2. The relation of political economy to socialism.—We have already referred to the influence of social problems on the classical political economy of this country. The development of J. S. Mill’s economic views from loyal adherence to Ricardo, to a reasonable socialism, cannot be regarded as representative, seeing that he has so entirely outstripped his scholars. In recent important works on economics we see indeed only a moderate recognition of the new influences, but they do not command the assent of the public as formerly, the result being that English Political Economy remains in a most unsettled problematical and unsatisfactory condition. Here again Germany leads the way. The socialism of the chair is not to any large extent really socialistic. But it includes among its representatives eminent professors and other economists, who recognise the historical and ethical sides of political economy, who go far in giving labour problems their due place in the treatment of their subject, and who have made most important concessions to the socialistic criticism of the existing society and the prevalent political economy. One of the most notable of living German economists and sociologists, Albert Schäffle, is more than historical; his great work _Bau und Leben des socialen Körpers_ is a construction of society from the evolution point of view. In the same work he has even expressed his conviction that ‘the future belongs to the purified socialism,’ though later utterances make his attitude somewhat doubtful. However that may be, he has brought to the study of social problems a combination of learning, of philosophic insight directed by the best light of his time, and of sympathy inspired by the cause of the poor man, which is not equalled by any living economist. No great living economist has been so powerfully influenced by socialist speculation.