However, and here we return again to our main theme, we would merely be deluding ourselves if we drew such a sharp dividing line between the realm of… - Wilhelm Röpke

Consider, in this connection, the case of the ardent socialist. He finds that there is very much wrong with our world, and we all probably agree with him. His enthusiastic conclusion will be that "Capitalism" must be replaced by "Socialism." But it is safe to say that, in most cases, the socialist will find it very hard to define the one as well as the other. The idea uppermost in his mind will be that now there is "anarchy" and "jungle" and that afterwards there will be order, justice, and planning. His opponent, defending not "Capitalism" but the market economy, will explain that both theory and ample experience prove that socialism is most likely to be a bitter disappointment. All the time it is quite probable that they will talk at cross purposes because the socialist has in mind quite different problems to be solved whereas his opponent never meant the market economy to be the answer to all these problems but only to one of them, i.e., our special problem of economic order. He will say with Shaw that "no sane person refuses to wear spectacles because they do not cure a tooth-ache."

The total weight of taxation, progressive personal taxes hostile to the accumulation of wealth, the "negative saving" of hire purchase, and, above all, the constant expansion of the Welfare State, which undermines both the will and the power of the individual to practise thrift, are the principal forces militating against savings, and accordingly the immediate causes of constant inflationary pressure.

The place of any good in this scale of values is determined ultimately by the strength of the subjective demand for it.