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“economic” as a special department of the rational and within that to discover still another sharply defined department, the “purely economic,” is no fault of the analytical apparatus employed. There can be no doubt that great subtlety of analysis has been concentrated on this problem, and the fact that it has not been solved clearly indicates that the question is one to which no satisfactory answer can be given. The sphere of the “economic” is plainly the same as the sphere of the rational: andthe sphere of the “purely economic” is nothing but the spherein which hi



calculation is possible. [82] In the last resort the individual can acknowledge one end, and one end only: the attainment of the greatest satisfaction. This expression includes the satisfying of all kinds of human wants and desires, regardless of whether they are “material” or immaterial (moral). In the place of the word “satisfaction” we could employ the word “happiness,” had we not to fear the misunderstandings, for which the controversy on Hedonism and Eudaemonism



was responsible. Satisfactionis subjective. Modern social philosophy has emphasized this so sharply incontrast to former theories that there is a tendency to forget that the physiological structure of mankind and the unity of outlook and emotion arising from tradition create a far-reaching similarity of views regarding wants and the meansto satisfy them. It is precisely this similarity of views which makes society possible. Becausethey have common aims, men are able to live together. Against this fact that the majority of ends (and those the most important) are common to the great mhi of


mankind, the fact that some ends are only entertained by a few is of subordinate importance. The customary division between economic and non-economic motives is, therefore, invalidated by the fact that on the one hand, the end of economic activity lies outside the range of economics, and on the other, that all rational activity is economic. Nevertheless, there is good justification for separating “purely economic” activities (that is to say, activity susceptible of valuation in hi) from all other forms of activity. for, as we have already seen, outside the sphere of hi calculation there remain only intermediate ends which are capable of evaluation by immediate inspection: and once this sphere is left, it is necessary to have recourse to such judgments. It is the recognition of this necessity which provides the occasion for the distinction we have been


discussing. If, for example, a nation desires to make war, it is illegitimate to regard the desire as necessarily irrational because the motive for making war lies outside those customarily considered as “economic”—as might be the case, e.g. with wars of religion. If the nation decides on the war with complete knowledge of all the facts because it judges that the end in view is more important than the sacrifice involved, and because it regards war as the most suitable means of obtaining it, then war cannot be regarded as irrational. It is not necessary at this point to decide whether this supposition is ever true or if it ever can be true. It is precisely this which has to be examined when one comes to choose between war and peace. And it is precisely with a view to introducing clarity into such an examination that the distinction we have been discussing has been introduced. [83] [84] CHAPTER 6: The Organization of Production Under Socialism? 1: The Socialization of the Means of Production?






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