ABSTRACT
War means sudden and huge mobilizations in industry which overtax the "natural" mobility of free economic agents. An economic philosophy, which can assimilate the lessons, must need to be dynamic and national. The economist may attempt to ignore psychology, but it is a sheer impossibility for him to ignore human nature, for his science is a science of human behavior. So far as terminology goes, little readjustment seems to be made necessary in economic theory by the developments of psychology since the days of Jevons and Manger or even of Bentham. In a word, psychology offers a dynamic interpretation of consciousness in place of the static conception which plays so large a part in theoretical economics. There are three general ways of giving things increased power to satisfy wants: the only way covered by the customary treatment of production; the shaping, informing, and guidance of human impulses; and the maintenance of order.
