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THE CHALLENGE OF FACTS

"committee" in a socialistic state may be expected to be.[1]

All almsgiving has the same effect, especially if it is forced by state authority. The Christian Church of the fourth and fifth centuries, by its indiscriminate almsgiving on a large scale, helped on the degeneration of the Roman state.[2] A poor-law is only another case. The poor-rates, as they become heavier, at last drive into the workhouses the poorest of those who have hitherto maintained independence and paid poor-rates. With this new burden the chance of the next section upward to maintain themselves is imperiled, and so on indefinitely.

All taxation has the same effect. It presses hardest on those who, under the conditions of their position in life and the demands which are made upon them, are trying to save capital and improve their circumstances. The heavier it becomes, the faster it crushes out this class of persons — that is, all the great middle class — and the greater the barrier it sets up against any efforts of persons of that class to begin accumulation. If the taxes have for their object to take from some and give to others, as is the case with all protective taxes, we have only a more intense and obvious action in the same direction, and one whose effects must be far greater and sooner realized. The effect of protective taxes in this country, to drive out the small men and to throw special lines of industry into the hands of a few large capitalists, has been noted often. It is only a case of the law which I am defining.

My generalization might even be made broader. It is the tendency of all the hardships of life to destroy the middle class. Capital, as it grows larger, takes on new

  1. See Taine, vol. III, book III, chapter III.
  2. Pöhlmann, p. 62.