labour of the others. We will start with
supposing that these two directors are men of equal and also of the
highest ability, and that each of the groups, under these favourable
conditions, is enabled to produce daily an output of thirty loaves. The
total output of both in this case amounts to sixty, which equally
divided yields to everybody the luxurious number of three. Let us next
suppose that the director of one group dies, that his place is taken by
a man of inferior powers, and that this group, as a consequence of his
less efficient direction, instead of producing thirty loaves can produce
no more than ten. Now, although this falling off in production has
occurred in one group only, the loss which results from it is felt by
the entire community. The total output has sunk from sixty loaves to
forty; and the members of the group which retains its old efficiency, no
less than those of the group which has lost so much of it, have to be
content, with a dividend, not of three loaves, but two. Finally, let us
suppose that, owing to a continued deterioration in management, the ten
men of whom the first group is composed are able to produce daily, not
ten loaves, but only five. That is to say, the number of loaves which
they produce comes to no more than half of the minimum they are obliged
to eat. Here it is obvious that, unless one-half of the population is to
die, it can only be kept alive by being given a supply of loaves which,
in consequence of its own inefficiency, must be taken out of the mouths
of others.

[11] A similar drama enacted itself in London more than two centuries
ago. Private enterprise established a penny post. The state killed it,
and deprived the metropolis of this service for a hundred and fifty
years.

CHAPTER VIII

THE ULTIMATE DIFFICULTY.
SPECULATIVE ATTEMPTS TO MINIMISE IT

When socialism, says Mr. Sidney Webb, shall have abolished all other
monopolies, there will still remain to be dealt with the most formidable
monopoly of all--namely, "the natural monopoly of business ability," or
"the special ability and energy with which some persons are born." The
services of these monopolists, he sees and fully admits, would be as
essential to a socialistic as they are to any other community which
desires to prosper according to modern standards. He sees and admits
also that these exceptional men will not continuously exert or even
develop their talents unless society can supply them with som