Economists use the categories ‘ends’ and ‘means’ in order to systematize the material of knowledge, not simply causally, but teleologically. Myrdal argues that a third category must be introduced in addition to means and ends, viz. ‘incidental effects’ or ‘by-effects.’ This chapter details the author’s basic idea that: by splitting economic processes into 1. a given initial situation 2. alternative means and 3. the hypothetical end, it should be possible to concentrate all value judgments on the third link, viz. the purpose. This process, separating value from the means and the end (creating a purely scientific discussion) leads to the core of utilitarianism. Myrdal argues for value relativism in economics.
