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1、FrankH.KnightFrankKnightAuthor'sPrefaceThereislittlethatisfundamentallynewinthisbook.Itrepresentsanattempttostatetheessentialprinciplesoftheconventionaleconomicdoctrinemoreaccurately,andtoshowtheirimplicationsmoreclearly,thanhaspreviouslybeendone.Thatis,itsobjecti
2、srefinement,notreconstruction;itisastudyin"puretheory."Themotivebackofitspresentationistwofold.Inthefirstplace,thewritercherishes,inthefaceofthepragmatic,philistinetendenciesofthepresentage,especiallycharacteristicofthethoughtofourowncountry,thehopethatcareful,rig
3、orousthinkinginthefieldofsocialproblemsdoesafterallhavesomesignificanceforhumanwealandwoe.Inthesecondplace,hehasafeelingthatthe"practicalism"ofthetimesisapassingphase,eventosomeextentapose;thatthereisastrongundercurrentofdiscontentwithlooseandsuperficialthinkingan
4、darealdesire,outofsheerintellectualself-respect,toreachaclearerunderstandingofthemeaningoftermsanddogmaswhichpasscurrentasrepresentingideas.Forthefirstoftheseassumptionsafewwordsofelaborationordefensemaybeinplace,inanticipationoftheessayitself.AP.1The"practical"ju
5、stificationforthestudyofgeneraleconomicsisabeliefinthepossibilityofimprovingthequalityofhumanlifethroughchangesintheformoforganizationofwant-satisfyingactivity.Morespecifically,mostprojectsofsocialbettermentinvolvethesubstitutionofsomemoreconsciouslysocialorpoliti
6、calformofcontrolforprivatepropertyandindividualfreedomofcontract.AP.2Theassumptionunderlyingsuchstudiesasthepresentisthatchangesofthischaracterwilloffergreaterprospectofproducingrealimprovementiftheyarecarriedoutinthelightofaclearunderstandingofthenatureandtendenc
7、iesofthesystemwhichitisproposedtomodifyordisplace.Theessay,therefore,endeavorstoisolateanddefinetheessentialcharacteristicsoffreeenterpriseasasystemormethodofsecuringanddirectingcoöoperativeeffortinasocialgroup.Asanecessaryconditionofsuccessinthisendeavoritisassum
8、edthatthedescriptionandexplanationofphenomenamustberadicallyseparatedfromallquestionsofdefenseorcriticismofthesystemunderexamination.Bymeansoffirstshowi
