Thus we seem to be on the verge of an expansion of welfare economics into something like a social science of ethics and politics: what was intended t… - Kenneth E. Boulding

There is reason for this shift of emphasis from any actual price to a hypothetical 'equilibrium' price. It is usually more interesting to know where a train is going than to know exactly where it is at any moment. The 'equilibrium' position of any price, wage, firm, industry, or system is the position toward which it is tending. The importance of equilibrium analysis, then, is that it enables us to discuss the directions of change. If a train is in New- York and its 'equilibrium' position is in Chicago, we are reasonably confident that the general direction of its motion will be westward, even if it unaccountably decides to travel north for the first hundred and fifty miles.

The idea of knowledge as an improbable structure is still a good place to start. Knowledge, however, has a dimension which goes beyond that of mere information or improbability. This is a dimension of significance which is very hard to reduce to quantitative form. Two knowledge structures might be equally improbable but one might be much more significant than the other.

It is important to realize that the exercise of any skill depends on the ability to create an abstract system of some kind out of the totality of the world around us. For instance, the carpenter is not interested in wood as a biological or chemical entity. He is sensitive to many of its grosser physical properties but not to many subtler ones. The wood of a carpenter is not the real — that is, the complete substance — but merely wood as a material on which the carpenter can exercise his skill.