POLITICAL ECONOMY CHAPTER I DEFINITION. METHOD. SCHOOLS I. DEFINITION OF POLITICAL ECONOMY Definition and Explanation. There are as many definitions of Political Economy as there are treatises on the subject. It would be useless and confusing to detail them all. It is essential, however, to formulate some definition, which may explain the view we are going to take of the science. A definition of a science may be arrived at through the consideration of the subject matter of the science. Now, some economists conceive that the subject matter of the study of Political Economy is restricted to wealth and the processes by which wealth is produced, consumed, and distributed. They do not take account of man or of society or of the higher interests of the moral order. They formulate their definition of the science in accordance with this view. Other economists conceive the subject matter of Political Economy to embrace human activity in its relation to the wealth-producing factors of the world. They hold that the activity of man as well as the end of that activity comes within the scope of the science. We take this second view. We consider that Political Economy has to do not only with the mere concrete, material things that enter into the science, but also with the personalities of the members of society whose activity is exercised on these concrete, material things. And from this point of view of the subject matter of Political Economy, we formulate the definition : Political Economy is the science that establishes the laws of human activity with reference to the material interests of society. (Cf. Antoine, Cours d'économie sociale, p. 6.) Political Economy a Science. A science is defined as a systematic body of knowledge gained by observation, experiment, and reasoning. Now, Political Economy seeks after knowledge of wealth, of its production, distribution, and consumption. It makes use of observation, observing the conduct of various peoples in their efforts to acquire wealth; observing the various agents, whether moral or physical, that influence the increase or decrease of wealth; observing the various factors, land, labor, capital, exchange, social organizations, money, trade, property, and the correlations that exist among them. Political Economy does not deliberately experiment, but there is constant experiment going on among nations. History is filled with the experiments made in the past by the several nations in their efforts after material success. From this observation and this experimenting, Political Economy deduces conclusions which have all the force of laws. Thus, Political Economy is a science. But it may be said that the laws of Political Economy are not laws at all. Man and man's will endowed with the gift of freedom enter into the subject of Political Economy, and hence there can be established no fixed laws, no laws that will have any certitude, no laws on which one can hold anything certain for the future. There will always be variation and uncertainty when there is freedom of action. Here we must explain. The laws deduced by Political Economy may be of three orders: 1. Laws that affect man as a rational being destined to a higher life of a supernatural order; that regard the free acts of man and define the scope of their activity within the limits of the moral code. These laws will have absolute metaphysical certitude. |