But although we regard the case of the capitalist employer as relatively negligible, and although we prefer to concentrate our attack on the least defensible side of the capitalist system--and already the State recognises that unearned incomes should pay a larger proportion in income-tax, that property which passes at death, necessarily to those who have not earned it, should contribute a large quota to the public purse, and that unearned increment on land should in part belong to the public--that does not mean that we have any tenderness for the entrepreneur. Him we propose to deal with by the favourite Fabian method of municipalisation and nationalisation. We take over his "enterprise," his gasworks and waterworks, his docks and trams, his railways and mines. We secure for the State the profits of management and the future unearned increment, and we compensate him for his capital with interest-bearing securities. We force him in fact to become the idle recipient of unearned income, and then we turn round and upbraid him and tax him heavily precisely because his income is unearned! If there is any special tenderness in this treatment, I should prefer harshness. To me it seems to resemble the policy of the wolf towards the lamb.[54]

I will proceed with quotations from Mr. Barker, because the view of a historian of thought is weightier than anything I could say.

The History of the Fabian Society — Part 149

"But collectivism also demands in the second place expert government. It demands the 'aristocracy of talent' of which Carlyle wrote. The control of a State with powers so vast will obviously need an exceptional and exceptionally large aristocracy. Those opponents of Fabianism who desire something more revolutionary than its political 'meliorism' and 'palliatives' accuse it of alliance with bureaucracy. They urge that it relies on bureaucracy to administer social reforms from above; and they conclude that, since any governing _class_ is anti-democratic, the Fabians who believe in such a class are really anti-democratic. The charge seems, as a matter of fact, difficult to sustain. Fabians from the first felt and urged that the decentralisation of the State was a necessary condition of the realisation of their aim. The municipality and other local units were the natural bodies for administering the new funds and discharging the new duties which the realisation of that aim would create. 'A democratic State,' Shaw wrote, 'cannot become a Social Democratic State unless it has in every centre of population a local governing body as thoroughly democratic in its constitution as the central Parliament.' The House of Commons he felt must develop 'into the central government which will be the organ of federating the municipalities.' Fabianism thus implied no central bureaucracy; what it demanded was partly, indeed, a more efficient and expert central government (and there is plenty of room for that), but primarily an expert local civil service in close touch with and under the control of a really democratic municipal government. It is difficult to say that this is bureaucracy or that it is not desirable. Many men who are not Fabians or Socialists of any kind feel strongly that the breathing of more vigour and interest into local politics, and the creation of a proper local civil service, are the great problems of the future.

The History of the Fabian Society — Part 149