Lionel Robbins on the Definition and Subject-Matter of Economics: Some Critical Observations

Khandakar Elahi

Abstract. In "An Essay on the Nature and Significance of Economic Science," Robbins challenged the classical conception of economics, which he called "materialist." He replaced this classical idea with the "scarcity" concept: "Economics is the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses." The definitions of economics we find in modern textbooks are variants of Robbins' statement, and the catchphrase that has finally emerged from this controversially acclaimed definition is: "Economics is a science of choice." This paper represents a critique that systematically examines Robbins' century-old adage to argue that Robbins' thesis is logically indefensible for many reasons, including the fact that the definition of science cannot be derived from its subject-matter, which expands as time passes; the subject matter of a science is supposed to be implied by the definition. However, the most damaging influence of Robbins' conception on modern economics is his submission that the discipline is free from all moral obligations because it is a science. Following this submission, some prominent economists have devoted their personal and private time and society's resources to research that serves little social welfare. Some of it indeed contradicts society's legal and judicial system.

Keywords: microeconomics, homo economicus, macroeconomics, health economics, health policy, medical care industry