chapter  2
Scitovsky’s research programme on human welfare
Pages 27

This chapter discusses economic growth in which 0has priority over economic welfare. Scitovsky's approach extends beyond economic welfare towards human welfare because he included in the individuals pursuit of creative activity extra- economic goods like companionship, interesting work, skilled leisure, and enjoyable learning. The concept of consumer sovereignty is rather standard in economics, but Scitovsky was dissatisfied with it. His analysis extended the concept to the lives of individuals in order to study human welfare, rather than only economic welfare. Consumer sovereignty consists of two necessary components: preference satisfaction and freedom to choose. Preference satisfaction means that the goodness or success of productive effort can be judged only in the light of consumer's preferences. In conventional economic analysis, room for policy arises when, in an economic system, someone can be made better off without making anyone else worse off, as the Pareto criterion prescribes.