Common people have become more engrossed in the role economics plays in our daily life. Economics deals from the property market to the macroeconomics of the household budget. Everything is connected to economics and therefore its interpretation is enthralling. For the upgrading of employability in banking, government sector, NGOs and businesses, attaining a comprehensive understanding of the diverse ways that people scrutinise economics phenomena allows for more compliant and ingenious practice. Development economics can expose exhilarating ideas and elucidations regarding the big concerns of the 21st century such as poverty, inequality, unemployment and globalization. A need is to cultivate international acquaintances to reveal economic propensities. There is a need to introduce a deep understanding of specific countries and issues established on tangible analysis of antiquity, establishments and political economy. It is an opportunity that will undoubtedly instigate economists to rethink their approach to economics. Economics can be used to fight poverty by implementing the right economic policies. The politicians have to translate the research into action from instigating appropriate plug-ins. There is a need to ascertain explicit programmes that can assuage poverty, ranging from low cost medical treatments to innovative education programmes. We need to examine the causes of unemployment, absenteeism in education, social programmes and other issues.
Economic output (GDP) and inflation are two significant features that need to be studied meticulously. The relationship between GDP and inflation, how they interact, how much inflation is good annually, are the factors of interest to any investor. There is supposed to be no profit if the GDP is constant or declining. On the other hand, if the GDP is increasing it may intensify inflation. A minor escalation in percentage of GDP growth per year is rewarding for the economy without any side-effects. This annual GDP may drop the unemployment rate. In order to maximize profits, wages are to be raised, which will in turn result in higher prices. Some economists argue that 0% inflation is ideal for stable prices. On the other hand some argue that a little inflation is a good thing. Global integration and technological progress offer substantial benefits. But these may lead to intensifying inequality and political turmoil. Tightening monetary and fiscal policy may lead to recession. High tariffs on imports increases demand for domestically produced goods and of course domestic workers. In the coming years, economy will provoke serious challenges. The markets are nervy because of the impending of debts. This increases the system vulnerability. It is unlikely that economic performance will be insusceptible to centrifugal and social forces. Operational management of imbalances and more consumption and innovation-driven growth can be expected.
In India 20% of the educated youth are unemployed. The priority should be to create jobs. The economists and the engineers need to brainstorm together to make a proper economic policy. The government need to target the job growth and we should emphasize on the high economic expansion for job-creation. In order to boon the economy we need to be clear about health and education, agriculture and rural development, urban and infrastructure connectivity, manufacturing and exports, and employment. We need an intuitive outlook on several facets of economy and policy-making. Economic growth can be sponsored through innovation, start-up, job-creation, risk taking and ingenious ideas. We should always reassure innovation and entrepreneurship. Those national policies should be tailed that promote innovation to certify that there will be adequate prosperity. We need not to reward unemployed because it only leads to more redundancy. It will only lead to pandemonium if the jobless stay unemployed for longer time. If the jobless contribute to the benefits of the society, they can gain skills, contacts and references which will in turn make them successful in the next job they attain.
Paul: I think it helps if young people understand how the economy functions and how it affects their daily life. I actually think economics should be taught in grade school and high school to all students.
I also think it helps if the government officials understand some basic economic concepts and how government policy affects the economy. Maybe government officials should have to take an economics seminar to become more educated about the economy.
The study of economics helps the development of abstract reasoning.
It is important because it contains all the other social disciplines. If you really understand the idea of economy, you also have a good knowledge of sociology, politics, philosophy, psychology, and mathematics/statistic. The question is simple but the description is not that easy.
In simple language, the principles of economics can help in the design of programs for the allocation of scarce resources in society.
I agree with @Paul Stock and @Roberto - Minadeo. I think everyone should at least understand the basic principles of economic. It help us to function properly everyday. It assists us to comprehend social phenomena and behavior of economic actors. It supports us to make important decisions. And, it guide us to foresee and anticipate risks and opportunities in the future.
Economic is very useful indeed as it simplify matters by quantifying variables. Thus, it is easier for us to assess things, formulate decisions, and make plans since economic arrange our mind in a neatly structured logic.
Surely, as we process more variables, matters becomes more complicated. Basic economic principles might not help. In addition, economic might not be appropriate for analyzing qualitative matters. Nonetheless, it is very practical if we understand basic economic principles.
Joseph Tham
i agree with Yudhi Dharma Nauly
everybody should knows about issue of economics. actually, i think our destination depends on today's economical decisions.
economics is about the production of goods and provision of services. Economics is rather complex from its coverage (agriculture, mining, industry, etc, etc etc) as well as from its paradigms, approaches, etc. Economics is a central aspect of any society.
I am not really an economist, but a geographer, but economy, meaning the production of goods and provision of services have always made great impact on spatial aspects. I am e.g. also teach environmental management and principles such as demand and supply have great impacts on scarcity and with it on resource use and environmental impacts. One issue I notice at times is that there are economists who think that economy is the driving force of how societies do and how they function. I feel that many other considerations are important and that economy is embedded into societies,..... .
The modern subject of economics has strayed far from its roots in moral philosophy, and it has made economics very theoretical and irrelevant for solving many of the social problems of today.
Naushad Khan
Modern economics has ZERO ethics, and this is the problem with economics. It is a mistake to think that economics is only about efficiency. We must include morality and ethics in to economics, Khan sahib, sir ji.
If you expect a government to establish useful, helpful, economic policy, then the first thing the politicians have to understand is how the economy works. Countries go hopelessly bankrupt, when politicians establish policy based on what make them sound good and virtuous, instead of understanding the forces at work. Like anything else in life. It's very risky to approach difficult problems from a point of complete ignorance.
And Joseph, even "ethics" do not contradict economics. They are merely someone's value judgment. So for example, is it "ethical" to hand out free housing to the population? It might sound ethical to some people, but to me, it sounds like a reckless path to destruction. And then you will be wondering whether it's ethical to have created a chronic housing shortage, and a collapsing economy.
(Of course, there are also various points of view, with respect to how the economy works. That's why, like any other science, the more education in the subject matter, the better the results will be.)
Ethics without economics is inefficient
Economics without ethics is immoral and dangerous
Be careful, my friends and colleagues.
Naushad Khan
Khan Sahib, kindly explain, how you integrate the principles of ethics with economics. It would be most kind of you if you do the needful
Ethics is part of everything that is done. Ethics about the reflection of good and bad action, of right and wrong. Of course I can understand that in the field of economics there is much discourse about what is right and what is wrong. Still some general observations should be possible. I am teaching environmental ethics, which includes reflection of how economic measures can support environmentally good action.
In banking, which is part of applied economics (and not only economic theory) there is an expression 'credit', which comes from the Latin very 'credere' ' to believe, to trust', which of course is a very important ethical aspect of giving a 'credit'. Economics, the science how an economy should work is a reflection of what a society considers important. A demand side economical thought gives preferences to the consumer, sees an economy doing well, when consumers have purchasing power, meaning money in their pockets. A supply side economy looks more at the producer and tries to support the production side of an economy.
I am not really an economist, but a geographer, but economy, meaning the production of goods and provision of services have always made great impact on spatial aspects. I am e.g. also teach environmental management and principles such as demand and supply have great impacts on scarcity and with it on resource use and environmental impacts. One issue I notice at times is that there are economists who think that economy is the driving force of how societies do and how they function. I feel that many other considerations are important and that economy is embedded into societies, into their value systems. Ethics is not static, but ethics is constantly changing. Changing with society, with priorities societies have, with value systems societies develop and change...... .
Naushad Khan
Khan sahib, professor ji, please give an example where there may be a conflict between efficiency and ethics in economics. Please do the needful. You are most kind.
Eberhard Weber Are you a consequentialist? Deontologist? Or somewhere in between?
Two important things from economics. First, explaining each economic event using an economic model that is based on economic theory as an analytical tool. Second, predict what will happen to economic indicators in the future. Using these two benefits of economics, economic actors such as companies, governments, and consumers choose what activities are carried out that have optimal benefits.
since the reaources are scarce and we should know the science of managing those limited resources, if we didn't have such science then we will have been a disbalance even from our daily matters until governance. The very science is named as 'economics'.
Paul: Economics is only important if you want to know about the economy, demand, supply, prices, wages, unemployment, inflation, fiscal policy, monetary policy, markets, consumers, and business.
Economics is important for many areas of society. It can help improve living standards and make society a better place. Economics is like science in that it can be used to improve living standards and also to make things worse. It partly depends on the priorities of society and what we consider most important.
Economy is life itself. Since the ancient times, people have had to use their resources economically to sustain their lives. Nowadays, the continuous increase of the world population, the diversification of the needs of people due to the level of civilization and culture, and the increase in the amount of resources, while the rapid depletion of available resources, has brought the discipline of economics and also economic problems to more serious dimensions. Today, thousands of people are dying of hunger and billions of people are trying to live below the hunger limit.
Economy as a science learns us how to live and how to interact with others.
Economics is a way of life.In business world, economics plays a very significant role.
The state of India today is because of inadequate attention to economics & too much attention to politics!
Economics provides a framework for understanding the actions and decisions of individuals, businesses and governments. It provides a means to understand interactions in a market-driven society and for analyzing government policies that affect the families, jobs and lives of citizens.
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