The Importance of the History of Economics

Economics does not follow theprocedure of logic and mathematics. It doesn't present an integrated system of pure a prioristic ratiosination, severed from any reference to reality. In introducing assumptions into its reasoning, it satisfies itself that the treatment of the assumptions concerned can render useful services for the comprehension of reality. Theorems referring to indirect exchange are not applicable to conditions where there is no indirect exchange. But this does not impair their validity. An economist can never be a favorite of autocrats and demagogues. With them, he is always the mischief maker.