the field of authority
that one human being may exercise over another, it might be supposed
that the members of the plutocratic class would pause at this point and
cease their efforts to increase power. But the owners cannot pause! A
force greater than their wills compels them to go on at an ever growing
speed. Within the vitals of the economic system upon which it subsists
the plutocracy has found a source of never-ending torment in the form of
a constantly increasing surplus.

2. _The Knotty Problem of Surplus_

The present system of industry is so organized that the worker is always
paid less in wages than he creates in product. A part of this difference
between product and wages goes to the upkeep and expansion of the
industry in which the worker is employed. Another part in the form of
interest, dividends, rents, royalties and profits, goes to the owners of
the land and productive machinery.

The values produced in industry and handed to the industrial worker or
property owner in the form of income, may be used or "spent" either for
"consumption goods"--things that are to be used in satisfying human
wants, such as street car transportation, clothing, school books, and
smoking tobacco; or for production goods--things that are to be used in
the making of wealth, such as factory buildings, lathes, harvesting
machinery, railroad equipment. Those who have small incomes necessarily
spend the greater part for the consumption of goods upon which their
existence depends. On the other hand, those who are in receipt of large
incomes cannot use more than a limited amount of consumption goods.
Therefore, they are in a position to turn part of their surplus into
production goods. As a reward for this "saving" the system gives them
title to an amount of wealth equal to the amount saved, and in addition,
it grants an amount of "interest" so that the next year the recipient of
surplus gets the regular share of surplus, and beside that an additional
reward in the form of interest. His share of the surplus is thus
increased. That is, surplus breeds surplus.

The workers are, for the most part, spenders. The great bulk of their
income is turned at once into consumption goods. The owners in many
instances are capitalists who hold property for the purpose of turning
the income derived from it into additional investments.

Could the worker buy back dollar for dollar the values which he produces
there would be no surplus in the fo