Welfare definition of economics

The welfare definition of economics is an attempt by Alfred Marshall , a pioneer of neoclassical economics, to redefine his field of study. This definition expands the field of economic science to a larger study of humanity. Specifically, Marshall's view is that economics studies all the actions that people take in order to achieve economic welfare. In the words of Marshall, "man earns money to get material welfare." Others since Marshall have described his remark as the "welfare definition" of economics. This definition enlarged the scope of economic science by emphasizing the study of wealth and humanity together, rather than wealth alone. In his widely read textbook, Principles of Economics, published in 1890, Marshall defines economics as follows: Political Economy or Economics is a 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 requisites of well-being. The following are the implications of this definition: Economics is a study of humankind. Human life has several aspects: social, religious, economic and political—but economics is concerned only with the economic aspect of life. Promotion of welfare is the ultimate goal, but the term welfare is used in a narrow sense to meet material welfare only. According to Edwin Cannan, "the aim of political economy or Economics is the explanation of the general causes on which the material welfare of human beings depend". Marshall clearly explains that economic activity is different from other activity. For example, If a student visits a friend who is ill, it is a social activity, If a person give his vote in an election, it is a political activity. If a person goes to church/temple it is a religious activity. Marshall defines economic activity as separate from the above activities. A farmer who toils in the field, or a worker on an assembly, are performing an economic activity: they work to increase their material welfare (primarily by earning money).