_Socialism is economically unsound._ The student of Socialism who studies--and every student of Socialism should study very carefully--the literature directed against Socialism, will encounter a number of rather confused and frequently very confusing arguments running upon "business" or "economic" lines. In nearly all of these the root error is a misconception of the nature and aim of Socialist claims. Sometimes this misconception is stated and manifest, often it is subtly implied, and then it presents the greatest difficulties to the inexpert dialectician. I find, for instance, Mr. W. H. Lever, in an article on Socialism and Business in the _Magazine of Commerce_ for October 1907, assuming that there will be no increase in the total wealth of the community under Socialism, whereas, as my fourth chapter shows, Socialist proposals in the matter of property aim directly at the cessation of the waste occasioned by competition through the duplication and multiplication of material and organizations (see for example the quotation from Elihu, p. 69), and at the removal of the obstructive claims of private ownership (see p. 65) from the path of production. If Socialism does not increase the total wealth of the community, Socialism is impossible. Having made this assumption, however, Mr. Lever next assumes that all contemporary business is productive of honest, needed commodities, and that its public utility and its profitable conduct measure one another. But this ignores the manifest fact that success in business now-a-days is far more often won by the mere salesmanship of mediocre or inferior or short-weight goods than it is by producing exceptional value, and the Kentish railways, for example, are a standing contrast of the conflict between public service and private profit-seeking. But having committed himself to these two entirely unsound assumptions, it is easy for Mr. Lever to show that since Socialism will give no more wealth, and since what he calls Labour, Capital and the Employer (_i.e._ Labour, Plant and Management) are necessary to production and must be maintained out of the total product, there will be little more, practically, for the Labourer under Socialist conditions than under the existing _régime_. Going on further to assume that the Owner is always enterprising and intelligent and public-spirited, and the State stupid (which is a quite unjustifiable assumption), he shows their share may even be less. But the whole case for the Socialist proposals, the student must bear in mind, rests upon the recognition that private management of our collective concerns means chaotic and socially wasteful management--however efficient it may be in individual cases for competitive purposes--and that the systematic abolition of the parasitic Owner from our economic process implies the replacement of confusion by order and an immense increase in the efficiency of that economic process. Socialism is economy. If the