Master of Business Administration (MBA) (Business Psychology)

We usually think of an individual doing administrative work not as an administrator, but as a businessman, an Army officer, or a civil servant. More specifically, we think of him, if he is a businessman, as a merchant, a production man, a sales manager, or a financial expert; while the Army officer may be a company commander, a staff officer, or a tactician; and the civil servant, a diplomat, a postmaster, or a revenue collector. It is true that all of these jobs involve administration: yet each of them is intimately bound up with a more or less specialized subject matter and it does not follow that a good production man win make a good diplomat or company commander.

[Modern psychology] appears as the sickly offspring of average common sense when it is taken as what it professes to be—a science of the inner life. The entire achievements of the so-called science in this respect is outweighed by a single page of Goethe’s or of Jean Paul’s psychology; and it is impossible to evade the bitter truth which Novalis already has summed up, when he says that so-called psychology is one of those idols which have usurped the place in the sanctuary where true images of the gods should stand.

To those who run businesses, profits are obviously desirable and losses deplorable. But economics is not business administration. From the standpoint of the economy as a whole, and from the standpoint of the central concern of economics — the allocation of scarce resources which have alternative uses — profits and losses play equally important roles in maintaining and advancing the standards of living of the population as a whole.