The principle that any social institution, and consequently any system of valuation, must be administered by a class, which will largely control its operation, is rather an obvious one. It was long overlooked, however, in political theory, at least in the theory of democracy, and is still overlooked, perhaps, in economic theory. At any rate it is a fact that pecuniary valuation is by no means the work of the whole people acting homogeneously, but is subject, very much like the analogous function in politics, to concentration in a class. Class control is exercised mainly in two ways: through control or guidance of purchasing power, and so of the demand side of the market, and through the actual administration of the business system, which gives the class in possession command of the large personal (pecuniary) values incident to this function, and the opportunity to increase these by the use, direct and indirect, of their commanding position.[68] The process of definite pecuniary valuation, the price-making function, is based upon “effective demand” or the offer of money for goods; perhaps we ought to say for consumers’ goods, as the value of producers’ goods may be regarded as secondary.[69] It is, therefore, the immediate work of those who have money to spend. Just how far spending is concentrated in a class I cannot pretend to say, but current estimates indicate that about one-fifth of the families in the United States absorb half the total income. No doubt, however, the proportion of saving in this fifth is somewhat greater, and that of spending somewhat less, than in the rest of the population.[70] In this respect pecuniary value is, on the face of it, much more the work of a restricted class than political value, in determining which all voters are nominally equal. In either case, however, it would be most erroneous to suppose that value-making power can be measured in any such numerical way. There is always a psychological process of suggestion and discussion which works underneath the market transactions. By virtue of this the power of the richer classes over values is far greater than that indicated by their relative expenditure. As people of leisure and presumptive refinement, they have prestige in forming those conventions by which expenditure is ruled. We see how cooks and shop-girls dress in imitation of society women, and how clerks mortgage their houses to buy automobiles. It is in fact notorious that the expenditure of the poor follows the fashions of the rich, unless in matters of the most direct and urgent necessity, and in no small degree even in these.