ABSTRACT

Economizing can be idealized and represented in the ultimate degree of formal perfection by means of the calculus. The first great inspiration to come to an economist was, perhaps, Quesnay's Tableau Economique, in which he saw economic society as a system of inter-organized activities, a unity in which each component process sustained and was sustained by the system as a whole. To pre-reconcile the choices of several individuals is to make these choices dependent on each other, as a unity. One such choice will be accepted only on condition that every other of the specific actions, proposed by the pre-reconciling solution, is also accepted. The choices are inter-conditional. Thus they are necessarily logically and formally simultaneous. The notion of a system of simultaneous equations is a formal abstraction, and when used as the substance of a model of the actions of an economic society, it necessarily reduces that model also to a formal abstraction.