If, instead of these things, he gives it to productive laborers to support them during their work, he can, and naturally will, claim a remuneration from the produce. But the consumption even of productive laborers is not all of it Productive Consumption. There is unproductive consumption by productive consumers. What they consume in keeping up or improving their health, strength, and capacities of work, or in rearing other productive laborers to succeed them, is Productive Consumption. Of course, Mill's definition of productiveness will need to be revised to include those arts and sciences that deal with more abstract ideas of man, and not just of the natural elements.
Industry is limited by capital.
Goverments can create capital. The fund-holder, when paid off, would stil desire to draw an income from his property, most of which, therefore, would find its way into productive employment, while a great part of it would have been drawn from the fund for unproductive expenditure, since people do not wholly pay their taxes from what they would have saved, but partly, if not chiefly, from what they would have spent. A second fundamental theorem respecting capital relates to the source from which it is derived. It is the result of saving.