Overview
This lecture covers the life, career, and key economic ideas of William Nassau Senior, a leading 19th-century English economist known for his focus on practical economic solutions and critique of theoretical economics.
Biography and Career
- William Nassau Senior was born on September 26, 1790, in England.
- He studied law at Oxford under Richard Whately and became an academic in 1813.
- Senior was appointed president of the Oxford chair of economics, holding the position from 1830 to 1852.
- He served as a consultant and economist for several British governments.
- Senior contributed to amendments to the poverty law and worked on improving labor conditions.
- He lost his Oxford professorship due to his Irish Catholic Church membership.
- Senior died in London in 1864.
Contributions to Economics
- Senior's approach prioritized factual, real-life economic analysis over hypothetical theories.
- He advised the government on issues such as employment, trade, salaries, working hours, and education.
- He published important works, including "An Outline of the Science of Political Economy."
- Senior contributed articles to various economics and social science journals.
Economic Theories and Critiques
- Senior used an inductive method, focusing on observation and practical evidence.
- He criticized theoretical economists like John Stuart Mill, advocating for economics based on actual events.
- Senior was among the first to use "deprivation" (abstinence) as an economic term.
- His "abstinence theory of profit" argues profit is the reward for not spending accumulated capital.
- He opposed Malthus' population theory, believing population growth supports economic welfare and growth.
- Senior was the first professor of political economy at Oxford and in England.
Key Terms & Definitions
- Inductive Approach — Economic analysis based on observation and real-life cases, rather than pure theory.
- Abstinence Theory of Profit — The idea that profit compensates owners for abstaining from spending their capital.
- Political Economy — The study of production, trade, and their relationship with law and government.
Action Items / Next Steps
- Review "An Outline of the Science of Political Economy" for a deeper understanding of Senior’s theories.
- Prepare notes on the differences between inductive and theoretical approaches in economics.