Alfred Marshall (1842–1924)

This chapter discusses Alfred Marshall’s views on economic method, his demand–supply apparatus, his evolutionary theory, the idea of organic growth, his views on competition and monopoly, and socialism, welfarism and human development. Although influenced by socialist ideas, he thought that socialism was better as an ideal rather than as a rigid economic organisation. He also disliked corruption and violence associated with bureaucratic socialist structures. He viewed economics through the prism of ethics and regarded economics as useful in solving practical concerns like poverty, unemployment and inequality. The division of labour by increasing productivity could help solve the problem of poverty, but that by itself was not enough. He wanted the poor working classes to enjoy good health, education, open and green spaces, and good recreational facilities. He wanted to alleviate man in terms of his physical, mental and moral dimensions. The ultimate aim was to make every worker a gentleman with good moral character who can live his life as a responsible citizen of society. For him, economic evolution was a combination of routine and innovation. While all repetitive and degrading tasks requiring the division of labour could be taken over by machinery, the government, through its conscious efforts, could concentrate on human development and character building.