CONSUMPTION 125 



problem of the permanent maintenance of a high standard of living is, 

 in final analysis, the problem of rationalizing the high standard and 

 making it efficient. Otherwise it will sooner or later be driven out by 

 a lower standard. This is also the problem of civilization, for, unless 

 / this problem of rationalizing the high standard of living can be worked 

 out, so that it can hold its own against low standards, then, as soon 

 as we have exhausted the native resources of our continent and Euro- 

 pean races have lost their market for their manufactures, our civili- 

 zation must sink back to the condition of all old civilizations, where 

 the mass of the people live on the minimum of subsistence. When, 

 therefore, we begin to take the long look ahead, we shall find that the 

 problem of the consumption of wealth is the most fundamental of 

 all economic problems. 



How then can an American standard of living defend itself against 

 displacement by a cheaper standard ? The only answer is : by becom- 

 ing a rational and efficient standard instead of merely an expensive 

 standard. That is to say, if the increased expenditure of the American 

 farmer's family can be made to yield returns in greater efficiency, 

 greater intelligence, greater mental alertness, more exact scientific 

 knowledge and calculation, then the American farmer will not be 

 displaced by the foreigner. But if the rising cost of living for the 

 American farm family is due to a mere demand for luxury, for expen- 

 sive vices, and for ostentation, then there is no power on earth which 

 will protect his standard of living. Such a farmer is handicapped in 

 competition with the more simple-minded foreigner, and the latter 

 will offer such prices for land as the former will not be able to pay. 

 Being unable to maintain a family on such a standard, this type of 

 American farmer will sacrifice his desire for a family, will have few 

 children or none at all, and in a few generations will disappear alto- 

 gether. The change in the characteristics of our rural population is, 

 from the point of view just discussed, merely a phase of the universal 

 struggle among standards of living, and, here as elsewhere, efficiency 

 wins. Whether we like it or not, this struggle is going to continue, 

 and the victory is going to fall on the side of efficiency. The sooner 

 we accept this fact, and make up our minds to adjust ourselves to it, 

 the better it will be for us. 



