Economic: New Welfare Economics and Socialism http://www.economictheories.org/2008/11/new-welfare-economics-an...

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Adam Smith Classical Economics (1)
The New Welfare Economics and Socialism
Alfred Marshall Biography - Theory (1)

Antoine Augustin Cournot (1)

As the turn of the century drew near, the tendency to criticize and abandon
marginal utility and a competitive solution as the basis for organizing economic Aristotle and Plato Economic Thought (1)
life brought together three different thought tendencies and focused them on Austrian Economic Thought (1)
the problem of "social welfare." These three tendencies were the general-
Business Cycles History (1)
equilibrium theory of Barone and Hicks, the full-employment theory of Keynes,
Capitalism and Socialism (1)
and the Marxian theories of central control. The new movement was led by
certain Socialistic thinkers such as Lerner and Lange in America and Dickinson Carl Menger Biography - Theory (1)
in England. Their thought was essentially subjective in that they ignored certain Competition - Supply and Demand - Price (1)
essentials in the problems of producing goods. They assumed that utility as David Hume Biography - Theory (1)
"wants" is important, but only under conditions of equal income. This enables
David Ricardo Contributions (1)
them to substitute for the idea of individual marginal utility operating
competitively in a free economy the idea of an aggregate optimum in a Distribution Of Wealth and Income (1)

controlled economy. Econometrics Models in Economic (1)

Economic Thought in England (1)

The new welfare idea is based on the assumption that individual marginal
Economic Thought in France (1)
utilities are not measurable. This assumption appears in the general-
Economic Thought in Germany (1)
equilibrium analysis, where the indifference curve replaces it. An indifference
map on which there may be many indifference curves is the result. But this Economic Thought in Italy (1)
leads to the concept of some total well-being upon which the "optimum" Economic Thought in United States (1)
condition must depend. At this point the general-equilibrium approach appears
Economic Thought Of The Romans (1)
to break down as a scientific procedure. The dictator is called in — the central
Edward Chamberlin (1)
planning board.
Edwin Chadwick Biography Theory (1)

The Keynesian and Marxian approaches are more simple in a way and certainly Foreign and Domestic Trade (1)
more objective. The Keynesian thinker sees welfare as synonymous with full Frederic Bastiat Biography - Theory (1)
employment and employment in terms of the "wage unit" which is essentially
French Mercantilist Thought (1)
labor-time. Similarly, Marxian thinkers, while revising the labor cost theory of
Friedrich August Von Hayek (1)
value, are forced to accept some non-economic standard of performance per
man-hour. The idea seems to be to assume (1) "comparability of utilities" as a Gary Stanley Becker (1)
basis for normative control over production and use, and (2) to set up a central Henry Charles Carey (1)
board to allocate resources without regard to actual differences in ability or
Heterodox Economic Thought (1)
disutility as they exist among different individuals. The general criterion of
History Of Economic Idea (1)
optimum conditions appears to be the requirement that price shall equal
marginal cost without any allowances for profits. The question as to what is to Influential Precursors (1)

be included in cost, however, remains vague and is the source of much J. C. Leonard Simonde de Sismondi (1)
discussion and disagreement. The centralist group which stems from Marxian James McGill Buchanan (1)
thought appears to favor the use of "fixed coefficients," which is just another
Jean Baptiste Say's Law (1)
way of saying that technical problems only would be considered — no values —
for the short run at least! The "competitive" solution group which stems from Jeremy Bentham (1748-1832) (1)

the general-equilibrium or Keynesian approach breaks down into two groups. Joan Violent Robinson (1)
One sub-group would endeavor to make some use of the idea of consumer Johann Heinrich Von Thünen (1)
sovereignty and presumably allow firms to make a profit. This, however,
John A. Hobson - Imperialism (1)
appears to suit no one. The other sub-group would have firms run by a salaried
John Kenneth Galbraith (1)
manager. After all, while there may be some difference in spirit or attitude,
this idea seems to come close to the centralist approach. The whole tendency is John Maynard Keynes (1)
to set up a concept of "social value," assuming a "scale of social values" which John Richard Hicks (1)
in the last resort requires an authoritarian origin. John Rogers Commons (1)

John Stuart Mill Theory (1)

Those who are thinking along these lines in America appear to be such men as

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Economic: New Welfare Economics and Socialism http://www.economictheories.org/2008/11/new-welfare-economics-an...

Lerner, Lange, Bergson, and Sweezy. Their ideas have been criticized by F. M. Joseph Alois Schumpeter (1)
Taylor, Mises, Hayek (England), Schumpeter, Wright, Graham, and Knight. Jules Dupuit (1804-1866) (1)

Karl Marx Theories (1)

Kenneth Ewart Boulding (1)

Knut Wicksell Biography and Theory (1)

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Land - Private Property and Rent (1)

Leon Walras Biography - Theory (1)

Lionel Charles Robbins (1)

Medieval Economic Thought (1)

Mercantilism and Physiocracy (1)

Michal Kalecki Biography - Theory (1)

Microeconomics in Germany - Austria (1)

Milton Friedman History - Theory (1)

Modern Economic Planning (1)

Modern Macroeconomic Theory (1)

Modern Microeconomic Theory (1)

Money - Credit and Banking (1)

Monopolistic and Imperfect Competition (1)

Nassau Senior - The Poor Laws (1)

Neo-Classical Economic Model (1)

Paul Anthony Samuelson (1)

Piero Sraffa Theory - Biography (1)

Political Economy Definition (1)

Post - Keynesian Economics (1)

Post-Ricardian Developments (1)

Preclassical Economic Thought (1)

Productivity of Labor and Theory of Wages (1)

Richard Cantillon Biography Theory (1)

Rise Of Capitalism and Religion (1)

Rise Of Mercantilism (1)

Robert Malthus Theories (1)

Robert Owen Social Communes (1)

Rosa Luxemburg - Theories (1)

Social Reformers - Physiocrats (1)

Spanish Economic Thought (1)

The Anarchists (1)

The End Of Classical Economics (1)

The Historical School (1)

The Nature of Wealth and Value (1)

The Place of Capital in Economic Process (1)

The Post-Keynesian Era (1)

The Scottish Enlightenment (1)

The Solidarists (1)

Theories of Taxation (1)

Thomas Hodgskin - Social Price (1)

Thorstein Veblen Theories (1)

Vladimir I. Lenin Theories (1)

W. Arthur Lewis Model (1)

Wassily Wassilyovitch Leontief (1)

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