Understanding the Theorems of Economics

The domain of historical understanding is exclusively the elucidation of those problems which cannot be entirely elucidated by the non historical sciences. Understanding does not entitle the dern historian to assert that exorcism ever was an appropriate means to cure sick cows. Neither does it permit him to maintain that an economic law was not valid in ancient rome or in the empire of the incas. The economist must never be a specialist in dealing with any problem, he must always fix his glance upon the whole system. A statement proclaimed without such a connection is arbitrary and floats in mid air.