Material Welfare Definition of Economics

 Marshall's Definition of economics

The wealth definition given by Adam Smith and his followers have been too much criticized by various economists in several grounds. In this regard, Alfred Marshall, a British economist and the leader of neoclassical economists tried to enlarge the scope of economics by shifting the emphasis from wealth to mankind. He wrote a book on the subject named "Principles of Economics" published in 1890 AD. According to him, '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 the attainment and with the use of material requisition of well being. It's on the one side a study of wealth and on the other and most important side a part to a study of man'. This definition was supported by various neo-classical economists like A. C Pigou, Irving Fisher, Edwin Canon etc. 

Features and characteristics of material welfare definition.... 

The material welfare definition given by Marshall and his followers has the following main features or characteristics:

1. Primary concern: The main concern of this definition is the study of mankind in relation to wealth. It means primary importance has been given to man and secondary importance to wealth in the study of economics i. e the subject matter of economics is material welfare. 

2. Ordinary business of life: Economics is concerned with the study of mankind in the ordinary business of life. It means the function of men and women in social life. It doesn't study the activities of non-social person like beggar, thief, monks etc. 

3. A social science: Economics is a social science science and therefore it studies human behavior as a member of society. Isolated individuals who were Sepereted from the main stream of the society don't get place in the study of economics. 

4. Study of economic activities: According to Marshall, economics is concerned with the economic aspect of social human beings. It means the aspect of income earning and income spending. It doesn't study the other aspects of life. 

5. Study of material welfare: The main emphasis of this definition is on material welfare. It studies only material requisites of well being i.e causes of material welfare. 

Criticisms of material welfare definition....... 

Marshall's definition of economics remain quite popular for a long time. However, in 1932 AD, Professor Lionel Robbins of London School of Economics pointed out the defects of this definition. They are as follows:

1. Classifictory definition: According to Robbins, Marshall's definition classified human activities into different parts i.e ordinary- non ordinary, economic- non economic, material- non material etc. But in real life such division of human activities is unscientific and illogical. 

2. Non- material goods also satisfy human wants: According to Marshall only material things can promote human welfare. But according to Robbins, the non material activities of teachers, lawyers, doctors etc can also be useful to promote human welfare. Because material things can be exchanged with non material things. 

3. Economics is a human science: According to Marshall, economics is a social science and therefore it studies activities of only social human beings. But according to Robbins economics is a human science and studies the activities of all human beings whether live in the society and out of the society. Because all people faced the same fundamental economic problem i.e scarcity of resources and unlimited wants. 

4. Scarcity, not welfare is the subject matter of economics: According to Robbins, the subject matter of economics is scarcity, not welfare because the concept of welfare changes according to time , place and circumstances. For example:- a nonsmoker thinks about smoking is dangerous to health, so he takes it as a source of negative welfare whereas a smoker considers it as a need which promotes his welfare. 

5. Economics is a positive science: According to Marshall, economics is a normative science but according to Robbins economics is a positive science because it's entirely neutral between wants as every positive science is.