CURRENT LITERATURE
SOCIALISM VERSUS CAPITALISM By A. C. Pigou Professor Pigou's contribution (Mac- millan, 4s. 6d.) to the debate summarised in his title is less academic, but not less conscientious, than those familiar with his major works would expect. He writes here for the general reader, not the expert ; and he provides not a judgement but the materials on which judgement can be based. He states his own personal position- with a. dis- arming blend of courage and modesty, but leaves it open to others to disagree with him. On balance, perfect com- petition in a laisser faire economy appears to him the ideal; but no such economy has ever existed or is ever likely to exist, since inherited inequality, lack of knowledge, monopoly, the exist- ence of unpaid costs, destroy all the Pretensions of the capitalist system to conform to the theoretical type. On the other hand the Socialist economy as exemplified in Russia carries the ex- traneous handicaps of the Slav tempera- ment, of an originally backward, ignorant and poverty-stricken people, and of a background of disastrous foreign and civil war. It probably differs from the ideal Socialist State even further than the capitalist world differs from the ideal competitive economy. As between the capitalist system as we see it and the Socialist system which we could reason- ably hope to achieve, Professor Pigou cautiously but firmly chooses the latter. It might lose something in productivity, but there is no compelling reason why it should do so. It might not be quite so adaptable to consumers' choice, but the loss need not be great ; trial and error will bring adjustment. It could avoid the worst, though not the whole, of the evils of trade fluctuations and unemploy- Ment And on the side of distribution it has everything to commend it. The needs of the majority will no longer be sacrificed to the whims of the few ; the sense of social injustice will cease to poison the air. Gradualness is neces-
nary ; but in his political testament Professor Pigou " would add, in large capitals, a final sentence : that gradual- ness implies action, and is not a polite name for standing still."
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