d from a useful or productive process on the part
of their possessors."[18] And since all income "derived from dividends,
rent, or interest," is, according to Mr. Churchill, unearned increment,
it is evident that nearly every business, all being beneficiaries, ought
to share the burden of the new reforms.[19] At the same time he hastens
to reassure his wealthy supporters, especially among merchants and
shippers, on grounds explained below by Mr. Lloyd George that the new
taxes will not rise faster than the new profits they will bring in, that
they "will not appreciably affect, have not appreciably affected, the
comfort, the status, or even the style of living of any class in the
United Kingdom."[20]

Mr. Lloyd George in proposing the so-called Socialistic Budget of 1910
reminded the representatives of the propertied interests [he might have
added "in proportion to their wealth"] that the State, in which they all
owned a share, should not be looked upon so narrowly as a capitalistic
enterprise. They could afford to allow the State to wait longer for its
returns.

"A State can and ought to take a longer and a wider view of its
investments," said Mr. Lloyd George, "than individuals. The
resettlement of deserted and impoverished parts of its own
territories may not bring to its coffers a direct return which
would reimburse it fully for its expenditure; but the indirect
enrichment of its resources more than compensate it for any
apparent and immediate loss. The individual can rarely afford to
wait; a State can; the individual must judge of the success of his
enterprise by the testimony given for it by his bank book; a State
keeps many ledgers, not all in ink, and when we wish to judge of
the advantage derived by a country from a costly experiment, we
must examine all those books before we venture to pronounce
judgment....

"We want to do more in the way of developing the resources of our
own country....

"The State can help by instruction, by experiment, by
organization, by direction, and even, in certain cases which are
outside the legitimate sphere of individual enterprise, by
incurring direct responsibility. I doubt whether there is a great
industrial country in the world which spends less money on work
directly connected with the development of its resources than we
do. Take, if you like, and purely as an