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1、FrankH.KnightFrankKnightAuthor'sPrefaceThereislittlethatisfundamentallynewinthisbook.Itrepresentsanattempttostatetheessentialprinciplesoftheconventionaleconomicdoctrinemoreaccurately,andtoshowtheirimplicationsmoreclearly,thanhaspreviouslybeendone.Thatis,itsobjectisre
2、finement,notreconstruction;itisastudyin"puretheory."Themotivebackofitspresentationistwofold.Inthefirstplace,thewritercherishes,inthefaceofthepragmatic,philistinetendenciesofthepresentage,especiallycharacteristicofthethoughtofourowncountry,thehopethatcareful,rigoroust
3、hinkinginthefieldofsocialproblemsdoesafterallhavesomesignificanceforhumanwealandwoe.Inthesecondplace,hehasafeelingthatthe"practicalism"ofthetimesisapassingphase,eventosomeextentapose;thatthereisastrongundercurrentofdiscontentwithlooseandsuperficialthinkingandarealdes
4、ire,outofsheerintellectualself-respect,toreachaclearerunderstandingofthemeaningoftermsanddogmaswhichpasscurrentasrepresentingideas.Forthefirstoftheseassumptionsafewwordsofelaborationordefensemaybeinplace,inanticipationoftheessayitself.AP.1The"practical"justificationf
5、orthestudyofgeneraleconomicsisabeliefinthepossibilityofimprovingthequalityofhumanlifethroughchangesintheformoforganizationofwant-satisfyingactivity.Morespecifically,mostprojectsofsocialbettermentinvolvethesubstitutionofsomemoreconsciouslysocialorpoliticalformofcontro
6、lforprivatepropertyandindividualfreedomofcontract.AP.2Theassumptionunderlyingsuchstudiesasthepresentisthatchangesofthischaracterwilloffergreaterprospectofproducingrealimprovementiftheyarecarriedoutinthelightofaclearunderstandingofthenatureandtendenciesofthesystemwhic
7、hitisproposedtomodifyordisplace.Theessay,therefore,endeavorstoisolateanddefinetheessentialcharacteristicsoffreeenterpriseasasystemormethodofsecuringanddirectingcoöoperativeeffortinasocialgroup.Asanecessaryconditionofsuccessinthisendeavoritisassumedthatthedescriptiona
8、ndexplanationofphenomenamustberadicallyseparatedfromallquestionsofdefenseorcriticismofthesystemunderexamination.Bymeansoffirstshowi
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