London School of Economics

On the 4th of August 1894, a breakfast meeting in London changed the trajectory of social science forever. Sidney Webb, Beatrice Webb, Graham Wallas, and George Bernard Shaw gathered to discuss a radical idea: creating a school dedicated to the study of society, economics, and politics, distinct from the traditional classical education offered by Oxford and Cambridge. This meeting birthed the London School of Economics, funded by a bequest of £20,000 from the estate of Henry Hunt Hutchinson, a lawyer and Fabian Society member who left the money to advance the society's objects. The school held its first classes in October 1895 in rooms at 9 John Street, Adelphi, in the City of Westminster. The founders envisioned an institution that would not merely teach economics but understand the causes of things, a motto taken from Virgil's Georgics that still guides the school today. The beaver mascot, chosen for its associations with foresight, constructiveness, and industrious behavior, symbolized the practical yet scholarly approach the founders hoped to instill in their students. The school joined the federal University of London in 1900, and in 1901, it offered its first degree programs under that university's auspices, marking the beginning of a new era in higher education focused on the social sciences.

The Great Debate

The economic landscape of the 1930s was defined by a fierce intellectual battle between the London School of Economics and the University of Cambridge. At the heart of this rivalry were John Maynard Keynes from Cambridge and the LSE's Friedrich Hayek, with Lionel Robbins also heavily involved. The dispute began as a disagreement over whether demand management or deflation was the better solution to the economic problems caused by the Great Depression. Keynes advocated for active state participation and public sector involvement, theories that would later become known as Keynesian economics. In contrast, Hayek and Robbins followed the Austrian School, which emphasized free trade and opposed state involvement. This debate extended beyond mere economic policy to question the role of the economist: should they be detached experts or practical advisers? The LSE's Edwin Cannan and Cambridge's Alfred Marshall had previously argued about whether economics should be considered an organic whole or if pure theory and economic history should be listed separately. Despite the traditional view of fierce rivalry, the two universities worked together in the 1920s on the London and Cambridge Economic Service. During World War II, the school decamped from London to the University of Cambridge, occupying buildings belonging to Peterhouse, further intertwining their histories. The debate between these two institutions shaped the modern understanding of macroeconomics and influenced economic policy for decades to come.

When was the London School of Economics founded?

The London School of Economics was founded on the 4th of August 1894. The institution held its first classes in October 1895 in rooms at 9 John Street, Adelphi, in the City of Westminster.

Who founded the London School of Economics?

Sidney Webb, Beatrice Webb, Graham Wallas, and George Bernard Shaw founded the London School of Economics. The school was funded by a bequest of £20,000 from the estate of Henry Hunt Hutchinson, a lawyer and Fabian Society member.

What is the London School of Economics famous for?

The London School of Economics is famous for educating 24 prime ministers or presidents since 1990 and over 40 world leaders since its establishment in 1895. The school has produced alumni such as B. R. Ambedkar, George Soros, and W. Arthur Lewis, the only black person to have won the Nobel Memorial Prize in Economics.

What controversies has the London School of Economics faced?

The London School of Economics accepted a £1.5 million donation from the family of Saif al-Islam Gaddafi in February 2011. In 2024, emails between LSE senior staff described students wearing keffiyeh as being dressed as terrorists.

How did the London School of Economics relate to the University of Cambridge?

The London School of Economics joined the federal University of London in 1900 and offered its first degree programs under that university's auspices in 1901. During World War II, the school decamped from London to the University of Cambridge, occupying buildings belonging to Peterhouse.

London School of Economics

The Great Debate

Continue Browsing

Common questions