Functional socialism

CAPITAL 1a)

combat in afew months. I have been told that several retail businesses have been seriously hurt by the oneway traffic. To the capitalist employer all this is fortune of war. He accepts it with the fortitude of the ancient gladiator when the verdict was thumbs down. But if any non-capitalist development hits him, he is quick to demand compensation. For the moment we merely observe that any change of our economic structure brings with it no legal obligation to compensate.

Even if the consumer has in fact supplied the constant capital, the equities notwithstanding, it belongs to the capitalist. “The law allows it and the court awards it.”’ Indeed, except to arrive at some estimate of any claim that may subsequently be made when function displaces private control, the question is hardly worth pursuing. The principle to be adopted should be that function takes possession of all plant at the cost required to replace it. That effectually gives the guietus to any claims of watered capital. I have already noted the growing disposition to issue capital based on earning capacity and not on ascertained assets. I cannot too emphatically declare that any such category of capital must stand or fall on profits and profits only. Ifa new system be instituted which eliminates profits, all capital based on profits has no claim on the community. Variable capital calls for little comment. It is really what nowadays we term working capital. Whatever its former ré/e in our industrial system,