Robbins' definition, it's features, superiority and criticism

 

Robbins' definition, it's features, superiority and criticism

Lionel Robbins provided a new definition of economics in his book, “Nature and Significance of Economic Science”, published in 1932.

According to him, “Economics is the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses.”

Robbin's definition is based on the following aspects:

• Ends or wants are unlimited and as one wants gets satisfied another arises that’s why we have to make a choice between the most urgent want and less urgent wants. Thus, the problem of choice arises. That is why economics is also called a science of choice.

• ‘Means ’or resources to satisfy human wants are limited. The means refer to goods and services which are used to satisfy human wants. These resources are scarce and to be used optimally to get maximum satisfaction. For example, money is an important means to satisfy many of our wants. We use it optimally and make choice among the vast array of wants that are to be satisfied.

• Robbins also said that the scarce means have alternative uses. All the scarce means can be used for more than one purpose. For example, land is scarce in nature but it can be used for construction of buildings, cultivation, parks etc. The use and allocation of scarce resources to produce goods and services have to be such as would maximise satisfaction. This applies both to the behaviour of the individual and of the society as a whole.

• Economics is related to all kinds of behaviour that involves the problem of choice. For example, if I have a land then I have to choose the best option to utilize the land so that it gives maximum benefits. Thus, according to Robbins, economics is the valuation process which is concerned with unlimited wants and scarce means being put to alternative uses in order of their importance.

Why Robbins’ definition is superior to the earlier definitions

 It is more scientific since it is not based on the artificial classification of wants. Adam Smith divided man into economic and non-economic and Marshall classified human activities into two parts; material and non-material. Thus, Robbin's definition is more scientific and analytical.

There is universality in Robbin's definition. It is applicable to small and large societies and also applicable to both planned and unplanned economies. 

Robbins’ definition has widened the scope of Economics. Marshall had restricted it to wealth and activities which related to the material welfare of man only while according to Robbins, all types of human wants, material or non-material as well as of all types of persons whether living in society or outside the society, come under the scope of Economics.

According to Robbins, economics is the science of choice. The choice of resources among the unlimited wants of society as well as government is the basis of Robbins’ definition. An individual has to make a choice between unlimited wants to get the maximum satisfaction from a limited income. The government has to utilize limited resources intellectually to achieve a high rate of economic growth.

Criticism Of Robbins Definition

Robbins’ definition of economics is not free from criticism. The main points of criticism are given below-

• Robbin criticized Marshall’s definition on the grounds of welfare but his definition is also related to welfare. As limited means are used to fulfil unlimited wants for maximizing satisfaction and it will lead to more welfare.

• Robbins’s definition has unnecessarily widened the scope of economics by including all the activities of mankind that are related to the problem of choice. Example – If a student has to choose between studies or watching a movie, this activity of decision-making will also come under the scope of economics. However, critics said that uneconomic activities should not be included in economics.

• According to Robbins’ definition scarcity is the cause of economic problems. But the fact is that even the abundance may cause an economic problem. The Great Depression of the 1930s in the USA was due to an abundance of goods, but not because of the scarcity of resources.

• Robbins’ definition is based on this unrealistic assumption that each individual does only those activities from which he gets maximum satisfaction. But practically, an individual does not always compare the satisfaction he gains from different activities. Usually, he acts without thinking so rationally.

• Robbin’s definition of economics does not have any solution to the problem of underdeveloped countries as it is concerned with the development of unused resources.

• Prof Samuelson pointed out that Robbins’ definition is static in nature because it is only related to the problems of the present and is not concerned with anything about the future. Hence, this definition emphasizes scarcity and neglects economic growth and development.

Dr. Swati Gupta

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