"Precisely so. Well, now, we are in a position to appreciate how necessary a part the waste pipes played in the economic system of our forefathers. We have seen that under that system the bulk of the people sold their labor or produce to the capitalists, but were unable to buy back and consume but a small part of the result of that labor or produce in the market, the rest remaining in the hands of the capitalists as profits. Now, the capitalists, being a very small body numerically, could consume upon their necessities but a petty part of these accumulated profits, and yet, if they did not get rid of them somehow, production would stop, for the capitalists absolutely controlled the initiative in production, and would have no motive to increase accumulations they could not dispose of. In proportion, moreover, as the capitalists from lack of use for more profits should slacken production, the mass of the people, finding none to hire them, or buy their produce to sell again, would lose what little consuming power they had before, and a still larger accumulation of products be left on the capitalists' hands. The question then is, How did the capitalists, after consuming all they could of their profits upon their own necessities, dispose of the surplus, so as to make room for more production?" "Of course," said the girl Emily, "if the surplus products were to be so expended as to relieve the glut, the first point was that they must be expended in such ways that there should be no return, for them. They must be absolutely wasted--like water poured into the sea. This was accomplished by the use of the surplus products in the support of bodies of workers employed in unproductive kinds of labor. This waste labor was of two sorts--the first was that employed in wasteful industrial and commercial competition; the second was that employed in the means and services of luxury." "Tell us about the wasteful expenditure of labor in competition." "That was through the undertaking of industrial and commercial enterprises which were not called for by any increase in consumption, their object being merely the displacement of the enterprises of one capitalist by those of another." "And was this a very large cause of waste?"