Currency question -- Great Britain; Finance -- Great Britain; World War, 1914-1918 -- Economic aspects -- Great Britain
The evil attached to this system is obvious enough. It amounts to a
tax on the general consumer in proportion to his consumption, and so
it lays the sacrifice on the shoulders of those least able to bear it.
No Government would have the courage to impose such a tax openly and
frankly. All the warring Governments in varying degrees have used this
roundabout device of imposing it, very likely being quite unaware
of the fraud on the consumer that they were perpetrating. Our own
Government, in fact, having first added by this process to a rise in
the price of bread, then reduced it by a special subsidy--a pleasant
touch of Alice in Wonderland finance. This mode of taxing by raising
prices hits, of course, all those who live on fixed incomes and
salaries and wages. Those who can strike, or take more out of the
consumer, can evade it, and so it falls on the weakest shoulders and
incidentally produces friction, discontent and dangerous suspicion.
But even it works at the time when it happens. Each creation of new
buying power gives the Government, for the moment, control of so much
in goods and services at the expense of the consumer; but when once
the new buying power has been distributed by the State's payments it
is in the hands of the nation as a whole. If the process ceased, the
nation would still have control of the whole of its output, which is
its income, though the injustice involved, to those who are not strong
enough to resist the effects of higher prices, would continue.
Public-domain text, read in full here on John Shaqi.
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