ABSTRACT
The Concept of Demand Wants are to be taken in our analysis as givens or data. However, i t
should be recognized (as in Marshall, Book I I I , Chapter 2) that wants can be both the cause and the result of action. There is the "work-to-live" school, who treat wants as the primary ends, and the "live-to-work" school, who treat activities as the primary ends. I n many ways, this classification is very fundamental and is a key to an economist's position on many issues. For example, one who (implicitly, perhaps) belongs to the "work-to-live" school, like Alv in Hansen, is likely to stress existing wants, take the con sumer as the dominant economic entity, regard the consumption function as stable and as the key to understanding the economy, and can readily adopt the idea of stagnation. On the other hand, one who belongs to the "live-to-work" school, like Schumpeter, w i l l regard the producer-inno vator as the dominant economic entity, stress innovation (even though it may come in waves), and be led to a theory of dynamic economic development.
