Alfred Marshall is a well known economist. He was behind Smith and for him all the way, approximately hundred twenty years after Smith's book on economics, Alfred in his book "Principles of Economics" published in 1890 placed emphasis on human activities or human welfare rather than on wealth. Marshall defines economics as;
"Economics is the study of mankind in the ordinary business of life. It examines that part of individual and social action which is most closely connected with attainment and use of the material requisites of well-being".
1. Study of Ordinary Man; According to Alfred Marshall economics is the study of an ordinary man who lives in society. It is not concerned with the lives of only rich persons or who is cut away from the society.
2. Economics is not useless study of Wealth; Economics does not regard wealth as to be all and end-all of economics activities wealth is not primary importance. It earned only for promoting human welfare. Economics is studied to analyzed the causes of material prosperity of individuals and nations.
3. Economics as a social Science; It does not study the behavior of isolated individuals but the actions of persons living in society. When people live together, they interact and cooperate to work at firms, factories, shops and offices to produce and exchange goods and services. The problems about these activities are studied in economics.
4. Study of Material Welfare; According to Alfred Marshall, Economics studies only material requisites of well-being or causes of material welfare. It is cleared from the definition that it is materialistic aspects and ignores and ignores non-material aspects.
Criticisms on Marshall's Definition of Economics
In 1931, another economist Loinel Robbins wrote a book entitled "Nature and Significant of economics Science". In this book, he criticized Marshall on the following grounds.
1. Narrow Down The Scope Of Economics; According to Prof. Loinel Robbins the use of the word "Material" in Marshall's definition narrows down the scope of economics. Because we need both material and non-material requisites in life i.e goods and services. There are many things in the world which are non-material but still they are very significant for promoting human welfare.
For example the services of doctors, lawyers, teachers, engineers, professors, etc. These things satisfy our wants and are scare in supply. If we exclude these services from the economics then its scope will be very much restricted. Therefore, in the actual study of economics principles, both the material and non-material things are taken into accounts.
2. Relation Between Economics and Welfare; Robbins hardly criticized Marshall's definition due to the reason of the relation between economics and welfare. Robbins said that there are many activities which do not promote human welfare but they can satisfy their wants and regarded economics activities. For examples Alcoholic and smoking goods, drugs, etc.
3. Welfare in a Vague Concept; Professor Robbins raised another objection about "Welfare". In Robbins opinion, welfare is a vague concept. It is purely subjective, it differ from man to man, from place to place and age to age. Robbins says that what is the use of a concept which cannot be quantitatively measured and on which two persons cannot agree as what is conducive to welfare and what is not.
4. Involves Value Judgment; Robbins object that that word "Welfare" involves value judgment. According to Robbins the work of the economists is not promotes or not economists are forbidden to pass any decision.
5. Welfare is Subjective and Difficult to Measure; Robbins also objected to the use of the word welfare because it is a subjective phenomenon which cannot measure objectively. Marshall sought to measure welfare with the help of money. But money is not a satisfactory measuring rod of welfare.
1. Narrow Down The Scope Of Economics; According to Prof. Loinel Robbins the use of the word "Material" in Marshall's definition narrows down the scope of economics. Because we need both material and non-material requisites in life i.e goods and services. There are many things in the world which are non-material but still they are very significant for promoting human welfare.
For example the services of doctors, lawyers, teachers, engineers, professors, etc. These things satisfy our wants and are scare in supply. If we exclude these services from the economics then its scope will be very much restricted. Therefore, in the actual study of economics principles, both the material and non-material things are taken into accounts.
2. Relation Between Economics and Welfare; Robbins hardly criticized Marshall's definition due to the reason of the relation between economics and welfare. Robbins said that there are many activities which do not promote human welfare but they can satisfy their wants and regarded economics activities. For examples Alcoholic and smoking goods, drugs, etc.
3. Welfare in a Vague Concept; Professor Robbins raised another objection about "Welfare". In Robbins opinion, welfare is a vague concept. It is purely subjective, it differ from man to man, from place to place and age to age. Robbins says that what is the use of a concept which cannot be quantitatively measured and on which two persons cannot agree as what is conducive to welfare and what is not.
4. Involves Value Judgment; Robbins object that that word "Welfare" involves value judgment. According to Robbins the work of the economists is not promotes or not economists are forbidden to pass any decision.
5. Welfare is Subjective and Difficult to Measure; Robbins also objected to the use of the word welfare because it is a subjective phenomenon which cannot measure objectively. Marshall sought to measure welfare with the help of money. But money is not a satisfactory measuring rod of welfare.
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