Economic Theory

If you refuse to take account of theory, then you have forgotten that practice is often an offspring of theory.

All men suppose what is called Wisdom to deal with the first causes and the principles of things; so that, as has been said before, the man of experience is thought to be wiser than the possessors of any sense-perception whatever, the artist wiser than the men of experience, the masterworker than the mechanic, and the theoretical kinds of knowledge to be more of the nature of Wisdom than the productive.

A theory is the more impressive the greater the simplicity of its premises is, the more different kinds of things it relates, and the more extended its area of applicability.