Importance of the Study of Economics:
The importance and utility of
the subject of Economics can be judged from this fact that it is now considered
to be one of the most important and useful subject as compared to any other
branch of knowledge. The reasons for gaining its importance are that it makes
human welfare its direct and primary concern.
It helps in raising the quality of
economic
life. As it greatly helps in the solution of economic and. social
problems so it exercises an over-whelming influence on the minds of the people.
In the words of Durbin:
“Economics is the intellectual religion of the
day”.
About the importance of Economics Malthus remarks:
“Political
economy is perhaps the only science of which it may be said that the ignorance
of it is not merely a deviation of good but produces great positive evil”.
Edmund Burks is not wrong in saying that:
“The age of chivalry has gone,
that of sophistry, economists, and calculators has succeeded”.
Advantages of the Study of
Economics:
The advantages of the study of
economics are as under:
(1)
Intellectual Value:
The knowledge of Economics is very useful as
it broadens our outlook, sharpens our intellect, and inculcates in us the habit
of balanced thinking. The study of Economics makes us realize that we as human
beings are dependent upon one another for our daily needs. This feeling creates
in us the intelligent appreciation of our position and the spirit of
co-operation with others.
(2) Practical Advantages:
The practical
advantages of Economics are much more important than its theoretical advantages.
These advantages can be looked at from the individual and community point of
view.
(3) Personal Stake in Economics: From personal point of view, the study
of Economics is useful as it enables each of us to understand better and
appreciate more intelligently the nature and significance of our money earning
and money spending activities. With the knowledge of Economics, the consumer can
better adjust his expenditure to his income. The study of Economics is also
useful to a producer. It suggests him the ways of bringing about the most
economical combinations of the various factors of production at his disposal. It
also helps in solving the various intricacies of exchange. From the study of
Economics, one can easily judge as to why the prices have risen or fallen. The
knowledge of Economics also explains us as to how the reward of various factors
of production is determined. Thus, we find that every’ individual can rightly
hope to become a better and more efficient consumer, producer and businessman,
if he has the working knowledge of economics.
(4) Economics for the Leader: The study of economics is not only
helpful from the individual point of view but it is also very useful for the
welfare of the community. It enables a statesman to understand and better grasp
the economic and social problems facing the country. Every government has to
tackle different kinds of economic problems such as unemployment, inflation,
over production, under-production, imposition of tariffs and control, problem of
monopolies, etc. the statesman can successfully solve these problems, if he has
thorough knowledge of the subject of Economics. The knowledge of Economics for a
finance minister is also indispensable. He has to raise revenue by imposing
taxes on the incomes of the people for meeting the necessary expenditure of the
government. Economics here comes to his rescue and guides him as to how the
taxes could be levied and collected.
(5) Poverty and Development: The greatest advantage of Economics
is that it helps in removing traces of poverty from the country. Take the case
of Pakistan; we in Pakistan are confronted with different kinds of problems. For
example, low-per capita income, low productivity of agriculture, slow
development of industries, fast increase in population, under-developed means of
communication and transport, etc. The study of Economics helps in devising ways
and means and suggesting practical measures in solving these problems.
(6) Economics for the citizen: Such being, the importance of study
of Economics, it is rightly remarked by Wooten that “you cannot be in real sense
a citizen unless you are also in some degree an economist”. He is perfectly
right in giving the statement. The world is so fast changing that we are
completely now living in a world dominated by economic forces and economic
ideas. If the people of any country do not have the working knowledge of an
economic system; then the government of that country can easily hoodwink
citizens have knowledge of Economics, then the government will be very vigilant
and spend the money in a wise manner.
The importance of the study of
Economies can also be judged from this fact that the daily newspapers cannot be
understood without some knowledge of Economics. The newspapers often describe
complicated economic problems such as inflation, balance of payment, balance of
trade, imperfect markets, dumping, co-operative farming, sub-division and
fragmentation of holdings, mechanization of agriculture, If you do not have
working knowledge of Economics, you cannot understand these diverse problems.
From brief discussion, we conclude, that the knowledge of Economics is very
useful. As such it is necessary that every citizen, worker, administrator,
consumer, etc., should have at least working knowledge of it. In the words of
Sir Henry Clay:
“Some study of Economics is at one a practical necessity and
a normal obligation”.
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