Marshall is one of the economists who contributed a good deal to economic theory. Even his definition of economics occupies an important place in the literature of economics.
He was the first economist who lifted the science of economics from the morass into which it had fallen towards the close of 19th century. He shifted his emphasis from ‘wealth’ to ‘welfare’.
He was inspired by the criticism of social thinkers and made a thorough study of original writings of Adam Smith and then came to a conclusion that “Wealth for its own sake is of 110 use, but when placed in the hands of man, it gains the importance.” The concept of ‘welfare’ was included in the definition of Economics in his famous book, “Principles of Economics” published in the year 1890.
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Marshall pointed out that for economics, wealth is not an end in itself but it is only a means to an end; the end being the promotion of human welfare. Thus, according to Marshall, wealth is only a secondary thing; it is man and his ordinary business of life which is the primary object of economic study. In fact, Marshall tried to make the study of economics an engine of social betterment.
With this end in view Marshall gave the following definition of economics “Political Economy or economics is the study of mankind in the ordinary business of life; if examines that part of individual and social action which is most closely connected with the attainment and with the use of the material requisites of well-being.”
Marshall, at another place writes “Economics is a study of man’s action in the ordinary business of life; it enquires how lie gets his income and how he uses it.”
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Thus, we see that through his definition of Economics, Marshall has given preference to man over wealth. According to him, the main and fundamental aim of Economics is to promote human welfare. As such Economics acquired a great social importance and it no more remained as a “Dismal Science’ or the “Science of Selfishness’.