t. If
we think of an act as done by the government _for_ private citizens,
we call it paternalism; but if we think of an act as done _by_
citizens collectively _for_ themselves as the best way to get these
things done, we may call it, in a broad sense, socialism.[1]

Government is in one aspect a direct good to its citizens. In return
for its collective cost men collectively get the enjoyment of social
organization, markedly in contrast with the uncertain ties and hazards
of primitive communities. But government becomes also a mode of social
investment, an indirect agent, a productive enterprise. Wealth applied
through it secures in some cases a greater product than is possible by
individual action.

But when the government undertakes these various tasks the expense
falls unequally on individuals and affects differently their incomes.
When free schools take the place of private schools, the law compels
every one to contribute to education. To many individuals it is a
matter of indifference whether they pay tuition or taxes, but the
wealthy bachelor sometimes grumbles when forced to help in educating
the day-laborer's family. The average result of a certain social
policy may be right, but individuals diverge from the average and
thus have constantly a motive to attempt to change the limits of
governmental action. Happily the subject is not always viewed with
selfish eyes. The ethical and patriotic thought is not, "How will this
affect my interests?" but. "How will it affect the general interests?"
But as the question of value is always involved men are usually found
favoring or opposing the industrial and social activity of the state
according as it affects their own incomes. Thus the determination of
the sphere of the state is in large part an economic question.

Sec. 5. #Industrial revenues of governments#. The costs of government at
any stage are met in varying degrees in one of three ways: (1) from
industrial sources, (2) by borrowing and thus creating a public debt,
(3) from taxation.

(1) Receipts from industrial sources in the broad sense include all
rents from wealth owned, interest on loans made, and proceeds of sales
from enterprises conducted, by the government. In feudal times, these
were mostly obtained in the form of rents from the private domains of
kings and nobles. In many early and medieval states these sources of
receipts were adequate to the need of government; then they decreased
in many countri