sociology. Sometimes in the past the mistake has been made of supposing
that economics dealt with the most fundamental social phenomena, and
even at times economists have spoken of their science as alone
sufficient to explain all social phenomena. It cannot be admitted,
however, that we can explain social organization in general or social
progress in terms of economic development. A theory of progress, for
example, in which the sole causes of human progress were found in
economic conditions would neglect political, religious, educational, and
many other conditions. Only a very one-sided theory of society can be
built upon such a basis. Economics should keep to its own sphere of
explaining the commercial and industrial activities of man and not
attempt to become a general science dealing with social evolution. This
is now recognized by practically all economists of standing, and the
only question which remains is whether economics is independent of
sociology or whether it rests upon sociology.

The view which has been presented thus far and which will be adhered to
is that economics should rest upon sociology. That economics does rest
upon sociology is shown by many considerations. The chief problem of
theoretical economics is the problem of economic value. But economic
value is but one sort of value which is recognized in society, moral and
aesthetic values being other examples of the valuing process, and all
values must express the collective judgment of some human group or
other. The problem of economic value, in other words, reduces itself to
a problem in social psychology, and when this is said it is equivalent
to making economics dependent upon sociology, for social psychology is
simply the psychological aspect of sociology. Again, industrial
organization and industrial evolution are but parts or phases of social
evolution in general, and it is safe to say that industry, both in its
organization and evolution, cannot be understood apart from the general