Welfare Definition of Economics

Welfare Definition of Economics
In 1890 A.D., Alfred Marshall punlished his book entitled,"Principles of Economics". It protected the existance of economics with the help of this book. Marshall showed that human welfare is more important than wealth. According to him, wealth is for man but man is not for wealth. By the definition of Marshall,"Economics is the study of mankind in the ordinary business of life. It inquires how a man earns income and how he uses it. Thus, it is on the one side the study of wealth and on the other, the most important part is the study of mankind."

It is a quite clear that, although economics still studies wealth. Wealth is not considered of primary importance. In other words it has been secondary place, the first place being given to man. Thus, economics could no longer to be considered to a science of selfishness of a 'dismal science'. Rather, it required a great social important because the promotion of human welfare become its chief aim.

Main Ideas:
  • Economics doesnot regard wealth as the be-all and end-all of economic activities. Wealth is sought only for promotion of human welfare.
  • Economics is a social science as it deals with the behaviour of ordinary people in the society.
  • Economics deals with human activities related to material welfare. In this way, Marshall laid the foundation of welfare economics.
Logical Explaination

Marshall shifted the focus of economics from wealth to welfare at the end of the 19th century. No doubt, he considered wealth as an important aspect of economic studies. But, he assigned secondary importance to wealth the primary importance to individual and social welfare. His definition of economics as a science of material welfare are explained below:


Wealth Definition:

According to J.B.Say," Economics is the study of science of wealth."

According to Adam Smith," Economics is the science which deals with the wealth."


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