Wasteful expenditure on a scale adequate to y
ofEaet the surplus productivity of modem induatry | is nearly out of the question. Private initiatiTe I ,^u
■ Cf. Hobaon, Problem of the Untir^toytd, Appendix U) oh. V, ^ tC*^
' Ct. Hobaon, Problem of the Unemployed, ch. VL Mr. Hobwii
do«a Dot use the term "waate" in
CoTuonmatfon, flaal olwpter.
ff'^'
cannot carry the waste of goods and services to nearly the point required by the business situation. Private waste is no doubt large, but business principles, leading to saving and shrewd investment, are too ingrained in the habits of modem men to admit an effective retardation of the rate of saving.* Something more to the point can be done, and indeed is being done, by the civilized governments in the way of effectual waste. Armamenta, public edifices, courtly and diplomatic establishments, and the like, are almost altogether wasteful, so far as bears on the present question. They have the additional advantage that the public securities which represent this waste serve aa attractive investment securities for private savings, at the same time that, taken in the aggregate, the savings so invested are purely fictitious savings and therefore do not act to lower profits or prices. Expenditures met by taxation are less expedient for this purpose ; although indirect taxes have the peculiar advantage of keeping up the prices of the goods on which they are imposed, and thereby act directly toward the desired end. The waste of time and effort that goes into military service, aa well as the employment of the courtly, diplomatic, and ecclesiastical personnel, counts effectually in