Croce attempts to find a solution by pointing out that the society which Marx is describing is not this or that actual society, but an ideal, in the sense of a hypothetical society, capitalist society as such. Marx has much to say of the development of capitalism in England, but he is not primarily concerned to give an industrial history of England or of any other existing society. He is a scientist and deals with abstractions or types and considers England only in so far as in it the characteristics of the abstract capitalist society are manifested. The capitalism which he is analysing does not exist because no society is completely capitalist. Further it is to be noticed that in his analysis of value Marx is dealing with objects only in so far as they are commodities produced by labour. This is evident enough in his argument. The basis of his contention that all value is 'congealed labour time' is that all things which have economic value have in common only the fact that labour has been expended on them, and yet afterwards he admits that there are things in which no labour has been expended which yet have economic value. He seems to regard this as an incidental unimportant fact. Yet obviously it is a contradiction which vitiates his whole argument. If all things which have economic value have not had labour expended on them, we must look elsewhere for their common characteristic. We should probably say that they all have in common the fact that they are desired and that there is not an unlimited supply of them. The pure economist finds the key to this analysis of value in the consideration of the laws of supply and demand, which alone affect all things that have economic value, and finds little difficulty in refuting Marx's theory, on the basis which his investigation assumes. A consideration of Marx's own argument forces us therefore to the conclusion that either Marx was an incapable bungler or that he thought the fact that some things have economic value and are yet not the product of labour irrelevant to his argument because he was talking of economic value in two senses, firstly in the sense of price, and secondly in a peculiar sense of his own. This indeed is borne out by his distinction of value and price. Croce developing this hint, suggests that the importance of Marx's theory lies in a comparison between a capitalist society and another abstract economic society in which there are no commodities on which labour is not expended, and no monopoly. We thus have two abstract societies, the capitalist society which though abstract is very largely actualised in modern civilisation, and another quite imaginary economic society of unfettered competition, which is continually assumed by the classical economist, but which, as Marx said, could only exist where there was no private property in capital, _i.e._ in the collectivist state.