Lionel Robbins criticized Marshal's definition of economics in his book "Nature and Significance of Economic Science". That was written in 1932. He particularly focused the phrase "material requisites of well being". The points of his criticism are as follows:
It limits the scope of economics:
Marshal says that in economics we study production and consumption of material requisites or good only e.g. Radio, TV, furniture, book etc. he therefore excludes non material requisites of well being e.g. services of doctors, teachers and advocates etc. Thus, he has limited the scope of Economics.
Material requisites which don't promote welfare are excluded:
Marshal includes in his definition of economics only those requisites which promote welfare and excluded those which don't promote welfare e.g. drugs, cigarettes, alcoholic drinks etc. therefore, Robbins is trying to say is "just satisfy wants and don't bother whether they are for the better or the worse".
Welfare is not measurable concept:
According to Robbins welfare is not measurable concept whereas in economics we should use measurable concepts. According to him, it can not be calculated that how much welfare a good will give to an individual or a society.
Problems in policy making:
Marshal's definition of economics creates a problem of liking and disliking on the basis of welfare e.g. wine should not be taken and cake can be taken. This retards human freedom for the satisfaction of wants.
It limits the scope of economics:
Marshal says that in economics we study production and consumption of material requisites or good only e.g. Radio, TV, furniture, book etc. he therefore excludes non material requisites of well being e.g. services of doctors, teachers and advocates etc. Thus, he has limited the scope of Economics.
Material requisites which don't promote welfare are excluded:
Marshal includes in his definition of economics only those requisites which promote welfare and excluded those which don't promote welfare e.g. drugs, cigarettes, alcoholic drinks etc. therefore, Robbins is trying to say is "just satisfy wants and don't bother whether they are for the better or the worse".
Welfare is not measurable concept:
According to Robbins welfare is not measurable concept whereas in economics we should use measurable concepts. According to him, it can not be calculated that how much welfare a good will give to an individual or a society.
Problems in policy making:
Marshal's definition of economics creates a problem of liking and disliking on the basis of welfare e.g. wine should not be taken and cake can be taken. This retards human freedom for the satisfaction of wants.
