindorwill，whichdeterminesthatnon-consumablesshallbemadeinsteadofconsumables，proceedsnotfromthelabouremployedinmakingthem，butfromtheownersofincomewhodecidetosaveinsteadofspending。Thisdecisiontosaveinsteadofspendingistheeconomicforcewhichcausessomuchoftheproductivepoweroflabourtooccupyitselfinmakingnon-consumables。Itisofthefirstimportancethattheordinarybusinessman，towhom'saving'isapttomeanputtingmoneyinabank，orbuyingshares，shallrealisetheconcretesignificanceofhisaction。
Whatheisreallydoingiscausingtobemadeandtobemaintainedsomeadditiontotheexistingfabricofmaterialinstrumentsforfurtheringthefutureproductionofcommodities。Thisisnot，asitmayatfirstappear，asingleactofchoice，thedeterminationtouseaportionofone'sincome，say£；100，inpayingmentomakesteelrailsortoputupafactorychimney，insteadofpayingthemtomakeclothes，furniture，orwineforone'scurrentconsumption。Theeffortofpostponement，orthepreferenceofuncertainfutureforcertainpresentconsumables，necessaryforsupplyingcapital，ifitisaneffort，isacontinuousonelastingallthetimethecapitalisinuse。Thecriticwhoasks，whyasingle'actofabstinence'
whichispastanddonewithshouldberewardedbyaperpetualpaymentofannualinterest，failstorealisethat，sofarassavinginvolvesaserviceableactionofthesaver，itgoesonallthetimethatthesaverliesoutofthefullpresentenjoymentofhisproperty，i。e。，aslongashissavingscontinuetofunctionasproductiveinstruments。
Thisview，ofcourse，bynomeansbegsthequestionwhetherthereisofnecessityandalwayssomehumancostorsacrificeinvolvedinsuchaprocessofsaving。Itis，indeed，clearthatagooddealofcapitalmaybesuppliedwithoutanyhumancostseitherinpostponementofcurrentsatisfactionorinrisk-taking。Thesquirrelstoresnutsbyanorganicinstinctofeconomyagainstthewinter，asthebearstoresfat。Thethriftyhousewifelaysupprovisionsbyacalculationhardlylessinstinctiveagainsttheprobablerequirementsofthefamilyinthenearfuture。Thebalancingoffutureagainstpresentsatisfaction，involvedinsuchprocesses，cannotbeconsideredasinvolvinganyhumancost，butrathersomeslightbalanceofutility。
IamcertainlyinnosensetheloserinthatIdonotlayoutallmyincomethesamedaythatireceiveitinpurchasingimmediatesatisfaction。WhyIamnottheloserisevident。
Thefirst5percentofmyincomeIcanperhapsspendadvantageouslyatonceuponnecessariesandcomfortswhichcontributeimmediatelytomywelfare。ButifIknowthesumhasgottolastmeforsixmonths，itwillevidentlypaymeinorganicwelfaretospreadnearlyalltherestinaseriesofexpendituresoverthewholeperiod，sothatImayhavethesenecessariesandcomfortsallthetime。Ifmyincomeisnomorethanjustsufficienttokeepmeinfullhealth，i。e。，inprovidingvital'necessaries'，organicwelfaredemandsaquiteevenexpenditure，entailingtheproperquantityofpostponement。Ifthereisanythingoverforexpenditureonunnecessaries，thiswillnotbequiteevenlyspreadoverthesixmonths。Foranycomfortsitaffordsappeartobringmorepleasureifenjoyednowthaninthreeorsixmonths'time。1And，besides，thereisthequestionofuncertaintyoflife，upontheonehand，andtheriskofbeingunabletogetboldofthefuturecomfortswhenImaywantthem。
Thisdepreciationoffutureascomparedwithpresentsatisfactionandtheseriskswillproperlyinducemetogradedownwardstheexpenditureoncomfortsduringtheperiodinquestion。Butinthislayingoutofmyincome，soastosecureformyselfthemaximumofsatisfactionandutility，2thereisnohumancostorsacrifice。Onthecontrary，anyfailureto'save'or'postpone'mightbeattendedbyaheavycost。Manyasavagehasdiedofstarvationbecausehehasgorgedtorepletioninsteadofstoringfoodtotidehimovertillhegetspossessionofanewsupply。Thusthissimplesteconomyofsaving，thespreadingofconsumptionoveraperiodoftime，isevidentlycostless。
§；4。Now，thoughthesavingwhichconsistsinkeepingstoresofconsumablesforfutureconsumptiondoesnotfurnishwhatwouldbecalledcapital，andsodoesnotcomedirectlywithinthescopeofourparticularenquiryinto'costsofcapital，'itgivesausefultestfortheeconomyofsavingundermoderncapitalism。Themodernsaverdoesnot，indeed，usuallykeepinhispossessionforfutureconsumptionastoreofconsumablegoods。
Itwouldbeinconvenienttostorethem，manyofthemarebynatureperishableandsoincapableofstorage。Besides，modernindustryaffordshimawayofmakingindustrialsocietystorethemforhim，or，morestrictly，makesitproduceaconstantsupplyoffreshconsumablestowhichhecangetaccess。
Nay，itprovidesstillbetterforhisneeds，foritenableshim，bypostponingsomepresentconsumptiontowhichheisentitled，notmerelytotakeoutoftheconstantsocialsupplythefullequivalentofhispostponedconsumptionatanytimehechooses，buttoreceiveanadditionalsmallregularclaimuponotherconsumptiveorproductivegoods，calledinterest。
Thisextrapaymentwasregardedbytheclassicaleconomistsasacostorpricepaidforaneffortofabstinence。Morerecenteconomistshaveusuallychosentosubstituteforabstinence'waiting'orsomeequallycolourlessterm。Butabstinenceisbetter，foritdoessuggestapainfuleffortinvolvingsomehumancost，someplayofmotivesnaturallyadversetosavingwhichrequirestobeovercomebyapositiveeconomicpayment。Thus，notmerelytheeconomic，butthemoralorhumannecessityofinterestisbestasserted。
Thisabstinenceorpostponementofpossiblepresentconsumptionofcommoditiesisadmittedlytheconditionoreventhecauseofthesupplyoftheproductiveinstrumentswhichincreasetheproductionoffuturewealthandincidentallyfurnishthefundoutofwhichtheinterestispaid。Forourpresentpurpose，then，itmakesnodifferencewhetherwelookattheprimitivesavingwhichstoredconsumablesforfutureuse，orthemodernsavingwhichcausesproductiveinstrumentstobecreated，appliedandmaintained。
Thequestionwhethertherearehumancostsofsaving，andwhattheyare，isinthelastresortthesameinbothcases。
Outofanyindividual，orsocial，incomeacertainamountorproportionofsavingevidentlymaybe'costless'inthehumansense。Thatistosay，thepersonorsocietythatsavesitsustainsnoorganiclossorinjurybydoingso，thoughhemaysometimesthinkorfeelhedoes。Ifhedoessothinkorfeel，societymustsetacounter-weightagainstthisfalseimaginaryloss，intheshapeofinterest。But，aswehavealreadynoted，thereisagooddealofsavingwhichrepresentsthecalculatedoutlayoveraperiodoftime，whichtheownerofanincomewillmakeinhisowninterest。
Insuchcasesthereisnohumancost，andifaneconomiccostinterest
isdefrayed，ithasnohumancorrelative。Fromthestandpointofhumandistributionofwealthitinvolvesawaste。
Theorganicutilitytoindividualsofhoarding，inorder，bydistributingconsumptionoveralongerperiodoftime，togetfromitalargeraggregateofgoods，willthusfurnishaconsiderablequantityofinstrumentalcapitaltomodernindustry。For，onlybyputtingthepostponedconsumptionintotheformofinstrumentalcapital，canthesaversestablishthelientheywantuponthefutureoutputofconsumables。Ifalltherequiredcapitalcouldbegotbythissimpleplayofmotives，thesaversbalancingmoreusefulfutureunitsofconsumptionagainstlessusefulpresentunits，withdueallowanceforrisksconnectedwithpostponement，thesupplyofcapitalwouldbehumanly'costless。'Thoughsomeelementofrisk，inherentintheproceeding，would，takenbyitself，carryacost，thesuperiorutilityattachingtothepostponedunitsofconsumption，ascomparedwiththatwhichthesamenumberofunitswouldaffordwhenaddedtotheconsumptionalreadyprovided，wouldoffsetthatcost，sothatthearrangement，asawhole，wouldbecostless。
§；5。Thoughthemethodofouranalysishasobligedustoapproachthisproblemofsavingaspartofourenquiryintoprocessesofproduction，becauseitisthemeansbywhichaproductivefactor，viz。capital，issupplied，itappertainsdirectlytotheprocessofconsumption，oroutlayofincomeonconsumables。Asthecurrentexpenditureofanymemberofindustrialsocietywillbedistributedamonganumberofdifferentpurchases，contributingbynatural，conventional，orpurelypersonalconnections，towardsastandardofconsumptionendowedwithmaximumutilityorwhattheconsumertakesforsuch，sowillitbewiththedistributionofexpenditureoverpointsoftime。Letuselevateintoaclearconsciouspolicyofcalculationwhatisinlargemeasureablindinstinctiveconduct，andtheorganicrelationbetweenthetwo'economies'isapparent。Itinvolvesanintricatebalancingoflargerfutureutilities，weightedbyrisks，againstsmallerpresentutilitiesnotsoweighted。Totakethesimplestinstance。If，outofanincomeof£；600cominginthisyear，Idecidetoconsume£；500
inthecurrentexpenditureoftheyearandtoputaside£；100forconsumptioninfiveyears'timewhenIpurposetoworkonlyhalf-timeandearnonlyhalfmypresentincome，Ishallhaveestimatedthattheluxurieswhichicouldbuythisyearbythesixthhundredpoundsexpenditureareslightlylessagreeableor'useful'tomethanthecomfortspurchasablebythefourthhundredpoundsasvisualisedfiveyearsoff，withanallowanceforthechancethatimaythenbedead，orthatImayhavecomeintoalegacywhichrendersthispostponementofconsumptionunnecessary。
Inaword，thiseconomicegomustbeconceivedasoperatingbyaplanofoutlaywhich，inregardtothedisposalofthecurrentincome，hasalongitudeandlatitudeofsurveyandvaluation。Justasthedifferentingredientsofpresentconsumptionmakeacomplexorganicwholewithdelicatelyproportionedparts，thesizeandformofeachdictatedbytheunifiedconceptionofthecurrentstandardofcomfort，sothedispositionoftheincomeoveraseriesofpointsoftimeinwhichpresentvaluesofeachseveralconsumableandofthewholestandardarecomparedwithfuturevalues，involvesthesimilarapplicationofaplanfortherealisationofmyeconomicideal。
Thoughafullyrationalconceptionandcalculus，eitherforthecompositionofcurrentexpenditureorforprospectiveoutlays，isveryrare，somehalf-conscious，half-instinctivecalculusofthesortmustbeaccreditedtoeverybody。3
Sofarasitisrightlyconductedbytheirreasoningorjustinstinct，itmeansthat，outofallormostofthemembersofanindustrialsociety，somehumanlycostlesssavingcouldbegot，somecontributiontowardsthesociallydesirablefundofcapital。
§；6。As，then，wehaveseenthatacertainproportionofthevariouscurrentactivities，whicharedirectlyproductiveintheshapeofskilledandunskilledlabourofbrainandhand，areeitherhumanlycostlessorcarrysomepositivefundofhumanutility，soisitalsowiththeprocessesofsavingandrisk-taking，whichgotothesupplyandmaintenanceofcapital。
Itisnotdifficulttoconceiveasocietyinwhichallthesavingneededforthenormaldevelopmentofindustrymightbecostless。Inaprimitivesociety，basedchieflyonagricultureandsimplehandicrafts，onemightfindthebulkoftheworkingpopulationearningasecureandsufficientlivelihood，butwithnomarginofsavingsforinstrumentalcapital。Thecomparativelysmallamountofsuchcapitalaswasneededmightbefurnishedmainlyorentirelyfromthesurplusincomesofalandowningoragoverningclass，extractedasrentortaxes。
Ofcourse，if，aswouldcommonlyoccur，suchrentsortaxeswereextortedfromthepeasantrybystarvingthemorbyimposingaburdenofexcessivetoil，thehumancostsofsuchsavingwouldbeveryheavy。Butwhereaclassoffeudallordsdrewmoderaterentsandfinesfromtheirtenants，orwhereagoverningcaste，suchastheIncasinancientPeru，appliedtousefulpublicworksalargeshareofwhatwouldbecalledthe'economicrent'ofthecountry，takenintaxation，suchsavingneedentailnohumancost。Norissuchcostlessprovisionofcapitalnecessarilyconfinedtoasocietylivingundersimpleindustrialconditionsinwhichcomparativelylittlesavingcanbeutilised。Eveninanadvancedindustrialsocietythelargeincessantincrementsofcapitalmightbeprovidedcostlessly。
Forifthenationaldividendwerenotonlyverylargebutsowellorequablydistributed，asincome，thatallclasseshadmorethanenoughtosatisfytheircurrentorganicneeds，suchasocietywould，byavirtuallyautomaticeconomy，secretestoresofcapitaltomeetthefutureneedsofagrowingpopulationorarisingstandardofconsumption，aseveryanimalorganismnaturallylaysupstoresoffat，muscleandphysicalenergy，forfutureuse。
Awell-orderedsocialisticstate，weresuchpossible，wouldcertainlyapplytheindustrialforcesatitsdisposal，soastosecureanadequatesupplyofcostlesscapital。Aftermakingproperprovisionoutofcurrentindustryforthephysicalandmoralhealthofthewholepopulation，andfornormalprogressinpersonalefficiencyofworkandlife，itwouldapplythesurplusofindustrialenergytoimprovingthecapitalfabricofindustrysoastoprovidefortheproductionofincreasingwealth，leisure，andotheropportunitiesinthefuture。Thecalculation，astowhatproportionofcurrentindustrialenergyshouldbethusappliedtopreparingfutureeconomicgoodstoripenforutilityatvariousdistancesoftime，wouldofcoursebeadelicateoperation。Butsofarasitwerecorrectlycarriedout，itwouldbesociallycostless。
Foronthehypothesisthatadequateprovisionforcurrentneedsofindividualstabilityandprogresshadbeenafirstchargeontheindustrialdividend，thepostponementofanyadditionalconsumptioninvolvedinsocialsavingcouldnotrightlyberegardedasinvolvinganynethumancost。For，if，insteadofthesurplusbeingsaved，ithadbeenpaidouttoindividualmembersofsocietyforcurrentconsumption，itwouldexhypothesibeunproductiveoforganicwelfare，beingappliedinaninjuriousandwastefulattempttoforcethepaceofadvancesinthecurrentstandardofliving。Applyingtheorganicmetaphor，onewouldsaythatitwasanaturalfunctionofanorganisedsocietytosecretecapitalinduequantityforitsfuturelife。
§；7。Buthowfarcanitbeheldthatanindustrialsocietylikeoursissoorganisedas'naturally'tosecretethe'right'quantityofcapital，toprovideitinacostlessway，andtodistributeiteconomicallyamongitsvarioususes？Afullanswertothesequestionsmustbedeferreduntilouranalysisoftheconsumptionsideofthenationaldividendenablesustoassessthehumanutilityoftheproductiveworktowhichcapitalisapplied。Atpresentwemustassumetheutilityofthe£；300，000，000
ofsavingsappliedoutoftheaggregatenationalincometotheenlargementofindustry，andconfineourselvestoenquiringwhatproportionofthisamountislikelytobe'costless'andhowtoestimatethe'humancosts'
attachedtotheotherpart。Itis，ofcourse，quiteevidentthatsuchanswerascanbegivenisofageneralandspeculativenature，withnopretenceatquantitativeexactitude。
Inconsideringsavingswithaneyetodiscoveringthehumancosts。
Itwillbewelltoclassifythesesavingsunderthreeheads。Firstwillcomewhatmaybetermedtheautomaticsavingofthesurplusincomeoftherich，thatwhich，remainingover，afterallwants，inclusiveofluxuries，aresatiated，accumulatesforinvestment。Theproportionofnewcapitalproceedingfromthissourcewillvarywiththeamountandregularityofsuchincome，itsdistributionamongtherich，andtheirattitudeofmindtowardstheexpenditureoftheirincomes。Theautomaticorspontaneouscharacterofthissavingisduetothefactthatnocloserelationexistsbetweenprogressinindustryandtheevolutionofapersonalstandardofconsumption。
Suddenrapidadvancesofincomearenotusuallyaccompaniedbyacorrespondingpressureofnewpersonalwantstendingimmediatelytoabsorbinincreasingexpenditureeachincreaseofincome。Thoughnolimitcanbesetupontheexpensesofaluxuriousstandardofconsumptionandthevagariesofpersonalextravagance，expensivehabitstaketimefortheirestablishment，andinaprogressiveindustrialsocietywhereskilful，orlucky，businessmenaremakingfortunesrapidly，theiracquisitivepowerwillbeapttorunfaraheadoftheirconsumptivepractice。Moreover，theabsorptioninthepracticeofmakingmoneyevidentlyretardsthefullacquisitionofhabitsoflavishexpenditure，givingfullscopetothedevelopmentneitheroftastesnorofopportunities。Thiswillbeparticularlytrueofincomesgrowingnotbyregularincrementsbutbysuddenrushes。ExtremeinstancesaboundintherecenthistoryofAmerica。Wherethequickskilfulseizureofnewsuddenopportunities，conjoinedwithageneraldevelopmentofnationalresourcesatanabnormallyrapidpace，enablesaJayGouldoraJohnD。
Rockefellertoamassmillionswithinafewyears，awidenaturaldivergenceiscreatedbetweenincomeandexpenditure。Enormousmassesofunspentincomethusrollupintocapitalwhichagaincontinuallygrowsbytheaccumulationoftheunspentinterestitearns。Thoughthenumberofpersonsinthispositionoffinancialmagnitudeisveryfew，aconsiderableclassofsuccessfulbusinessmeninAmericaandineveryadvancedEuropeancountrycomesintothesamecategoryasregardscapacityofsaving。Whiletheirpersonalandfamilyexpendituremaybecontinuallyrising，itwilltendtokeepinsafeadjustmenttowhatmaybetermedaconservativeestimateoftheirincome。
Theoccasionalgreattradingcoups，theenormousprofitsofacommercialorfinancialboom，willnoteventendtobeassimilatedinexpenditure。
Wherevertheeconomiccircumstancesofacountryaresuchastothrowalargeproportionofthegrowingwealthintothehandsofaclassofbusyrisingmen，byaseriesofgreatwindfallsormoreorlessincalculableincrements，thenewcapitalflowingfromthesesuperfluousincomeswillbelarge。Moreover，sofarasitisautomatic，itwillhavelittleifanyregardtorateofinterest，andthusto'socialdemand'，sofarasinterestcanbeconsideredajustindexofsocialdemand。4
Evenwhentheelementoffluctuatingorfortuitousincreaseofincomeisnotpresent，afairlyrapidadvanceofincome，particularlywhereitis'earned'andthereforecarriesnopresumptionofindefinitecontinuance，willordinarilyleaveaconsiderablemarginofautomaticsaving。
Thiswillbelargerwherethestandardoflivingisalreadyestablishedonahighlevel。Forthoughcertaincuriouspsychologicaltraitsseemtoshowanextraordinaryconcentrationofpersonalinterestintheextravaganceswhichgivepersonaldistinctionin'society'，thelowpressureoforganicutility，ortheemergenceofpositivedisutilityinherentinmanyoftheseformsofluxury，mustbeconsideredtoexercisesomecheck。Puttingthemattersimply，onewouldsaythatrealprimaryhumanneedsaremorereadilyassimilatedinastandardofconsumptionthanpurelyconventionalorpositivelyinjuriousmodesofexpenditure。So，makingeveryallowanceforthedepravityoftastesandthezestforcompetitiveextravagance，itwillremaintruethattheclasseswithlargeincomeswilltendtocontributetocapitalalargeamountofsurplusincomebyaprocessofautomaticaccumulation。
Forsuchsavingthereisneitheraneconomicnorahumancostinvolved:
theinterestitreceivesisintheeconomicsenseasmucha'surplus'astherentofland。Notmerelyistherenohumancost，thereisapositivehumanutilityinsuchsaving，foritisaninstinctiverejectionoftheinjuriousefforttoincorporatethissurplusinacurrentexpenditurealreadyadequatetosatisfyallfeltwants，goodorbad。
ItislikelythatalargeandagrowingproportionofthetotalvolumeofsavinginEnglandandintheWesternworldisofthisorder。Forthoughitmaynotbegenerallytruethatthericharegrowingricherandthepoorpoorer，itisprobablytruethatbothalargerquantityandalargerproportionofthenationalincomeareinthehandsofrichandwell-to-dobusinessmenwhosemeanshavebeenadvanCingfasterthantheirexpenditure。
§；8。Somuchfortheautomaticsavingoftherich。Wehavenexttotakeintoaccounttheadmittedlylargecontributionoftheclasseswhoinrespectofincomeare'middle'。Thiscomprisesthegreatmajorityoffamiliesengagedinthedirectiveworkofmanufactureandcommerce，andalmostthewholeoftheuppergradesoftheprofessionalandofficialclassesinsuchacountryasours，aswellasaconsiderablenumberofpersonsofmoderate'independent'means。Acertainamountofconscious'thrift'