Then he adds, with no less reason:
It will be noticed how much this method differs from that of those dogmatic philosophers who talk only of rights and duties; of what it is the duty of governments to do and the right of nations to demand, etc. I do not say sententiously: men have a right to be free; I confine myself to asking: how does it happen that they are so?
In accordance with this exposition one may sum up in four lines the work that M. Dunoyer has tried to do: A REVIEW of the obstacles that IMPEDE liberty and the means (instruments, methods, ideas, customs, religions, governments, etc.) that FAVOR it. But for its omissions, the work of M. Dunoyer would have been the very philosophy of political economy.
After having raised the problem of liberty, political economy furnishes us, then, with a definition conforming in every point to that given by psychology and suggested by the analogies of language: and thus we see how, little by little, the study of man gets transported from the contemplation of the me to the observation of realities.
Now, just as the determinations of man's reason have received the name of IDEAS (abstract, supposed a priori ideas, or principles, conceptions, categories; and secondary ideas, or those more especially acquired and empirical), so the determinations of liberty have received the name of VOLITIONS, sentiments, habits, customs. Then, language, figurative in its nature, continuing to furnish the elements of primary psychology, the habit has been formed of assigning to ideas, as the place or capacity where they reside, the INTELLIGENCE, and to volitions, sentiments, etc., the CONSCIENCE. All these abstractions have been long taken for realities by the philosophers, not one of whom has seen that all distribution of the faculties of the soul is necessarily a work of caprice, and that their psychology is but an illusion.
However that may be, if we now conceive these two orders of determinations, reason and liberty, as united and blended by organization in a living, reasonable, and free PERSON, we shall understand immediately that they must lend each other mutual assistance and influence each other reciprocally. If, through an error or oversight of the reason, liberty, blind by nature, acquires a false and fatal habit, the reason itself will not be slow to feel the effects; instead of true ideas, conforming to the natural relations of things, it will retain only prejudices, as much more difficult to root out of the intelligence afterwards, as they have become dearer to the conscience through age. In this state of things reason and liberty are impaired; the first is disturbed in its development, the second restricted in its scope, and man is led astray, becomes, that is, wicked and unhappy at once.
Thus, when, in consequence of a contradictory perception and an incomplete experience, reason had pronounced through the lips of the economists that there was no regulating principle of value and that the law of commerce was supply and demand, liberty abandoned itself to the passion of ambition, egoism, and gambling; commerce was thereafter but a wager subjected to certain police regulations; misery developed from the sources of wealth; socialism, itself a slave of routine, could only protest against effects instead of rising against causes; and reason was obliged, by the sight of so many evils, to recognize that it had taken a wrong road.
Man can attain welfare only in proportion as his reason and his liberty not only progress in harmony, but never halt in their development. Now, as the progress of liberty, like that of reason, is indefinite, and as, moreover, these two powers are closely connected and solidary, it must be concluded that liberty is the more perfect the more closely it defines itself in conformity with the laws of reason, which are those of things, and that, if this reason were infinite, liberty itself would become infinite. In other words, the fullness of liberty lies in the fullness of reason: summa lex summa libertas.
These preliminaries were indispensable in order to clearly appreciate the role of machinery and to make plain the series of economic evolutions. And just here I will remind the reader that we are not constructing a history in accordance with the order of events, but in accordance with the succession of ideas. The economic phases or categories are now contemporary, now inverted, in their manifestation; hence the extreme difficulty always felt by the economists in systematizing their ideas; hence the chaos of their works, even those most to be commended in every other respect, such as Adam Smith's, Ricardo's, and J. B. Say's. But economic theories none the less have their logical succession and their series in the mind: it is this order which we flatter ourselves that we have discovered, and which will make this work at once a philosophy and a history.
% 2.—Machinery's contradiction.—Origin of capital and wages.