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the whole。 It also lies in the nature of protective tariffs that 
they always cost the nation disproportionately much more than 
they are worth to those vested interests which profit by them。 In 
this respect they are like any other method of businesslike 
sabotage。 Their aim; and presumably their effect; is to keep the 
price up by keeping the supply down; to hinder competitors and 
retard production。 As in other instances of businesslike 
sabotage; therefore; the net margin of advantage to those who 
profit by it is greatly less than what it costs the community。 
    Yet it is to be noted that the Americans have prospered; on 
the whole; under protective tariffs which have been as 
ingeniously and comprehensively foolish as could well be 
contrived。 There is even some color of reason in the contentions 
of the protectionists that the more reasonable tariffs have 
commonly been more depressing to industry than the most imbecile 
of them。 All of which should be disquieting to the advocates of 
free trade。 The defect of the free…trade argument; and the 
disappointment of free…trade policies; lies in overlooking the 
fact that in the absence of an obstructive tariff substantially 
the same amount of obstruction has to be accomplished by other 
means; if business is to prosper。 And business prosperity is the 
only manner of prosperity known or provided for among the 
civilised nations。 It is the only manner of prosperity on which 
the divine right of the nation gives it a claim。 A protective 
tariff is only an alternative method of businesslike sabotage。 If 
and so far as this method of keeping the supply of goods within 
salutary bounds is not resorted to; other means of accomplishing 
the same result must be employed。 For so long as investment 
continues to control industry the welfare of the community is 
bound up with the prosperity of its business; and business can 
not be carried on without reasonably profitable prices; and 
reasonably profitable prices can not be maintained without a 
salutary limitation of the supply; which means slowing down 
production to such a rate and volume as the traffic will bear。 
    A protective tariff is only one means of crippling the 
country's industrial forces; for the good of business。 In its 
absence all that matter will be taken care of by other means。 The 
tariff may perhaps be a little the most flagrant method of 
sabotage by which the vested interests are enabled to do a 
reasonably profitable business; but there is nothing more than a 
difference of degree; and not a large difference at that。 So long 
as industry is managed with a view to a profitable price it is 
quite indispensable to guard against an excessive rate and volume 
of output。 In the absence of all businesslike sabotage the 
productive capacity of the industrial system would very shortly 
pass all reasonable bounds; prices would decline disastrously and 
overhead charges would not be covered; fixed charges on 
corporation securities and other credit instruments could not be 
met; and the whole structure of business enterprise would 
collapse; as it occasionally has done in times of 
〃over…production。〃 There is no doing business without a fair 
price; since the net price over cost is the motive of business。 A 
protective tariff is; in effect; an auxiliary safeguard against 
overproduction。 Incidentally the fact that its imposition does 
not result in insufferable hardship serves also to show that the 
new order of industry is highly productive; quite inordinately 
productive in fact。 And it is a divine right of the nation to use 
its discretion and offset this inordinate efficiency of its 
common stock of knowledge by adroitly crippling its own commerce 
and the commerce of its neighbors; for the benefit of those 
vested interests that are domiciled within the national 
frontiers。 
    But the divine right of national self…direction also covers 
much else of the same description; besides the privilege of 
setting up a tariff in restraint of trade。 There are many 
channels of such discrimination; of divers kinds; but always it 
will be found that these channels are channels of sabotage and 
that they serve the advantage of some group of vested interests 
which do business under the shelter of the national pretensions。 
There are foreign investments and concessions to be procured and 
safeguarded for the nation's business men by moral suasion backed 
with warlike force; and the common man pays the cost; there is 
discrimination to be exercised and perhaps subsidies and credits 
to be accorded those of the nation's business men who derive a 
profit from shipping; for the discomfiture of alien competitors; 
and the common man pays the cost; there are colonies to be 
procured and administered at the public expense for the private 
gain of certain traders; concessionaires and administrative 
office…holders; and the common man pays the cost。 Back of it all 
is the nation's divine right to carry arms; to support a 
competitive military and naval establishment; which has ceased; 
under the new order; to have any other material use than to 
enforce or defend the businesslike right of particular vested 
interests to get something for nothing in some particular place 
and in some particular way; and the common man pays the cost and 
swells with pride。 
 
Chapter 7 
 
Live and Let Live 
 
    The Nation's inalienable right of self…direction and 
self…help is of the same nature and derivation as the like 
inalienable right of self…help vested in an irresponsible king by 
the grace of God。 In both cases alike it is a divine right; in 
the sense that it is irresponsible and will not bear scrutiny; 
being an arbitrary right of self…help at the cost of any whom it 
may concern。 There is the further parallel that in both cases 
alike the ordinary exercise of these rights confers no material 
benefit on the underlying community。 In practical effect the 
exercise of such divine rights; whether by a sovereign monarch or 
by the officials of a sovereign nation; works damage and 
discomfort to one and another; within the national frontiers or 
beyond them; with nothing better to show for it than some 
relatively slight gain in prestige or in wealth for some 
relatively small group of privileged persons or vested interests。 
And the gain of those who profit by this means is always got at 
the cost of the common man at home and abroad。 These inalienable 
rights are an abundant source of grievances to be redressed at 
the cost of the common man。 
    It has long been a stale commonplace that the quarrels of 
competitive kings in pursuit of their divine rights have brought 
nothing but damage and discomfort to the underlying peoples whose 
material wealth and man power have been made use of for national 
enterprise of this kind。 And it is no less evident; though 
perhaps less notorious; that the pursuit of national advantages 
by competitive nations by use of the same material wealth and man 
power unavoidably brings nothing better than the same net output 
of damage and discomfort to all the peoples concerned。 There is 
of course the reservation that in the one case the kings and 
their accomplices and pensioners have come in for some gain in 
prestige and in perquisites; while in the case of the competitive 
nations certain vested interests and certain groups of the kept 
classes stand to gain something in the way of perquisites and 
free income; but always and in the nature of the case the total 
gain is less than the cost; and always the gain goes to the kept 
classes and the cost falls on the common man。 So much is 
notorious; particularly so far as it is a question of material 
gain and loss。 So far as it is an immaterial question of jealousy 
and prestige; the line of division runs between nations; but as 
regards material gain and loss it is always a division between 
the kept classes and the common man; and always the common man 
has more to lose than the kept classes stand to gain。 
    The war is now concluded; provisionally; and peace is in 
prospect for the immediate future; also provisionally。 As is true 
between individuals; so also among the nations; peace means the 
same thing as Live and Let Live; which also means the same thing 
as a world made safe for democracy。 And the rule of Live and Let 
Live means the discontinuance of animosity and discrimination 
between the nations。 Therefore it involves the disallowance of 
such incompatible national pretensions as are likely to afford 
ground for international grievances;  which comes near 
involving the disallowance of all those claims and perquisites 
that habitually go in under the captions of 〃national 
self…determination〃 and 〃national integrity;〃 as these phrases 
are employed in diplomatic intercourse。 At the same time it 
involves the disallowance of all those class pretensions and 
vested interests that make for dissension within the nation。 
Ill…will is not a practicable basis of peace; whether within the 
nation or between the nations。 So much is plain matter of course。 
What may be the chances of peace and war; at home and abroad; in 

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