History of the London School of Economics
The history of the London School of Economics dates from 1895, when the School was founded by Fabian Society members Sidney and Beatrice Webb, Graham Wallas, and George Bernard Shaw, with funding provided by private philanthropy, including a bequest of £20,000 from Henry Hunt Hutchinson to the Fabian Society.
History of the London School of Economics
During these years and under the directorship of William Beveridge, future father of the welfare state and the National Health Service, LSE redefined the study of economics and the new conception of the study of economics as "a science which studies human behaviour as a relationship between ends and scarce means which have alternative uses" is looked to as the norm. LSE in this sense must be looked at as the father of modern economics studies. Under Beveridge, Friedrich Hayek was appointed as a professor and he brought about the ascendancy of the LSE through his famous debates with John Maynard Keynes.