Professor Clark's point of view in his _Distribution of Wealth_ and that of his earlier _Philosophy of Wealth_, and I must confess my preference for the earlier point of view. In saying this, of course, I am far from impeaching the masterly economic analysis which the later book contains--rather, I join heartily in the general estimate which counts that book as of altogether epoch-marking significance. My point is, rather, as will be indicated more fully in the chapters on the relation between value-theory and price-theory, that the presuppositions and significance of such a study as Professor Clark's need clarification and interpretation in the light of a theory of value which takes account of the rich complexity of social life. Professor Joseph Schumpeter, of Vienna, carries out economic abstractionism to its logical limits, both in "statics" and in "dynamics." For an estimate of his statics, _vide_ Professor Alvin S. Johnson's review of Schumpeter's _Das Wesen und der Hauptinhalt der theoretischen Nationaloekonomie_ (Leipzig, 1908), in the _Journal of Political Economy_, 1909, pp. 363 et seq. His dynamics is also to be "_reinwirtschaftlich_." An essay in economic dynamics, the introduction to which sets forth his general point of view, appears in the Austrian _Zeitschrift fuer Volkswirtschaft_, etc., 1910, under the title, "Das Wesen der Wirtschaftskrisen." In this Professor Schumpeter narrows, by a process of exclusion, the conception of what would constitute a "pure economic" explanation of crises virtually to a pinpoint--and then fails to carry out his program of giving us a "_reinwirtschaftlich_" theory. For, in order to get any _periodicity_ into his economic movement, he is obliged to bring in, from the field of sociological theory, the factor of _imitation_--he does not use the term, imitation, though he does use the verb, "_kopieren_." (_Vide_ esp. pp. 298-99.) Professor Schumpeter very explicitly recognizes the existence of factors other than the "_reinwirtschaftlich_," but counts them as "external" factors. [172] Cf. Professor Marshall's discussions in his sections on economic law and method, and Professor Davenport's classification of the factors in the economic environment (_Value and Distribution_, pp. 514-15).