William Albert Samuel Hewins

“ It must be clear to every observer that the economists of the classical period, with the one exception of Adam Smith, will speedily share the fate of nearly all scientific writers. They will be forgotten, and their books will not be read. Adams Smith’s Wealth of Nations, if it has ever been, has long ceased to be a scientific text-book. Whether a modern economist accepts his views or not is of no importance. There is probably not a single chapter in the Wealth of Nations which would be thoroughly endorsed by any living economist. ”

“ Some people are of opinion that the factors to be taken account of in economic investigation are so numerous that progress on these lines is impossible. It would certainly be impossible if we had to begin de novo to construct the whole fabric of economic science. But, as we shall see, it is no more necessary to do this in the world of science than it is in the world of business or politics. There is in existence a vast store of accumulated knowledge, and few, if any, departments of economics have been left quite unilluminated by the researches of former generations. ”

“ Moreover, the study of the theory of rent has had a very great influence on all branches of economics by destroying the notion that it is possible to draw sharp lines of distinction, or deal with economic conceptions as though they were entirely independent categories. That modern economic analysis is incomparably more accurate than that of earlier times there can be no question. But the net result of the development of the doctrine of rent is that all problems in which this factor appears, and they embrace the whole range of economic theory, must apparently be treated on their merits. ”

“ When the aim of the man of affairs and the hypothesis of the economist was unrestricted competition, and measures were being adopted to realize it, general theory such as the classical economists provided was perhaps a sufficiently trustworthy guide for practical statesmen and men of business. If only people can be got to believe in them, a few abstract principles are quite enough to destroy an institution which it has taken centuries to create. ”

“ The economist must, therefore, not only be prepared to take account of the physical features of the world, the general structure and organization of the industry and commerce of different states, the character of their administration and other important causes of economic change. He must be in touch with the actual life of the community he is studying, and cultivate “that openness and alertness of the mind, that sensitiveness of the judgment, which can rapidly grasp the significance of at first sight unrelated discoveries or events.” ”

“ Every volume of records we look through contains a mass of detailed information on the economic life of England in the period we are studying. How much of it is relevant to the subject of inquiry? What is to be the principle of selection? How shall we determine the relative weight and importance of different kinds of relevant evidence? As in modern problems, so in those of past times, a man requires for success qualities quite distinct from those conferred by merely academic training and the use of scientific methods. ”

“ In all economic investigation assumptions must be made, but we must see that they are legitimate in view of the actual life and character of the community or communities which are the subject of investigation. In common with other sciences, economics makes use of “abstractions”; but if for some problems we employ symbolic processes of reasoning, we must keep clearly in view the limits of their significance, and neither endow the symbols with attributes they can never possess, nor lose sight of the realities behind them. ”

“ In practice the study of “political” economy is mainly devoted to the sphere of the State; the welfare of the individual as a member of the State, and of the State in its relation to the world, being internal aspects of the prosperity of the State itself. Economics thus includes the discussion of all the numerous factors which make life profitable, whether to the nation or to the business, or to the individual man. ”

“ The economist frankly assumes the reality of the existing world and takes men as they are, or as they have been if he is studying past times. His assumptions are based upon ordinary observation and experience, and are usually accurate in proportion to his practical shrewdness and sagacity, so that he is not interested in the speculative flights of philosophy, except in so far as they influence or have influenced conduct. In times past, and to a less extent in our own day, philosophical conceptions have formed the basis of great systems of politics and economics. ”

“ That is, original investigation of special problems has to be carried out on a more gigantic scale than any economist of the historical school ever dreamt of or the world requires, with the certain knowledge that at the end of it all the general theory will not correspond with the facts of life. For there is all the difference in the world between using a body of general theory as an indication of the factors to be considered in the study of a special problem, and undertaking special studies with a view to testing the general theory. ”

“ In general theory the inverse rule seems to prevail. There the unity of conception and aim, the firm grip of all the different lines of argument and their relation to each other, which are required, can only be given by a single brain. But no one individual can do original work over the whole field. He is lucky if he can throw new light on a few old propositions. For the rest, he can only, with the utmost caution, adopt the suggestions of other minds as qualifications of old doctrines, never feeling quite sure that he is right in doing so. ”

“ It is extremely important to consider how far the economic conceptions based upon this view of the action of men in the ordinary business of life—such, for example, as the doctrine of marginal utility—depend for their truth and relevance on the fact that in economics we are dealing with large aggregates. The earlier writers generally assumed perfect mobility of labour and capital. No economist would deliberately make that assumption now unless he were dealing with some purely theoretical problem, for the solution of which it was legitimate at some stage in the reasoning. ”

“ If we study the economy of a village, the idiosyncrasies of every individual in it are of importance. If the village is replaced by a large area, inhabited by millions, with modern facilities of communication, it is a matter of observation and experience that for the purposes of general reasoning the idiosyncrasies of individuals may be neglected. Whether such large numbers have the character of the “economic man” of the early economists matters very little. All the assumptions we require are furnished by observation of people in the mass and the larger generalizations of statistics. ”

“ The technical training of the factory or the office, the experience of business, the discharge of practical duties, necessary as they are, do not infallibly open the mind to the large issues of the modern business world, and can never confer the detailed acquaintance with facts and principles which lie outside the daily routine of the individual, but are none the less of vital importance.” Economics, therefore, under modern conditions, is not only a subject which may usefully occupy the attention of a leisured class of scientific men. ”

“ If by the “old Political Economy” we mean the methods and conclusions of certain great writers, who stood head and shoulders above their contemporaries and determined the general character of economic science, we are still under no obligation to define the attitude of the present generation with regard to them. The fact that Adam Smith, with the meagre materials of the 18th century at his disposal, saw his way to important generalizations which later research has established on a firm basis, may enhance greatly the reputation of Adam Smith, but does not strengthen the generalizations. ”

“ In the towns the division of labour had proceeded much further than in the rural districts, and there were in existence organized bodies, such as the Gild Merchant and the crafts, whose functions were primarily economic. But one of the most striking characteristics of town life in the middle ages was the manner in which municipal and industrial privileges and responsibilities were interwoven. In modern times the artisan, however well trained, efficient and painstaking he may be, does not, in virtue of these qualities, enjoy any municipal or political privileges. ”

“ Economic motives, again, are as varied as the forms of competition, and their development is coeval with that of human society. They have to be interpreted in every age in relation to the state of society, the other motives or ideals with which they are associated, the kind of action they inspire, and the means through which they operate. Apparently the same economic motives have led in the same age and in the same nation to monopoly and individual enterprise, protection and free trade, law and anarchy. ”

“ In the last generation all that has changed, and the change is of a permanent character. The struggle of the future must inevitably be between a number of great nations, more or less equally well equipped, carrying on production by the same general methods, each one trying to strengthen its industrial and commercial position by the adoption of the most highly developed machinery, and all the methods suggested by scientific research, policy or experience. ”

“ But, for the time, if we know the economic interests of nations, classes and individuals, we can tell with more accuracy than ever before how in the long run they will act. Public policy therefore requires the closest possible study of the economic forces which are moulding the destinies of the great nations of the world. In most civilized countries except England this is recognized, and adequate provision is made for the study of economic science. ”

“ How can such a huge mass of general propositions as are necessarily included in a system of economics ever be thoroughly tested by an appeal to facts? If they are not so tested, the general theory will remain a general theory, of no practical use in itself, until the end of time. ”

“ Competition, in the Darwinian sense, is characteristic not only of modern industrial states, but of all living organisms; and in the narrower sense of the “higgling of the market” is found on the Stock Exchange, in the markets of old towns, in medieval fairs and Oriental bazaars. In modern countries it takes myriads of forms, from the sweating of parasitic trades to the organization of scientific research. ”

“ In its modern form the doctrine is far too general to be serviceable without the closest scrutiny of all the facts relating to the particular case to which it is applied. To deal adequately with the numerous extensions or qualifications of these and other doctrines in the hands of modern economists would involve us in an attempt to do what we have already said is impossible except on conditions not at present realized. It is clear that in the interests of general economic theory we require a vast number of special studies before an adequate restatement can be undertaken. ”

“ This may be, in the historical sense, merely a passing phase of human progress, due to the rapid extension of the industrial revolution to all the civilized and many of the uncivilized nations of the world, bringing in its train the consolidation of large areas, a similarity of conditions within them, and amongst peoples and governments a great increase in the strength of economic motives. When the world has settled down to the new conditions, if it ever does so, we may be confronted with problems similar to those which our forefathers had to solve. ”

“ At present the language of economics is for the ordinary Englishman like a foreign language of exceptional difficulty, because he is constantly meeting with words which suggest to his mind a whole world of associations quite different from those with which economic theory has clothed them. The refinements of economic analysis, as distinguished from its broader achievements, should be reserved for special studies, in which a technical scientific terminology, specially devised, can be used without danger of misconception. ”