The Kinetic Theory of Economic Crises 13 



nent, has produced upon the mind an effect of distorted per- 

 spective which is only too likely itself to be permanent. 1 



It would be idle to claim that the static logic, of which an 

 example has just been given, could or should be dispensed with. 

 An inspection of all static sections of the social material is a 

 prerequisite to further economic investigation. The mind be- 

 comes trained in rapidly passing from section to section. A mind 

 that has acquired this facility has attained to what we call good 

 judgment; all the artificial static propositions are become so fa- 

 miliar to it that it does not object to move at an instant's notice 

 in any direction on a reasonable suggestion, and is not conscious 

 of any considerable resistance necessary to be overcome in order 

 to reinspect one of the multitudinous sections. The prejudiced 

 person refuses to adapt his thoughts to circumstances ; the 

 trained mind passing quickly from section to section obtains 

 a pretty good general view and is enabled to correct one exag- 

 geration by another. As already stated, this appears to be the 

 mechanism of good judgment as exhibited by the ordinary trained 

 thinker; it often enables him to silence the practical man in 

 argument. 



The purely kinetic method, on the other hand, will naturally 

 seek new categories, and its use will evolve new theories. Some 

 of the most kinetic effects, however, are produced by adherence 

 to the old categories. Such adherence results in what may be 

 called a partial or quasi-kinetic method. The best example per- 

 haps is that of Professor Alfred Marshall in his Principles of 

 Economics, and yet his treatment is so kinetic that it produces 

 upon the mind as much of the satisfying effect of motion as those 

 writers who have applied kinetic conceptions to newer categories. 2 

 The desired effect is produced by the systematic employment of 

 the method of equilibria and differentials — a method that at once 



a This statement is made in the full knowledge that Mill puts in a saving 

 clause by supposing the country to be "temporarily" undersold. 



2 The question at issue between static and kinetic methods appears to be 

 similar to the question whether political economy is an evolutionary science. 

 Professor Veblen credits Professor Marshall with some evolutionary quali- 

 ties, but hardly with sufficient, if we take into account bk. V, ch. II, sees. 4-6, 

 and especially the concluding note. The Preconceptions of Economic Science 

 III, Quar. Jour, of Economics, February, 1900, p. 262, sqq. 



'3 



