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THE PSYCHOLOGICAL BASIS OF ECONOMIC THEORY.
- Source :
- Sociological Review (1908-1952); Oct1923, Vol. a15 Issue 4, p278-285, 8p
- Publication Year :
- 1923
-
Abstract
- The article focuses on psychological basis of economic theory. In so far as economists do find some psychological theory indispensable, they aim at a quantitative measurement rather than a qualitative analysis of human motives. Thus behind the economic theory of value there lies the assumption of the psychological theory of the satiability of human desires. While economic theory lays so much stress on the supposed satiability of all human desires, the administrators responsible for the conduct of the business side of the war proceeded on the opposite assumption, on the assumption that each increase of wages would elicit a fresh increase of effort from workers. The author in this article suggests the following hypothesis: (1) that the economic relation is seldom, if ever, purely economic. (2) That all economic contacts, like other social contacts, between individuals stir in those individuals in greater or less degree some of the primary instinctive emotions, and that the economic relations established are colored accordingly. (3) That the economic relation may in consequence be poisoned, by the excitation of anger, disgust, the mortification of self-esteem; or, it may be sweetened and consolidated by the excitation of the generalized parental instinct.
Details
- Language :
- English
- ISSN :
- 00380261
- Volume :
- a15
- Issue :
- 4
- Database :
- Complementary Index
- Journal :
- Sociological Review (1908-1952)
- Publication Type :
- Academic Journal
- Accession number :
- 12700293
- Full Text :
- https://doi.org/10.1111/j.1467-954x.1923.tb01466.x