INVENTION AND PRODUCTION 243 
dissipated are thus steadily eliminated, leaving those whose use 
of goods tends to create surplus energy. Every increase of pro- 
ductive power adds to the quantity of goods consumed, and these 
if properly used augment the surplus energy of workers.” ! 
Nowhere is his recent emphasis on active adaptation so clearly 
revealed as in his criticism of his own theory of “ pleasure-pain ” 
economies. ‘I now regard this division as defective,” he says. 
“To love pleasure is a higher manifestation of life than to fear 
pain; but the pleasure of action is in advance of the pleasure of 
consumption. Action creates what pleasure uses up. This 
would divide progress into three stages: a pain economy, a 
pleasure economy and a creative economy. Each stage has its 
own mode of thought, and its own social institutions.” His new 
complete theory is thus visualized? 
Character of the 
Stage of Progress Form of Struggle Form of Control Social Bond 
1. A pain economy Race struggle Ancestral control Blood bonds 
2. A pleasure economy Class struggle Wealth control Interest bonds 
3. A creative economy Self-direction Character control = Social beliefs 
Kind of Type of 
Type of Thought Thought Limitations Philosophy Morality 
1. Theological Substance Anthropomorphic _‘ Traditional 
2. Rational Space Material Utilitarian 
3. Pragmatic Time Ideal Telic 
The importance of the active factor in securing adjustment is 
revealed in his list of checks to expenditure which tend to bring 
the family budget to an equilibrium.? His conclusion is of in- 
terest for it is his last word to date in his social philosophy. 
“Surplus promotes activity and that activity transforms the 
natural surplus into wealth. With wealth come price relations 
through which ancestral control is broken and wealth control put 
inits place. Price relations give rise to budgetary concepts. In 
the endeavor to bring the family budget to an equilibrium, 
activity is increased and consumption is put on a cultural basis 
by increasing the intensity of new wants. ‘This brings on a self- 
repression which is the essence of character building. The 
1 Theory of Prosperity, p. 15; Seager, op. cit., p. 83. 
2 “Reconstruction of Economic Theory,” Annals, American Academy Political 
and Social Science, 1912, (Supplement), p. 92. 
3 Ibid., p. 62. 
