ABSTRACT
§ As we have stated these principles of income and its uses, they are fully applicable only to a completely self-contained economic system, i.e. to the whole world of effective economic intercourse, or to some virtually self-contained nation. When we seek to apply them to nations whose members are in close marketing relations with the members of other nations, or where considerable freedom of migration exists, modifications and retardations in the application of these principles are inevitable. An illustration is furnished by the contrast between the present condition of employment in France and in Britain. France, still a semi-industrialised country, with less inequality of incomes than Britain, a rigorously controlled growth of population, and an obstructive tariff system which makes her less dependent than most other advanced countries upon economic intercourse with outside areas, has virtually no unemployed capital and labour. Britain, more fully industrialised, dependent upon outside markets for essential foods and many raw materials, and for the disposal of her growing output of manufactures, and with a still growing population, is confronted with an apparently insoluble problem of unemployment.
