Discuss Prof. Robbins' definition of Economics and what are its drawbacks?
OR
Discuss scarcity definition of Economics given by Prof. Robbins and its comments.
OR
Discuss scarcity definition of Economics given by Prof. Robbins and its comments.
“Economics is a science which studies human behaviour as a
relationship between ends and scarce means which have alternative uses.” –
Prof. Lionel Robbins.
It has following drawbacks:
(i) Static: Prof Samuelson pointed correctly that Robbins’ definition is not dynamic
in nature, because it has only discussed about the problems of present
generation, not anything about future generation. Hence the definition suffers
with the problem of economic growth.
(ii) Too vast: It discussed the scope of economics to all the activities of
mankind that are related to the problem of choice. The problem of choice is
found in both social and unsocial beings. Thus, it has no social significance in
real world.
(iii) Economic problems also arise from more supply: Some economists claim that economic problem also arises from the
plenty of goods as well. The Great Depression of 1930s in USA was due to
abundance of goods, but not due to scarcity of resources.
(iv) Not fit for socialistic economy: Prof. Maurice has criticized Robbins’ definition that his definition is
not applicable for a socialistic economy, because in this type of economy, the
Government takes all the initiatives for supplying all the basic necessities of
life among the citizens. For the betterment of whole society the Government
usually launches several beneficiary activities.
(v) Not fit for rich country: The economic problem for a rich and sound economy is different from the
underdeveloped or poor economy. Here the resources are not limited. In fact,
resources are plenty in this type of economy.
(vi) Relation with welfare: Robbins criticised Marshall’s definition on the ground of welfare.
However, limited means are used to fulfill unlimited wants. Thus, it means that
maximising satisfaction will lead to more welfare. Hence, Robbins’ definition
is related with welfare also.
“Economics is a science which studies human behaviour as a relationship between ends and scarce means which have alternative uses.” – Prof. Lionel Robbins.
It has following drawbacks:
(i) Static: Prof Samuelson pointed correctly that Robbins’ definition is not dynamic in nature, because it has only discussed about the problems of present generation, not anything about future generation. Hence the definition suffers with the problem of economic growth.
(ii) Too vast: It discussed the scope of economics to all the activities of mankind that are related to the problem of choice. The problem of choice is found in both social and unsocial beings. Thus, it has no social significance in real world.
(iii) Economic problems also arise from more supply: Some economists claim that economic problem also arises from the plenty of goods as well. The Great Depression of 1930s in USA was due to abundance of goods, but not due to scarcity of resources.
(iv) Not fit for socialistic economy: Prof. Maurice has criticized Robbins’ definition that his definition is not applicable for a socialistic economy, because in this type of economy, the Government takes all the initiatives for supplying all the basic necessities of life among the citizens. For the betterment of whole society the Government usually launches several beneficiary activities.
(v) Not fit for rich country: The economic problem for a rich and sound economy is different from the underdeveloped or poor economy. Here the resources are not limited. In fact, resources are plenty in this type of economy.
(vi) Relation with welfare: Robbins criticised Marshall’s definition on the ground of welfare. However, limited means are used to fulfill unlimited wants. Thus, it means that maximising satisfaction will lead to more welfare. Hence, Robbins’ definition is related with welfare also.
