5. The method of Political Economy.

The main methods of Political Economy are methods of dialectic and, first of all, the analysis and synthesis, an induction and deduction, unity of historical and logic, abstract and concrete, etc.

Analysis and Synthesis are philosophical terms denoting the processes of mentally breaking down of a whole into its constituent parts (analysis), and reconstituting a whole from its parts (synthesis). Dialectics is a unity of both analysis and synthesis. Both analysis and synthesis take part, alternately, in every stage of the cognition of a thing. Like “abstraction” and “generalisation”, both analysis and synthesis arrive at new knowledge of the thing, and both are required for an all-sided knowledge of a thing — breaking it down and identifying its various parts, aspects, and then arriving at a new understanding based on how the parts interact and merge with each other etc., and gaining a new conception of the parts.

Induction is the method of inference which draws a general conclusion from a number of specific facts. Induction suffers from the flaw that using specific facts to make a general conclusion, while a practical and natural thing for humans to do, is not philosophically correct: such judgements are the substance of prejudice. For instance, after seeing three white people who were bafoons, to use those specific facts to make the general conclusion that all white people are bafoons may be incorrect: there may be whites who are not bafoons. The important thing about induction, is that no conclusion is fixed; and it must always and continually refer back to fact, lest it become ignorance.

Deduction is the method of inference which substantiates a conclusion on the basis of a number of previously established premises by means of the application of laws of logic, rather than by drawing on experience. Induction is begins from a number of given facts and arrives at the principles exhibited in these facts, opening the possibility for deducing new facts or hypotheses. However, it should be kept in mind that cognition is impossible without both deduction and induction. Neither induction nor deduction can go more than a single step without the help of the other. Criticising formal logic, which rigidly separate Deduction and Induction, Hegel asks: “Where do the laws of logic come from? And where do the premises come from?” Deduction and induction are a unity of broadly the same nature as analysis and synthesis.

Abstract and Concrete are philosophical concepts concerned with the development of conceptual knowledge. A proper understanding of what is meant by “abstract” and “concrete” is vital to making sense of dialectics. For Hegel and for Marx, the contrast between abstract and concrete does NOT mean the contrast between ideals. Rather ‘A concrete concept is the combination of many abstractions’. A concept, such as a number or a definition, is very abstract because it indicates just one of millions of the aspects that a concrete thing has, ignoring all other aspects. Concepts are the more concrete the longer and more thorough they are described. If we say "The British working class are those who work for a wage and live in the UK", then we've made a very abstract concept. To make it more concrete is to show the many aspects of it; showing the historical circumstances of its rise and development, the state of the world it developed in, etc.