Why do we study economics?

This is a very valid question to ask, and I know that many students, particularly prospective university students, always ask, “Why do we study economics”?

For many people, economics is just one of those subjects that we do in the higher institutions, just one of the courses in the Social Sciences Department.

Just a throwback, when I was still in secondary school in Lagos State, Nigeria, one of my seniors back then, who just returned from school during one of their prolonged strikes, met me on the road and we exchanged pleasantries. I asked him what he was studying in the university, he smiled and told me he was in the Department of economics, I then asked him the question “why are you studying economics?” and he told me that he chose to study economics because according to his uncles graduates of economics can actually work any where, in any industry, in any office and in any business.

That was quite interesting. At that point in my life, I believed his answer was satisfactory, and I let him go. Today, having gone through the four walls of the university and at the PhD level, I now know better, so in this article I will be sharing with you some reasons we study economics.

The first reason for studying economics in any higher institution is to acquire knowledge in the area of scarcity and choices.

Next is to learn how to attract resources and apply them efficiently to recoup higher profits and economic benefits.

Next is to be able to understand how the real financial and business markets work and use what you have learnt in school to solve small economic and social problems.

Next is to understand government laws, policies, and operations so that you can help the government to efficiently plan its annual budgets, inflation rates, and grow the economy with ease.

Next is so that you, as a student, can efficiently plan your personal income and daily expenditures to reduce losses and make more money despite the volatility of inflation in the economy.

So, it’s still possible to work in every and any industry of the world with a degree in economics, but here’s the hard truth: only 5% of economics graduates have the potential to work anywhere, and that’s because many students just study to pass exams while in higher institutions. They don’t realize that a degree in economics is to enable them to solve human and social problems. The few who excel took their studies like their country’s challenges depended on them to unravel the solutions upon graduation, so they dug deep to crack theories, models, and statistics, carried out good research studies, and brought home values rather than results.

Are you still confused? Send me a dm now.