ABSTRACT
Economics, in Tracy’s theory, is the science which studies “the effects and consequences of our actions considered as means to provide for our needs of all types, from the most material to the most intellectual”. 1 Economic science then, should be distinguished from its etymological meaning of household management, and from its common meaning of carefully managing the goods in one’s possession. The term “political economy” generally meant “the science of the formation and administration of the wealth of a political society”. 2 It is true, wrote Tracy, that the science named – somewhat improperly political economy has discovered “some important truths on the effects of property, industry and the causes which favour or hinder the formation and growth of wealth”. But economics really should go back to the origin of our needs and of our power to act, for it is really the study of “the history of the use of our powers for the satisfaction of our needs”. 3 (As if to express his dissatisfaction with the term “political economy”, Tracy sometimes used the term “social economy”; however, his work was republished in 1823 under the title Traité d’économie politique.)
