Welfare definition is also called as Neo-Classical definition of economics. Alfred Marshall gave this definition in his book called Principles of Economics which was published in 1890.

Alfred Marshall defined Economics as the study of mankind in the ordinary business of life. The definition is not concerned with wealth but with the acquisition of wealth and usage of wealth by man. Marshall gave primary importance to man and his welfare and secondary importance to wealth. Hence Economics according to Alfred Marshall is study of man one side and study of wealth on the other side.

The other economists who supported the welfare definition were Prof. Edwin Cannon, Prof. Pigou, Prof Ely, Penso etc.

FEATURES OF WELFARE DEFINITION

1. Study of Mankind: Welfare Definition believes Economics as a social science, a science which considers man not in isolation but as a member of the society, engage in different economic activities. Hence Economics is the study of economic activities of man which are concerned with the material welfare of man.

2. Ordinary business of life: According to welfare definition economics studies economic activities of an ordinary man. An ordinary man works to earn and to spend his earnings to get the satisfaction from his earnings.

3. Study of individual and social actions: Economics studies man as a member of a social group and social activities of man which are concerned with material welfare.

4. Material welfare: Welfare definition treats economics as a subject which studies the welfare of man on the ground of material type. It excludes non material activities such as political, social, and religious, the other services like the services of doctors, lawyers, teachers, actors, singers, etc.

CRITICISM OF WELFARE DEFINITION

1.Limited Scope for Economics: Marshall’s definition has limited the scope of economics by including only materialistic things. It does not include non-material things like the services of doctors, teachers etc.  Which are also provide welfare to man. According to Robbins ends refers to wants which is unlimited in nature. Wants are endless and monotonous [Repetitive] in nature. Satisfactions of all wants are not possible, but they have priority in satisfying them.

2. Absence of clear concept of welfare: Marshall’s definition has too much concentrated on the goal of welfare. The concept is subjective and uncertain because welfare differs from man to man, from time to time and place to place.

3. Lacks Universal Application: Welfare definition covers the activities of those who live in society but what about those who lives outside the society. Economic problem arise even for the people who lives outside of society. So this definition lacks universal application.

4.Quantitative measurement of welfare is not possible: Welfare cannot be measured as it depends on the feeling of persons. For E.g. No two people get the same satisfaction with the quantity purchased by spending equal amount of money. A poor man can get more satisfaction than a rich man.

Conclusion.

It is true that the welfare definition of Marshall lost much of its importance after Scarcity definition of Robbins, but it thrown light on several important aspects like Economics as a social science, as a study of man in relation to wealth and Economics is considered as a science as well as an art. The welfare definition has clearly brought out these points.

also read: explain the Growth definition of economics.