I. The Transforming of Instinctive into Conscious Impulses

Against this conception there then arose another, that of the Physiocrats. The latter took their start from the idea: Economic prosperity does not in reality depend on the amount of money that is kept within the country; it depends on the amount that is produced out of the land by human labor—on the quantity of goods produced by exploiting the resources of Nature. In effect, it is only an apparent prosperity that is achieved by the circulation of goods in Trade and by the accumulation of money which does not increase the real Prosperity. Here you see arising, in two successive theories of economics, two altogether different points of view. And this is what I would beg you to observe. For one might well believe that once one had studied these things, it should be quite easy to say what it is that conditions prosperity, and what is the best form of public economic life. But when you see that the men who think about these things, who even make it their profession to do so, arrive in course of time at the very opposite conclusions, you will no longer say that it is quite so easy.