Liberals were bound to apply themselves to the new conditions in a new way, and it savours of pedantry to accuse Liberal economists of 1906 of having departed from the principles of Liberal economists of 1846. Paradoxical as it may appear to say that a positive policy of constant interference is the same as a negative policy of constant abstention, it is true that the mental habit at the back of the one is identical with that at the back of the other. Both aim at emancipating the individual from the things which prevent him from developing his natural capacities. The Manchester School saw only the fetters which directly impeded him. The modern Liberal sees also the want of the positive aids without which he is only half free. "Of all the obstacles which obstruct men's advance towards good living, and of all the evils with which politics can help to deal, there is no obstacle more formidable and no evil more grave than poverty.... Our first principle leads clearly and directly to a policy of social
reform. Whoever admits that the duty of the State is to secure, so far as it is able, the fullest opportunities to lead the best life, cannot refuse to accept the further proposition, that to lessen the causes of poverty and to lighten its effects are essential parts of a right policy of State action."[[352]] Poverty cripples the individual in many ways. It deprives him of mobility, so that he cannot travel freely in search of employment. It prevents him from accumulating reserves for times of emergency, so that a depression in trade or an illness of a month's duration may drive an honest and industrious man with his wife and family to the workhouse, and make it impossible for him ever again to resume his place in the ranks of independent labour. It disables him from saving enough to keep himself in his old age, and thus makes him either an additional burden on his children or a charge upon the ratepayers. If bad enough, it permanently reduces his bodily, mental, and moral efficiency, stunts his faculties, prevents the full development of his children, and creates disease, vice, and crime in himself and his descendants. The diseases, the temporary losses of employment, and the fluctuations in income which, to a man of substantial means, may never be, and cannot immediately be disastrous, often involve in the case of the ordinary wage-earner, the complete destruction of everything which makes life worth living. No one who seriously believes that it is the duty of society to secure freedom of growth to every one of its members can doubt that it is its duty to mitigate, so far as it is able, those consequences of poverty which no degree of thrift, enterprise, or fortitude can avert.
To this end the economic reforms of the new Liberalism have been directed. The Labour Exchanges Act did not furnish work for all. It provided facilities for obtaining work for all who sought for it. The workman is no longer left to scramble about for fresh employment. He goes to a public office, where he learns what posts are vacant, and is put in touch with those who may be willing to employ him. No man can now complain that because he cannot afford to travel in search of work, or to delay
for more than a day or two before he finds it, he has suffered a permanent deterioration in health or character. If this Act can eliminate the evils of casual and irregular labour, it will have enormously increased individual liberty for growth.[[353]] The Old Age Pensions Act removed from the shoulders of working-class families what was to many an intolerable burden. Before the Act came into force some thousands of men and women, from no cause but the lapse of time, became incapable of supporting themselves. The alternatives were the workhouse and the generosity of their children. The first meant a loss of independence for themselves, the second a fetter upon the freedom of their relations. In the absence of sickness requiring hospital treatment, the pension of five shillings a week is generally sufficient to maintain the dignity of the pensioner and the efficiency of the children. The Workmen's Compensation Act, extending Mr. Chamberlain's Acts of 1896 and 1900, insures the working people against accident as the Old Age Pensions Act insures them against age, and the Insurance Act against sickness and unemployment due to causes beyond their control. So the Act providing for the feeding of necessitous children in public schools aims at preventing the permanent deterioration of body and character which is produced by inadequate nourishment in the early years of life. So the Wage Boards Act and the Miners' Minimum Wage Act established machinery for fixing a wage in certain employments which, having regard to the circumstances of each trade, would insure that the wage-earner should enjoy a reasonable standard of health and comfort. All these measures are based upon the same principle, that absolute liberty of the individual meant the degradation, if not the destruction, of many individuals who were poor. There can be no equal chance of growth so long as accidents which cannot be averted, by any effort of the individual, may permanently impair his natural capacity. Social reform is
justified as a national army is justified. It is a system of common organization for the purpose of common protection. What Mr. Churchill said of insurance may be said of all these economic projects: "I think it is our duty to use the strength and the resources of the State to arrest the ghastly waste, not merely of human happiness, but of national health and strength, which follows when a working man's home, which has taken him years to get together, is broken up and scattered through a long spell of unemployment, or when, through the death, the sickness, or the invalidity of the bread-winner, the frail boat in which the fortunes of the family are embarked founders, and the women and children are left to struggle helplessly on the dark waters of a friendless world."[[354]] The conception of society is no longer that of an extended procession, the strongest pushing on to the full limit of their powers, while the country to the rear is strewn with the sick and injured. It is that of a compact army, every man of which has to be brought in, with a sufficient organization of waggons and ambulances to pick up all the stragglers.
This elaboration of the system of protection is not inconsistent with such competition as is necessary for the development of character, and for the production of the wealth which is so distributed among the members of society. It is not Socialism. It is not a system of doles. It removes only some of the risks of failure, and only those which are beyond individual control. No man is made less thrifty because at the age of seventy he will receive five shillings a week. No man works the better for knowing that if he is ever ill for a month he and his family will never be free again, or will work the worse for knowing that his home will be kept together until he is able once more to support it by his own exertions. No woman gets any virtue out of working fifteen hours a day for seven days a week, with the knowledge that even then she will not earn enough to keep herself in food and clothing without recourse to charity or prostitution, and her character will not be deteriorated when a
level is fixed below which her wages cannot fall. The benefit of competition remains. The disasters inevitably attendant on it are averted. The poorer people no longer wrestle on the brink of an unfenced precipice. "I do not want to see impaired the vigour of competition, but we can do much to mitigate the consequences of failure. We want to draw a line below which we will not allow persons to live and labour, yet above which they may compete with all the strength of their manhood. We want to have free competition upwards; we decline to allow free competition to run downwards. We do not want to pull down the structures of science and civilization, but to spread a net over the abyss."[[355]] "It is clear that the unlimited and uncontrolled struggle of wages spells anarchy almost as painful in its effects as the unlimited and uncontrolled competition of physical force in our streets and highways. What is to be the remedy? What, using the expression in its broadest sense, appears to be the solution—whether through Parliament, local boards, or an independent Commission—to which we are heading? A Plimsoll line for labour as well as for ships; a line above which the ship is not to sink with its burden when it puts out to sea; a line to limit with human lives on land as with those 'who go down to the sea in great ships,' the extent of peril and suffering to which the worker is to be liable. Not to abolish competition any more than competition has been abolished in ships. Competition will always be powerful enough. But to limit the strife—to fix a ring round the prize-fight—to protect the vital parts from the blows of the combatants."[[356]] These statements reconcile the old individualism with the new. Individual growth can only take place in competition. But it is not necessary that failure in competition should be mortal. The struggle of competition is to go on. But it is not to go on to the death. Economic society is to be converted into a gigantic Trade Union,[[357]] based upon the
belief that the highest good of the individual can only be secured in co-operation with his fellows, and limiting his freedom only in so far as it is necessary to secure freedom to his associates.
It is obvious that this new economic Liberalism has borrowed largely from Socialism, and it has one character in common with Protection. Once we admit that it is right for the State to interfere with economic freedom, we have advanced one step on the road which leads towards the nationalization of industry and towards the regulation of production by tariffs. The difference between Social Reform and Tariff Reform is nevertheless clear. Social Reform operates directly, only where it is needed, and without substantially interfering with any individual's enjoyment of life. Tariff Reform, if it can destroy poverty at all, can only destroy it indirectly by giving higher profits to the employer, who may or may not share his increased gains with his workpeople. Its operation is also entirely capricious, it can only apply to industries which suffer from foreign competition, and cannot touch those many underpaid forms of employment in which such competition cannot or does not in fact exist. Finally, as it can only operate by raising prices, it can only give benefits to one class of labour by imposing burdens upon another. It has only one certainty, the increase of prices, with the consequent increase of profits and rents. The benefits to be obtained from it by the poor are vague, must be confined to one section only, and cannot be got by that except at the cost of those which are differently situated.
The resemblance between Social Reform and Socialism is much more real. The sympathies and the objects of the two are not dissimilar, though their practical proposals are essentially different. Socialism, so far as it is ever expressed in definite terms, makes a logical application of a general formula. Private ownership of the means of production, distribution, and exchange means a combination of the owners of capital against the wage-earners to the injury of the class which is economically the weaker of the two. Therefore society as a whole must take possession of industrial capital, production for use must be substituted for