Why Economics is important?

One of the few positive aspects of crisis is that it makes us aware of the fact that understanding economic problems is complex, necessary and requires deep analytical skills in  Economics .

The study of economics helps to see the unexpected consequences of things, removing common places and prejudices.

It is attractive to those who love the humanities and those who prefer mathematical-quantitative ones.

It is also used to find jobs because the defining element of today’s world is its increasing complexity compared to 25 years ago. And the economy teaches us to understand it.

What are economics and what do they study?

Why are they useful and, above all, interesting? And why is the study of economics particularly important today? By “economics”,

I will immediately clarify, I mean economics in the strict sense (in Anglo-Saxon countries it is defined as “economics”), so distinct from the study of the disciplines of management or finance.

Economist’s Questions

Let’s start with a definition. Economics is “the social science that analyzes the production, distribution and consumption of goods and services”. Almost empty definition, and, unfortunately, very boring.

Despite the difficulties, there are many, perhaps too many, answers to grapple with. Especially today. This is because economy is everywhere, within our choices and our lives.

Anyone who believes they have something to say about wages, unemployment, inflation, poverty, profits: almost like the national football team.

It will be said: but physics is also in our daily lives. It is physics that explains, for example, why each of us has weight.

However, how do politicians and journalists, trade unionists and professionals not discuss their exhaustion on television to show the latest theory on the

Higgs boson (the so-called “God particle”)? The obvious answer is that it is a very difficult matter for scientists.

So is it necessary to conclude that the previous questions are easy to answer? Let’s take one: is it true that a large influx of immigrants steal the jobs of our home workers, or at least reduce their wages?

More analytical ability

A superficial assessment would conclude: immigrants offer cheap employment and therefore allow companies to lay off our workforce while simultaneously saving costs.

On the other hand, an economist would think so. The work of immigrants (less specialized) and the work of Italians (specialists) are two complementary goods.

That is to say: they are like ski boots, I don’t need one without the other. Similarly, skilled work is of little use if it is not accompanied by less skilled work.

Therefore, ironically, in various sectors of the Italian economy in crisis, for example in traditional such as textiles, many skilled Italian workers (technicians and engineers) would have lost their jobs if we had not had an increase in the influx of migrant workers.

In short: the work of immigrants often saves Italian workers, not the other way around (as much as the political rhetoric has been screaming for years).

What about wages?

In this case, given the data, the unknown habit is important in the current debate. Let us also assume that with 1 percent more immigrants, the wages of workers in our household fall: but do they fall 0.01 percent or 5 percent? The difference is great.

A discipline, econometrics, which is nothing more than statistics applied to economic problems, helps a lot. Econometrics is used to precisely measure economic relationships.

The previous example consisted of two parts. The first (to supplement) was a “model”. The second (“econometric” measurement) relates to the measurement.

Basically, doing economics that requires a clear distinction between cause and effect on a given phenomenon is that. Don’t think clearly about the problem and then ask for the data.

Therefore, I am presenting one of the few positive aspects of today’s crisis: It waves to us that understanding economic problems is complex, but necessary and requires in-depth analytical skills.

Economics does not tell us what to think, but how to think about the facts of the economy.

Which is much more complex, rich and interesting than just looking at the performance of exchanges, bringing a product to market or running a company.

What’s my opinion:

Personally, I believe that studying economics is like learning karate or any other art of self defense. First, it’s more fascinating and deeper than you might think.

But above all, it teaches clarity of thinking on a wide variety of issues and problems in our lives, a need to protect us from the often unbearable confusion of illogical and undocumented ideas that enliven our public debate.

The study of economics helps to recognize the unexpected consequences of things, to remove platitudes and prejudices.

It is attractive to those who like the humanities and those who prefer math-quantitative subjects.

Do you have to study economics to “find a job”? Too much of.

One element that defines the world today is its increasing complexity compared to 25 years ago. The questions asked at the beginning of the article prove this.

Companies, governments, international institutions and individual citizens are constantly confronted with this complexity.

Greater complexity simply requires more analytical skills. Economics builds on precisely this ability and ensures the quality that those who come to the first interview, wherever they may be, need: have something to say.

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