Capitalism might be defined, if we wish to be scientific, as a form of economic organization motivated by the pursuit of profit within a price structure.

A civilization is complicated, in the first place, because it is dynamic; that is, it is constantly changing in the passage of time, until it has perished.

It is clear that every civilization undergoes a process of historical change. We can see that a civilization comes into existence, passes through a long experience, and eventually goes out of existence.

The history of the last century shows, as we shall see later, that the advice given to governments by bankers, like the advice they gave to industrialists, was consistently good for bankers, but was often disastrous for governments, businessmen, and the people generally.

When goods are exchanged between countries, they must be paid for by commodities or gold. They cannot be paid for by the notes, certificates, and checks of the purchaser's country, since these are of value only in the country of issue.

Inflation, especially a slow steady rise in prices, encourages producers, because it means that they can commit themselves to costs of production on one price level and then, later, offer the finished product for sale at a somewhat higher price level. This situation encourages production because it gives confidence of an almost certain profit margin.

For years I have told my students that I been trying to train executives rather than clerks. The distinction between the two is parallel to the distinction previously made between understanding and knowledge. It is a mighty low executive who cannot hire several people with command of more knowledge than he has himself.