y, it has evil psychological effects. In a country bred upon the
general ideas of democracy, not even political equality and a wide
distribution of economic necessities and comforts will suffice to
produce general contentment, if a top stratum of the community is
possessed of the social advantages of vast wealth. Few are satisfied
with their lot as long as they see others, often through no qualities of
their own, more satisfactorily endowed with worldly goods. Lastly,
although great inequality of wealth makes possible a high level of
production, it also makes great waste possible.

Thus, grave dissatisfaction surrounds that very process of capital
accumulation which has been regarded as the high road of economic
progress. Grave doubts have arisen as to the ultimate attainment of the
vision at its end. The task is presented of directing and safeguarding
the course of capital accumulation. It is evident that no policy of wage
settlement can, of itself, do a great deal in this regard. Something it
can do. That, it is ventured, should be along the following lines: it
must aim to effect a distribution of the product of industry in which
the return to the owners of accumulated capital does not exceed a point
determined by weighing the following considerations:

First, the service of capital in production, the sacrifice involved in
much accumulation, and the need of assuring capital accumulation, as
discussed above.

Secondly, the evil effects of inequality of wealth as discussed above.

Thirdly, the fact that the health, energy, and intelligence of those
that carry out the work of production are no less important factors in
effective production than capital itself. And that the possession and
use of these qualities by individuals is to a considerable measure
dependent upon their economic position here and now.

These various considerations, it need hardly be said, cannot be weighed
mechanically, but only by the use of the informed judgment.

The policy of wage settlement must, in addition, give indirect
encouragement to the growth of such industrial beliefs and institutions
as will enable the wage earners to participate in the control over the
conditions of production. Only then will the effect of industrial
methods on the welfare of the wage earner receive constant attention,
and the desire of the wage earners for self-improvement be given
encouragement. In these directions, then, the policy of wage settlement
can and