ts. Temperamental inability to
understand the complexities of economic life. This inability
further evidenced by the fact that, with few exceptions,
socialists themselves are absolutely incompetent as producers.
Certain popular contentions with regard to modern economic life,
urged by socialists, but not peculiar to socialism, still remain
to be considered in the following chapters.

CHAPTER XII

THE JUST REWARD OF LABOUR AS ESTIMATED BY ITS ACTUAL PRODUCTS

Modern socialists admit that of the wealth produced to-day
labour does not produce the whole, but that some part is
produced by directive ability. But they contend that labour
produces more than it gets. We can only ascertain if such an
assertion is correct by discovering how to estimate with some
precision the amount produced by labour and ability
respectively.

But since for the production of the total product labour and
ability are both alike necessary, how can we say that any
special proportion of it is produced by one or the other?

J.S. Mill's answer to this question.

The profound error of Mill's argument.

Practically so much of any effect is due to any one of its
causes as would be absent from this effect were the cause in
question taken away. Illustrations.

Labour itself produces as much as it would produce were there no
ability to direct it.

The argument which might be drawn from the case of a community
in which there was no labour.

Such an argument illusory; for a community in which there was no
labour would be impossible; but the paralysis of ability, or its
practical non-existence possible.

Practical reasoning of all kinds always confines itself to the
contemplation of possibilities. Illustrations.

Restatement of proposition as to the amount of the product of
labour.

The product of ability only partially described by assimilating
it to rent.

Ability produces everything which would not be produced if its
operation were hampered or suspended.

Increased reward of labour in Great Britain since the year 1800.
The reward now received by labour far in excess of what labour
itself produces.

In capit