Functional socialism

136 FUNCTIONAL SOCIALISM

accumulated in that particular way because the capitalists had the power to exact from the consumer the amount required to pay profits plus a surplus for new capital. Always it was the consumer who provided all capital for improvements and developments. In more recent times, this is frankly acknowledged in balance sheets, a sum being retained for sinking fund and future expansion. Retained from what? From the price paid by the consumer.

Strictly regarded, it is the consumer—that is the community—who has paid for all capital expansion; and it is the consumer or community to whom all accretions of capital value should belong. The “saving” of the capitalist is found on analysis to be the saving of the consumer. For if the consumer, in the first instance, had not saved enough to buy the commodity, how could the capitalist have saved? The actual process has been that the consumer, like a confiding fool, has merely transferred his savings to somebody else. But in another way, all capital is social capital seized by private persons by virtue of a superior economic position. Rent, in fact.

The curious thing about a capitalist is that he can see his capital destroyed, almost without a murmur, providing the damage is done by a fellow-capitalist. An old business is ruined by a new business started round the corner. Capital built up on a valuable patent may be lost by a newer and a better patent. Or a change of population may put a business ors de