, community. They are called wasteful simply becauee these expenditurea directly, in their first incidence, merely withdraw and dissipate wealth and work from the industrial process, and un productively con-
I sume the products of industry. Indirectly they have a beneficial aggregate effect upon indosCry by inducing an employment of the ftdl prodocUve efficiency of tlie industrial apparatus ; so that In a very short time, it is at least conceivable, the aggregate net output of the industrial process may be aa large and serviceable as before the wasteful expenditure* were entered upon, even with the destruction of tiiaX portion of (he product which goes to maintain the wasteful expenditures. At the same time, the eSect upon business must be held to be pat«nttj favorable. The wasteful expenditures enhance demand and
I so increase the vendibility of the output, — tbey increase profits and
I nise capital iialion. They therefore act lui equivocally to advance the values of the business men's holdings and increase their gains, as counted in business