30 HOW TO PAY FOR THE WAR

along without a definite policy, following the usualmethods and rejecting new ideas.

Is there no better way? We have seen that itis physically impossible for the community as awhole to consume now the equivalent of theirincreased war effort. That is obvious. The wareffort is to pay for the war; it cannot also supplyincreased consumption. Those who make theeffort have, therefore, only two alternatives be-tween which to choose. They can forego theequivalent consumption altogether; or they can'postpone, it.

For each individual it is a great advantage toretain the rights over the fruits of his labour eventhough he must put off the enjoyment of them.His personal wealth is thus increased. For thatis what wealth is,—command of the right to post-poned consumption.

This suggests to us the way out. A suitableproportion of each man's earnings must take theform of deferred pay.

With this general principle established, the prac-tical difficulties of our task begin. If we were toapply the principle in the crudest possible wayby deferring, let us say a level 20 per cent of allincome remaining after payment of pre-war taxes,it would still be much better than the alternativeof inflation. But public opinion requires, justlyperhaps, that a deliberate plan, and particularlythat a new plan, should not merely be better thandoing nothing, but much better. A new plan isrequired to meet objections, which apply equallyto the old plan, but which in the case of the