VOLUNTARY SAVING

eg

But the Treasury and the tax-payer of the futureneed only remain in doubt if they expect theprice-level reached by inflation to continue per-manently. For the national debt under theinflationary system is likely to be larger in termsof money than under the system of compulsorysavings; so that if prices subsequently fall back,the benefits of inflation will have proved illusoryeven to the Treasury .

Thus it is quite true that, in the last resort,the amount of saving, necessary to balance theexpenditure of the Government after allowingfor the yield of taxation, can always be obtainedby "voluntary" savings. But whether this is agood name for it is a matter of taste. It is amethod of compulsorily converting the appro-priate part of the earnings of the worker whichhe does not save voluntarily into the voluntarysavings (and taxation) of the entrepreneur. " Weshall depend on the voluntary system" is anotherway of saying "We shall depend on inflation to \the extent that is necessary." Sir Robert Kin-dersley in his Savings Campaign could justlyargue as follows:

" The Government needs the money. Butthis is a free country. Someone, therefore, mustsave it voluntarily. If you (and your friends)do not do so, the necessary amount will be takencompulsorily from the real value of yourearnings through the action of higher pricesand handed to the profiteer; and he will saveit voluntarily (such part as he does not pay incompulsory taxes). In this way we shall avoid