What Is Welfare Economics?

Welfare economics is a system of economic theories established by British economists Hobbs and Pigou in the 1920s to study social and economic welfare. Welfare economics was formed in the UK in the early 20th century. It has gone through two development stages, old welfare economics and new welfare economics. The former is based on cardinal utility theory, and the representative is Pigou of the United Kingdom. In the "Welfare Economics" published in 1920, he systematically demonstrated the possibility of achieving the maximum economic welfare in the entire economic system for the first time; The author is based on the ordinal utility theory, and the representative is Pareto in Italy. He first examined the issue of "maximization of the utility of aggregates" and proposed "the most appropriate conditions for Pareto." At present, the research on welfare economics is more and more focused on practical applications, and major western economists are involved in this field. ^[1]

Welfare economics

(Branch of Economics)

2. welfare economics

Welfare economics, as a branch system of economics, first appeared in Britain in the early 20th century. The publication of AC Pigou's "Welfare Economics" in 1920 was a sign of the emergence of welfare economics. The outbreak of World War I and

Basic Law 1: Regardless of initial resource allocation, a decentralized competitive market can be achieved through personal self-interest trading behavior

The main characteristics of welfare economics are: starting from a certain value judgment, that is, establishing a theoretical system based on established social goals; establishing the concept of welfare based on marginal utility cardinal theory or marginal utility ordinal theory; taking social goals and Based on the welfare theory, formulate economic policy plans.

Pigou was the founder of the welfare economics system. He defined the object of welfare economics as the study of improving the economic welfare of the world or a country. Pigou believes that welfare is a psychological response to enjoyment or satisfaction. Welfare is divided into social welfare and economic welfare. Only the part that can be measured in money is social welfare.

Pigou put forward two basic welfare propositions based on the marginal utility cardinal theory: the larger the total national income, the greater the socio-economic welfare;

Economists in Pigou

In the 1930s, Pigou's welfare economics

Welfare economics is an economic theory that justifies the study of welfare or maximization in the form of "perfect competition" in defense of monopoly capital to obtain maximum profits. Whether it is a welfare economist who advocates both economic efficiency and fair distribution, and whether it is a welfare economist who emphasizes economic efficiency without discussing fair distribution, they use only purely formalistic analysis to carry out economic status quo in western countries Justify and try to make suggestions for monopoly organizations to use the state to formulate "welfare state" policies, price and output policies, and foreign trade policies that are beneficial to themselves. (The above is what the Marx School of Economics said)