6 ECONOMICS 



the theories of distribution. At the present time the economist as 

 well as the business man is dealing more and more exclusively with 

 the general problem of productive efficiency. The great technical 

 development of the past fifty years and the constant effort of all 

 classes of producers to secure greater economy through a more 

 efficient organization of industry are concrete evidences of the 

 subordination of distribution to production at the present time. 



" The same thought may be stated in another way by saying that 

 men are now realizing more and more clearly that the distribution of 

 wealth among producers is determined by and is dependent upon the 

 relative productive efficiency of various producers. Recognizing 

 the fact that distribution depends upon productive efficiency, wage- 

 earners are striving to increase their efficiency by means of their 

 unions; manufacturers and carriers through their consolidations, and 

 capitalists by the formation of syndicates. The labor question and 

 the trust problem are, at bottom, problems of production, and are 

 being so considered both by the practical man and by economic 

 scientists. 



" One other interesting evidence of the increasing demand for 

 productive efficiency may be seen in the rapid development of busi- 

 ness and commercial education. In Germany and certain other 

 European countries technical education has been provided by public 

 authority with excellent industrial results. In the United States, 

 private funds have thus far contributed most of the money spent in 

 the development of facilities for technical, business, and commercial 

 education; but our public school system has already begun to 

 incorporate business education into its curricula. There are numer- 

 ous evidences of the tendency to look to educational training for the 

 promotion of economic efficiency. If it be true -- and I believe it is 

 true - - that the distribution of wealth is determined primarily by 

 relative productive efficiency, and that both industrial education of 

 an elementary grade, and business education of a secondary and 

 university grade can add to the economic efficiency of men and 

 women, we may feel hopeful regarding the future welfare of society. 

 There is no doubt about our being able to increase greatly our 

 productive efficiency, and it seems to be the opinion of economic 

 philosophers to-day that increasing economic efficiency will be 

 accompanied by a progressively better distribution of the results of 

 production." 



