This section of "On Narcissism: An Introduction" by Sigmund Freud provides an overview of the concept of narcissism and its significance in psychoanalytic theory. Freud discusses the historical development of the term, noting that it was first used by Paul Näcke in 1899 to describe a person's self-obsession with their own body. Freud then explores the clinical observations that led to the recognition of narcissism as a normal and primary aspect of human sexual development, distinct from auto-eroticism. Freud argues that narcissism is not a perversion but a normal form of libidinal investment in the ego, which can be observed in various disorders such as homosexuality and neuroses. He suggests that narcissism is a necessary intermediate stage between auto-eroticism and object-love, and that it plays a crucial role in the evolution of sexual development. The paper also delves into the distinction between "ego-libido" and "object-libido," which are central to Freud's theory. Ego-libido refers to the libidinal investment in the ego itself, while object-libido refers to the libidinal investment in external objects. Freud explains how these two types of libidinal investment interact and influence each other, particularly in the context of neurotic and psychotic disorders. Freud further discusses the implications of narcissism for understanding schizophrenia, suggesting that the withdrawal of libido from external objects in this disorder leads to megalomania and a loss of reality. He critiques the work of C.G. Jung, arguing that the libido theory remains valid and can explain the phenomena of schizophrenia. The section concludes with a discussion of the erotic life of humans, highlighting the different types of object-choice—narcissistic and anacritic (attachment)—and their implications for sexual development. Freud emphasizes the importance of understanding narcissism in both normal and pathological contexts, as it forms the basis for many psychological phenomena.This section of "On Narcissism: An Introduction" by Sigmund Freud provides an overview of the concept of narcissism and its significance in psychoanalytic theory. Freud discusses the historical development of the term, noting that it was first used by Paul Näcke in 1899 to describe a person's self-obsession with their own body. Freud then explores the clinical observations that led to the recognition of narcissism as a normal and primary aspect of human sexual development, distinct from auto-eroticism. Freud argues that narcissism is not a perversion but a normal form of libidinal investment in the ego, which can be observed in various disorders such as homosexuality and neuroses. He suggests that narcissism is a necessary intermediate stage between auto-eroticism and object-love, and that it plays a crucial role in the evolution of sexual development. The paper also delves into the distinction between "ego-libido" and "object-libido," which are central to Freud's theory. Ego-libido refers to the libidinal investment in the ego itself, while object-libido refers to the libidinal investment in external objects. Freud explains how these two types of libidinal investment interact and influence each other, particularly in the context of neurotic and psychotic disorders. Freud further discusses the implications of narcissism for understanding schizophrenia, suggesting that the withdrawal of libido from external objects in this disorder leads to megalomania and a loss of reality. He critiques the work of C.G. Jung, arguing that the libido theory remains valid and can explain the phenomena of schizophrenia. The section concludes with a discussion of the erotic life of humans, highlighting the different types of object-choice—narcissistic and anacritic (attachment)—and their implications for sexual development. Freud emphasizes the importance of understanding narcissism in both normal and pathological contexts, as it forms the basis for many psychological phenomena.