A more precise definition must be given of the limit of income referred to in the last chapter as “a definite amount of money which might be roughly described as a full competence.” Every man requires, though he by no means always gets a certain income to satisfy his own needs and those of his family. In addition to this he can profitably spend more so as to add to his general utility by conveniences and comforts, he can satisfy his artistic proclivities, his desire for further knowledge, his taste for sport or amusement, all to his own and the general benefit without hurt or hindrance to anyone. But after allowing the broadest scope for the satisfaction of these legitimate wants there is a definite point beyond which he cannot safely go. That is to say, if he acquires, or if by inheritance he finds himself burdened with money beyond So long as money encourages healthy effort a man may be sure the limit has not been reached, the moment money tends to relax effort the limit has been passed. It must be described as healthy effort, as, of course, money-making may increase the undesirable efforts of the speculator, the gambler, and the thief. But who is to decide what is healthy effort? The man himself. No one else can. And he knows to a nicety. Every man or woman has a different standard, and the level of the limit varies in each individual case according to ideals, capacity, and temperament. But it will not depend at all on what is one of the strongest and often the most excusable inducements for spending money, namely, environment, or the conventions of the particular stratum of society to which the man belongs. The limit for one will not be the limit for another, and a man can only become aware that this limit exists at all by observing very closely what actually is the effect that his money is having on his life The main brunt of the attack must clearly fall on those whose incomes are above the limit. They are in numbers a small minority, but the amount they possess is incredibly large. The present income of 1,250,000 people, assessed to income, reaches the vast sum of £850,000,000 a year. Taking the whole population of these islands, it is roughly estimated that there are 1½ millions who can be classed as rich, 3½ millions comfortably off, 38 millions as poor, of whom some 12 to 13 millions are in constant need. The existence of the 1½ millions is one of the chief causes of the condition of the 38 millions. In other words, excess above the limit causes want below the limit. The 3½ millions “comfortably off” are most of them occupied in trying to become identified with the select 1½ millions. If we could estimate the amounts in income which these classes represent the figures would be even more startling. The world has certainly never seen larger fortunes than exist to-day, nor has it seen more extensive and more inexcusable poverty. The average rate of luxurious living in the small minority is higher than it has ever been, and the dangerous and degrading effect of
The case would not be quite so bad as it is if it were only “the requisites of a refined and cultured life” that they were made to provide. But this point must be considered later. In order to appreciate fully the responsibility which the possession of riches entails, let us translate an income into terms of actual sustenance for human beings. By this means it is possible to arrive at a more or less positive measure. There is so much that is relative in most human requirements that they cannot serve as a standard or as a reliable quantity to be used in calculating any equation. But the requirements of a human being can be measured in terms of actual sustenance, because they can be estimated with something approaching precision. Take a man with £20,000 a year, and say we deduct even as much as £3000 for himself and his family. With his remaining £17,000 he has the power of furnishing 170 people with £100 a year apiece. It is not for a moment suggested that he should do any such thing, as he would be quite unable to select 170 worthy people, and even if he could make the choice the 170 people, Now let us state the case fairly from the point of view of the rich man, taking a reasonable and more or less representative type. He may have £10,000, £50,000, or £100,000 a year—that only alters his activities in scope, not in quality. Let us say he has two or three country houses and a house in London. His “position” requires him to keep up a certain establishment, and this means the employment of some forty or fifty servants, grooms, gardeners, chauffeurs, etc., who, he readily tells you, will be thrown out of employment should any of his money be taken from him. If we take the case of a landlord, he will also have tenants, bailiffs, farm labourers, and gamekeepers dependent on him. He keeps the home farm and lets out the other farms on his estate to tenant farmers. Part of his land is built over and brings him in substantial returns in the shape of rent. His villages are in good What possible harm can there be in all this? So far from being parasitic, he counts himself as The fundamental theory which makes this man’s position untenable has already been explained—namely, that after he has satisfied his legitimate requirements all the surplus money he keeps is being held back from serving urgent needs; and, moreover, the method in which he spends the surplus is directly or indirectly harmful to himself and others. We call the money his as if by some miracle he had made it. Often enough he has not helped even by the smallest exertion to create it. The wealth has been and is being daily and hourly produced by the exertion of numberless people who are either employed by him or employed in furthering enterprises in which he has invested his money. It will be said that his share as the Let us take the various points raised by his case seriatim. Many acutely controversial problems are opened, and it will be difficult to detach the particular actions of the rich man without generalising, to some extent, on the problems themselves. It is no argument against our main contention to say that people with costly tastes have, while gratifying them, been able to exercise powers of a high order, for, obviously, it is in spite of their shortcomings in this respect that they have succeeded, and not because of them. If some men with means have It does not affect our argument whether our typical example has been brought up to regard this way of living as natural and necessary for a man of what is called his “position” (that is to say, the purely artificial place which a rich man is able to take up in the community solely on account of his riches), or whether he has made the money for himself and is simply aping the habits and customs of those who already possess it. The distinction between the vieux riches and the nouveaux riches is one they can fight out between themselves. The former scoffs at the latter while all the time he is setting him, and consciously setting him, the example he is to follow. It is not the gaining, but the spending of the money that must occupy our attention here. Our friend’s houses are only a detail in the upkeep of his position. They may be historic castles, sham “ancestral halls,” modern “palatial country residences,” or “fashionable mansions” in town. Does it ever strike the owner as, let us When we come to the staff necessary for the maintenance of these large establishments we touch a problem of employment which must be examined more closely. It is not sufficient to state baldly that these people are employed, and that if the opening were not available for them they would be unemployed. The immediate result of their being discharged would no doubt in some cases be unemployment. That is just the mischief of uneconomic employment. If a large number were simultaneously dismissed there might be temporary unemployment on a large scale, as it would amount to dislocation, like the extinction of some dying industry. But the eventual readjustment would subsequently be by that much the stronger and better adapted As for the particular line of life which domestic service offers under modern circumstances, it is not too much to say that it is, as a rule, very demoralising, more especially for the men. And its demoralising tendency increases in proportion to the size of the establishment. The single general servant lives a life of hard work but genuine service on four to eight shillings a week, often living in friendly relations with master or mistress, and really lifting from them the burden of necessary domestic duties which they with limited incomes and professional work of their own cannot possibly find time to perform; and this remains true in other small households. In the large house the faithful old family servant, who is more of a friend than a servitor, is rare in these days of ostentation. The butler, on wages of fifty to sixty shillings a week, which together with board and lodging represents from £250 to £300 a year, has a life of leisure, ease, and excessive comfort, seldom having to exert himself even up to his limited capacities. Male house-servants are often chosen for their looks; their work is very light physically, they are overfed, and being under-educated, can hardly be blamed for becoming demoralised. These able-bodied If assistance to those who need it is the object of domestic service, it is striking to note that on the money basis, generally speaking, the wrong people are served. Who in the community most require and should specially have the help of servants? The old and infirm, the weak and ill, the very young and the hard-worked. Service under such conditions raises itself to the level of one of the highest occupations that can be imagined. But this is not our system. A man or woman may be ill, old or over-worked, without being able to get the assistance of a single soul. Another man or woman may be young and healthy and have at his or her command a retinue of thirty servants or more, solely because they have money and servants are forced, by economic pressure, to devote their lives to the menial task of furbishing up the endless and complicated appanage of wealth. Now let us turn to the inanimate luxuries, taking into account only indisputable luxuries—that Bond Street catalogues abound with any quantity of examples. Furs at one thousand guineas, fifty-guinea dressing-bags, twenty-guinea hats, thousand-guinea tiaras, fruit and vegetables out of season, cigars at three shillings apiece, ruinously expensive wines, and fantastic foods of all descriptions. There is no need to exaggerate, for all those articles can be bought for much higher prices than those quoted. A great amount of skilled labour of a high order goes to the production of these luxuries, and a great amount of labour of the lowest and most cruelly sweated description is also enlisted for their production, and incredible as it may seem, it is on the ground that they give employment that these luxuries are defended. It was calculated in 18845 that, A prominent statesman,6 expressing the views of his class, said a few years ago: “The more human wants are stimulated and multiplied, the more widespread will be the inducement to hire. Therefore all outcries and prejudices against the progress of wealth and what is called luxury are nothing but outcries of prejudice against the very sources and fountains of all employment.” On such an argument as this the defence of luxuries generally rests. The essence of the fallacy lies in the fact, which cannot be repeated too often, that labour spent on such articles is unremunerative and unproductive, because its ultimate result is only to gratify various forms of vanity and greed. To exemplify by a concrete instance what is unremunerative and what is remunerative, let us take a hundred-guinea ball-gown and a pair of boots. It is not possible to estimate the number of people employed in producing the ball-gown. There is the silk, As for the boots. Again, many more hands than can be calculated have helped to produce them, but they are directly and immediately serviceable to the purchaser, to whose activity the wearing of boots is an essential, and in general they minister to the efficiency of human machines. But if balls are not wrong, ball-gowns must be worn. It is a question of degree; and here again we get to the theory of the limit which in this conjunction can be expressed thus: In relation to human needs, in relation to human To assert that the purchase of luxuries is good for trade is quite as ridiculous as to say that a man can benefit the building and furnishing trade by burning down his house once a year. We do not want to create more artificial wants before we have satisfied the crying human needs which already exist. There is no loophole through which a reasonable defence of the senseless expenditure, which goes on in an increasing measure, can be made. Luxurious living has never been quite so blatant and unashamed as it is to-day, and the effete epicureanism and decadent effeminacy it produces stand out in rather sharp contrast to more hopeful signs of progress and moral and intellectual refinement and vigour which, happily, are visible around us. A lady writing in a review in the early ’seventies describes life in the country house, with its futile routine of heavy meals, sport, card-playing, When one hears of the woman who spent last year £36 5s. on a hat, or another who gave £1250 for a sable cape, it is not the isolated action of criminal folly that chiefly strikes one, but it is that the hat and the cape act as indicators of the sort of price such women are in the habit of paying for their clothes, a large supply of which are in the market ready to meet this artificial demand. Moreover, the habit of extravagance, Vanity exists and insists on being satisfied. It is no good blinking the fact. Luxuries, in one form or another, will continue to be produced. But there is no reason why we should not stem the current lest it swell to danger point. There are many well-known historical examples of the enervating and degenerating effect of luxury on national life, and the modern tendency towards an increased production of these indulgences should be combated not only as a moral weakness, but as an integral factor in the general economic problem. When one considers what real comfort of living, with all the necessary intellectual and artistic equipage, opportunities for amusement, and domestic convenience, can be secured to-day at a comparatively moderate sum, Anyhow, let us abandon once and for all the foolish and ignorant attitude of regarding this display as a desirable form of industrial stimulus which should be fostered and encouraged. Preaching and writing against it has never been of the smallest avail, but it has been necessary to deal with it here as a very important, if not predominating, element in the analysis of the rich man’s conceptions of his duties. In addition to luxuries of establishment, clothes, and food there is a complicated ritual of sport which in this country reaches an almost incredible pitch. It has been estimated that forty-five millions are permanently invested in the apparatus of sport, and an income of over forty millions spent annually upon it. We need not discuss all the intricacies of the numerous branches of sport, observing where its effect is healthy and where harmful. No one will contend that the most expensive forms of it are by any manner of means the best. But the most obvious harm to be noted in this connection is the amount of land which is taken away from agriculture for sporting purposes. Landlords often keep up their shooting at a great loss, amounting to something like five to ten pounds per bird At card-playing, which occupies a vast amount of time in the lives of the rich, sums amounting to hundreds are often lost or gained by one person in one evening. But of the various sinks which help to drain away their money, horse-racing almost holds the first place. There are no statistics to show how many people have been ruined by it, or how many have been lured into a life of gambling by their success in the betting ring. But its popularity is certainly on the increase, as we can see by looking at the number of horses that have run under the rules of racing in the last thirty years. In 1878 there were 2097; in 1908 this figure had risen to 3706. The number of larger race meetings advertised in advance The populace are invited to join in this pursuit, though, of course, they must be railed off to prevent too close contact with those who come in coaches and motor-cars. The crowd is vaguely supposed to be having a good time, and any attack on horse-racing is met by hackneyed arguments about “keeping up the national sport” or “improving the breed of horses,” and perhaps, again, the objection of unemployment for jockeys and bookies might be dragged in. It does not appear, however, to be a good method of improving the human breed. In observing the crowd on a race-course, whether it be the well-dressed portion or the ill-dressed, the betters or the bookies, neither a deep knowledge of humanity nor a very close power of observation into physiognomy is required to note the prevalence of a remarkably low type. But a Many people are present at a race meeting without being conscious that it is attended by any evil consequences. They go to meet their friends, perhaps putting an occasional sovereign Yachting, which also runs away with a great deal of money, comes under a very different category. It is a health-giving and often strenuous occupation, and the seamen employed are, anyhow, deriving incidentally some positive benefit from the life they lead. Nevertheless, out of the 4655 private yachts registered in the current year (an increase of over 3500 in the last forty years),8 only a very small proportion are actually navigated by owners who have any knowledge or love of seamanship. The great majority are floating houses of luxury (viz. a 700-ton steam yacht, But in expressing the strongest disapproval of these excessive luxuries, it is not for a moment suggested that people should rush into the opposite extreme—live in discomfort and adopt the craze for “the simple life,” which is only an inverted form of vanity and ostentation. There are many of the lesser luxuries which give great pleasure and sufficient honest gratification to justify their existence. There may even be some reluctance in condemning extravagance, because the nature of the extravagant man is far preferable to the economical and cautious disposition which sometimes sinks into niggardly meanness. Moreover, any attempt at excessive restrictions and unnecessarily harsh discipline in the upbringing of children invariably leads to a violent reaction in the direction of profligacy and extravagance. Let human nature be allowed free play in all directions; but it is not taking up the attitude of an ascetic or of a prig to condemn unhesitatingly unnatural excesses, reckless licence, the extremes of self-indulgence and greed, the exercise of which by some few involves the neglect, misery, and ruin of so many others. |