of ‘saving’ became nine-tenths of virtue and the growth of the cake the object of true religion. There grew round the non-consumption of the cake all those instincts of puritanism which in other ages has with- drawn itself from the world and has neglected the arts of production as well as those of enjoyment. And so the cake increased; but to what end was not clearly contemplated. Individuals would be exhorted not so much to abstain as to defer, and to cultivate the pleasures of security and anticipation. Saving was for old age or your children; but this was only in theory. The virtue of the cake was that it was never to be consumed, neither by you nor your children after you.”
This looks like a brilliant summation, and it has been quoted approvingly, but just what it means I do not know. Does anybody? What is an equitable division of wealth? The only rational interpretation of Mr. Keynes’ summary of which I can think is the idea that if national earnings had been immediately distributed everybody would have had more enjoy- ment. But such a thought overlooks the probability, nay the certainty, that by such procedure the national earnings themselves would have shriveled and perhaps vanished entirely. Ill-managed corporations have tried the plan of distributing everything immediately to their stockholders. The common experience has been failure of the corporation. In point of fact accumulated wealth as soon as possible accrues to the benefit of the stockholders in the form of increased dividends, and their beneficence spreads to and improves the condition of all workers.
The thought is expressed even by conservative
