Adult phantasy thinking very largely consists in what is known as identification, which may be either conscious or unconscious. Of this, we shall have more to say shortly. At the moment let us trace out what should happen to the normal child as it grows older. Education and environment should be gradually convincing the child of the unreality of its phantastic thoughts and of its early world, should be inducing it to think in terms of facts and to adjust himself to these facts, instead of attempting the impossible task of adjusting these facts to suit his own phantastic conceptions of them. The method of thought which he should develop in order thus to fit himself to meet the world adequately has been conveniently termed “directive thinking.” Directive thinking is controlled thought based upon facts seen in their true perspective, and with a purpose in view which is both definite and possible. It is the very opposite of phantasy thinking, which is generally indefinite, based upon a lack of perspective, and attempts continually to obtain the fulfilment of wishes impossible of fulfilment. In directive thinking, the purpose in view must be purposive to the thinker, a change to be produced in the world, either in its happiness, its morals, its commercial prosperity or in other forms of progress or even of deterioration; or the purpose may be to effect changes in the individual’s own happiness or prosperity, or it may be directed towards a mental change in the thinker himself with no immediate idea of changes in his external surroundings. Thus a man may wish to improve his own character by eradicating a bad habit. He may do this by thinking carefully about it, by analysing the causes of the habit, by giving himself auto-suggestion in opposition to the habit. All this, even if the habit may not in the end be eradicated must be classed as directive thinking. _Directive thinking is thus obviously, controlled thinking requiring an effort of attention and concentration as opposed to phantasy thinking which knows but little control save that of desire, and little effort or concentration._ In all the business of everyday life, directive thinking must be employed; whether we are merely using our minds to decide the most trivial problem, such as the best way of eradicating weeds from the garden, or whether we are deciding upon a policy to be pursued in some great commercial or political enterprise. Every time we use our brains in directive thinking we are establishing a habit which gradually gives us power to produce changes in our environment and in the world in general. Every time we indulge in phantasy thinking we encourage the habit of living in a world of our own ideas, and we are destroying the habit which enables us to create in reality.