Recapitulation: 1. Justification of Marxian economics as comparative sociological economics: 2. Historical materialism simply a canon of historical interpretation: 3. Marxian social programme not a pure science: 4. Marxism neither intrinsically moral nor anti-moral 115 CHAPTER IV RECENT INTERPRETATIONS OF THE MARXIAN THEORY OF VALUE AND CONTROVERSIES CONCERNING THEM I Labriola's criticism of method and conclusions of preceeding essays answered: His criticism merely destructive: Tendency of other thinkers to arrive at like conclusions 120 II Meaning of phrase crisis in Marxianism: Sorel's view of equivalence of value and labour mostly in agreement with view put forward above: An attempt to examine profits independently of theory of value: Is not possible: Surplus product same as surplus value 131 CHAPTER V A CRITICISM OF THE MARXIAN LAW OF THE FALL IN THE RATE OF PROFITS Interpretation here given assumes acceptance of Marx's main principles: Necessary decline in rate of profit on hypothesis of technical improvement: Two successive stages confused by Marx: More accurately a decline in amount of profit: Marx assumes that would be an increase of capital: Would be same capital and increase in rate of profits: Decline in rate of profits due to other reasons 142 CHAPTER VI ON THE ECONOMIC PRINCIPLE TWO LETTERS TO PROFESSOR V. PARETO I Need for more comprehensive definition of the economic principle: Reasons why the mechanical conception erroneous, economic fact capable of appraisement: Cannot be scale of values for particular action: Economic datum a fact of human activity: Distinction and connection between pleasure and choice: Economic datum a fact of will: Knowledge a necessary presupposition of will: Distinction between technical and economic: Analogy of logic and æsthetic: Complete definition of economic datum 159 II Disagreement (1) about method (2) postulates: (1) Nothing arbitrary in economic method, analogy of classificatory sciences erroneous: (2) Metaphysical postulate that facts of human activity same as physical facts erroneous: Definition of practical activity in so far as admits of definition: Moral and economic activity and approval: Economic and moral remorse: Economic scale of values 174 INDEX OF NAMES 187 INTRODUCTION