Croce, pursuing the analysis initiated by Labriola, began by dissociating what seemed to him to be the vital element in historical materialism, from any intrusion of either Hegelian or positivistic metaphysics. His criticism of historical materialism as a philosophy of history and, generally, of the possibility of constructing any philosophy of history, is the first resolute step towards an anti-metaphysical conception of philosophy. Whether by metaphysics is meant the knowledge of another world of real essences, of things in themselves, beyond the objects of our immediate experience, or the creation of abstract concepts duplicating and falsifying the complex world of life, the whole trend of Croce's thought will henceforward oppose any claim on the part of these spurious philosophies, mythological or pseudo-scientific, to furnish an adequate interpretation of reality. Vico's metaphysics of human ideas, which is no metaphysics at all, because it does not postulate the existence of any reality beyond that of the spirit of man, will more and more become the model of Croce's own philosophy. That immanentism which he considers as one of the spontaneous attitudes of his mind slowly extricates itself from the ruins of his own transcendental logic, and shows itself impervious to the allurements of both Platonism and Positivism, of the ancient and the new myth. Purged of its unessential philosophical associations, historical materialism (or, more precisely, the economic interpretation of history) appeared to Croce as nothing more than a new canon or criterion of historical interpretation, fixing the attention of the historian on a mass of new data, the importance of which had not been recognized before. It was neither a new philosophy nor a new method: it could not be legitimately employed to draw conclusions on the relations between economic facts and the other facts of history, nor to reduce history itself to the operation of a few abstract laws. It was a tendency of historical thought, coinciding with the manifestation of certain objective conditions of society (the industrial revolution) and their reflexes in political thought, by which the economic element in social facts acquired a stronger relief than it had ever had in the consciousness of man. And it seemed to point, both for the historian and for the philosopher, towards the existence of a fundamental principle or form of human activity--economic activity, about the nature of which, and its relation with æsthetic, logic, and moral activity, very little had been thought and written, besides what is contained in the introductions to all classical manuals of political economy. While still insisting that history is art, that is, the representation of individual happenings, Croce was thus implicitly brought to admit of the importance of philosophy, that is, of the study of the fundamental forms or categories of human activity, for the historian.