CONTENT OR SCOPE. The investigation of the social relations and activities connected with wealth may be divided into four stages. In the first stage we describe, classify, define, and enu merate economic phenomena. In the second we analyze and interepret these phenomena for the purpose of revealing cause and effect, of discov ering uniformities and sequences or economic laws. In investigating economic uniformities we are practically forced to certain conclusions about economic progress, and the theory of eco nomic progress determines largely our interpre tation of approximate aims and ideals: the determination of these ideals constitutes the third stage. In the fourth stage we discuss means to attain these aims and ideals. We may easily distinguish the stages in which one of these processes far outweighs in im portance all the rest. Corresponding to the first stage we have Economic History, Eco nomic Methodology. and Economic Statistics; corresponding to the second stage is Economic Theory; to the third stage, the Ethics of Po litical Economy; and to the fourth stage Applied Political Economy, often but infelicitously called the Art of Political Economy. It should be added that Economic Theory, also called Econom ies, Social Economics, Theory of Political Econ omy, etc.. is usually subdivided further into the inductive theory and the deductive theory, and the latter is frequently called hypothetical. ab stract, speculative, Pure Economics or the Pure Theory. Briefly stated, the debate over the proper scope of political economy hinges about the question whether the term political economy shall be applied to all or only to a part of these divisions. Some writers (e.g. II. von Scheel, Laveleye, and most German writers) would use the term political economy to cover all of them. The leadine English economists of the present time would use the term so as to include all except ethics and applied political economy; while the fast disappearing group of which Senior is the best example attempted to con fine the science of political economy to ab stract or hypothetical theory. This question
will be considered below, where the discussion of scope is continued in connection with that of mthml. In anticipation of that discussion. and following the usage of Adam Smith and the popular interpretation of the term, we may de fine political economy as the ordered knowlecge of the social phenomena arising out of man's ac tivity in the acquisition and use of wealth.
By wraith wr mean things possessing value. We me: r. goods and services which usually and regularly cost lobo, and which are exchangeable for •abor, \1 o moan useful things of n material nature, and personal services which satisfy hu man wants, which exist in quantities below the amounts desired, so that each unit. of them pos sesses distinct importance for us.
11Na-oily (no Ecoxowic THOUGHT. GREEcE. Creek economic thought is characterized by an exaggerated confidence in the power of the State to mold human nature, control industry, and direct the growth of society. In political thought this resulted in a striking subordination of the individual to the State; in the study of society it led to the subordination of economies to poli ties and ethics. Slavery was generally indorsed —indeed it. was regarded as indispen sable by the majority. The Creek philosophers fully understood the advantages of the division of labor, and Aristotle is generally credited with having entertained correct views upon money and advanced ideas concerning value. The Creek philosophers generally condemned interest-tak ing and entertained the traditional prejudices against trade and commerce. This brief sum mary may lie accepted as representing the opin ions predominating among those Creek writers whose works have come down to its. To be sure, there are certain qualifieations to be made to this view of Creek thought, but on the whole it is probably true that the Greeks had little or no conception of the sacred regard for the individ ual which characterizes the theory of modern individualism.