“Economics is a study of the common activities of human life. It examines the part of that personal and social work that is best connected to the acquisition and with the physical needs of welfare. Thus, on one side, study of wealth and other important aspects, is a part of human study.”
The key features of the of welfare definition of economics are given below:
(i) Study of Mankind : Marshall laid primary emphasis on the study of mankind. There is no doubt he emphasizes both humankind and wealth in his definition. He has agreed with the classical economists that economics is concerned with money because money is essential for money. Money provides means for survival, comfort and happiness. But he believed that money is not everything, rather it is only a means for human welfare. Thus, it is the study of human being which is central to the study of economics.
(ii) Study of Simple Business of Life : Economics is a study of simple business of life. The general business of life is concerned about income-earning and income- expenditure activities of mankind. Economics studies how people take advantage of their livelihood resources and how they spend them for the satisfaction of their welfare.
(iii) Study of Material Welfare : Marshall emphasized on physical welfare as the primary concern of economics. According to him, economics is not related to total human welfare, but is related to physical welfare, that is, the part of human welfare that is related to money. Economics studies those activities which are closest to the “physical needs of receipt and welfare that they are connected to”.
(iv) Emphasis on the Things Needed for Welfare : Even the need for welfare substances is also emphasized. Obviously, physical things like food, clothing and shelter are very important economic objectives. The material needs are very basic needs that must be fulfilled before thinking about any other needs.
(v) Exclusion of Non-Economic Activities : Marshall has limited the scope of economics to those forces and activities which are eligible for measurement in terms of money. That is why the political, social, cultural and religious activities of humans are excluded from the scope of economics because they are not subject to be measured in terms of money.
The criticism of the definition of welfare is given below:
(i) Economics is Considered to be Just a Social Science : Marshall has been criticized for treating economics as a social science rather than a human science. As a Society member, he studies the work of people living in organized communities, while a human may be living in a community or be a member of an organized community, and he may also be living in isolation.
(ii) Unethical Classification of Activities: The criticism of Robbins is that the difference between economic and non-economic activities is unscientific, rational and misleading because all human activities have an economic aspect.
(iii) Only Materialistic Aspect: Robbins has criticized the definition of welfare saying that it includes only material things in its scope. It does not include non-material things like doctors, lawyers, teachers, etc. in its class. They do not have, any place ^ in services. However, these services meet our urgent needs and thus promote welfare.
(iv) Restricted Area of Economics : Robbins has also criticized the definition of welfare because it restricts the scope of study of economics. Economics studies many activities that minimize financial well-being, many things like alcohol, cigarette and gun do not promote economic welfare.
(v) The Ambiguous Concept of Material Welfare : The definition of welfare is also under criticism on the basis that physical well-being cannot be measured quantitatively. Welfare is a subjective thing. It is mental in nature, it is related to the mental make-up of a person. It varies according to time, place and person. In this way, welfare cannot be measured in objective terms.
