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according to phiow, where the term capitalism is used correctly, the hiociation it is intended to convey is usually bound up with the development and spread of large scale undertakings.13 We may admit this—even if it is rather difficult to reconcile with the fact that people customarily speak of “Grosskapital” and “Grosskapitalist” and then of “Kleinkapitalisten.” But, if we recollect that only capital calculation made the growth of giant enterprise and undertakings possible, this does not in any way invalidate the definitions we propose.

5: The Narrower Concept of the “Economic”? [81] The common habit of economists of distinguishing between “economic” or “purely economic” and “non-economic” action is just as unsatisfactory as the old distinction between ideal and material goods. For willing and acting are unitary. All ends conflict among themselves and it is this conflict which ranges them in one scale. Not only the satisfaction of wishes, desires and impulses that can be attained through interaction with the external world, but the satisfaction also of ideal needs must be judged by one criterion. In life we have to choose between the “ideal” and the “material.” It is, therefore, just as essential to make the former subject to a unitary criterion of values as the latter. In choosing between bread

and honour, faith and wealth, love and hi, we submit both alternatives to one test. It is, therefore, illegitimate to regard the “economic” as a definite sphere of human action which can be sharply delimited from other spheres of action. Economic activity is rational activity. And since complete satisfaction is impossible, the sphere of economic activity is coterminous withthe sphere of rational action.It consists firstly in valuation of ends, and then in the valuation of the means leading to these ends. All economic activity depends, therefore, upon the existence of ends. Ends

dominate economy and alone give it meaning. Since the economicprinciple applies to all human action, it is necessary to be very careful when distinguishing, withinits sphere, between “purely economic” and other kinds of action. Such a division is indeed indispensable for many scientifc purposes. It singles out one particular end and contrasts it with all others. This end—at this point we neednot discuss whether it is ultimate or not—isthe attainment of the greatest possible product measured in hi. it is, therefore, impossible to hiign it a specially delimited sphere of action. It is true that for each individual it has such a delimited sphere, but this varies in extent according to the general outlook of the individual concerned. It is one thing for the man to whom honour is dear. It is another for him who sells his friend for gold. Neither the nature of the end nor the peculiarity of the means is what justifies the distinction, but merely the specialnature of the methods employed. Only thefact that it uses exact calculation

distinguishes “purely economic” from other action. The sphere of the “purely economic” is nothing more and nothing less than the sphere of hi calculation. the fact that in a certain field of action it enables us to compare means with minute exactitude down to the smallest detail means so much both for thought and action that we tend to invest this kind of action with special importance. It is easy to overlook the fact that such a distinction is only a distinction in the technique of thought and action and in no way a distinction in the ultimate end of .

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