Why Study Economics?

INTRO: Aristotle said that man is a political animal. He said the truth. However, it is no less a truth that man is also an economic animal. Economics is a field of study, one of those that have attracted the definitional interests of scholars. A couple of the definitions will concern us here. In his magnum opus (greatest work) published in 1776, and titled, Inquiry into the Nature and Causes of the Wealth of Nations (Wealth of Nations for short), Adam Smith defined economics as an inquiry into the nature and causes of the wealth of nations. This is a way of saying that economics is a study which focuses on the nature of the wealth of nations, and the study of the things that make nations wealthy. This definition captures the economics of the state in a broad subject of political economy (macro-economics). But then, economics is more than that, including individual persons’ economics (micro-economics). The ability of Professor Lionel Robbins to capture the individuals in his definition of economics rendered his definition as the most accepted definition of economics. He defined economics as a social science which studies human behaviour as a relationship between ends and scarce means which has alternative uses. The resources are scarce, and the study of how the scarce resources are applied in satisfying a need instead of another is the length and breadth of economics. The focus of this piece is on the reasons that justify the study of economics in Nigeria and beyond.

The guiding question is: Why study economics?

The reasons to study economics are:

1.  Management of Resources: 

This is the foremost reason in the study of this discipline.  Needs are numerous but the resources are scarce. This makes it imperative that the scarce resources must be expended on priority needs, more so, in the harsh economic realities of the country. The knowledge of the discipline introduces the student with the concept of scale of preferences in which needs are arranged in order of importance, then choice, and forgone alternatives which are needs that their satisfactions were sacrificed for the choice. Without economics, the scarce resources would be expended on frivolous needs. By and large, one chooses to study economics because it is germane in efficient and effective management of resources. 

2. Career Training: 

Elsewhere, this is presented as career prospects. The study of economics trains the economists which can be employed in virtually all the organisations. As a matter of fact, states need economists, businesses need economists, and the individuals need economists. In fact, the Nigerian State has dire need of sound economists to change the economic narratives of the country. Simply put, the jobs of the economist are in high demand. We have said it earlier that man is an economic animal, and it follows therefore to mean that wherever there is a man, there is economics, but it is one thing to be an economic animal and another thing to be an economist. The former is by default, and the latter is by training.  Economists are highly sought after by men, the economic animals, in Nigeria and beyond.

3. Leadership Roles: 

Econonmics prepares the student to be fit for leadership roles in the state, and in business organisations. Leadership entrusts the economic well-being of the members of the state or the organisation on the leader. In this regard, people study economics because they are interested in leadership positions. The knowledge of economics helps the leader to devise policies and programmes that will increase the wealth of the followers. At the state level, politics affects economics, and vice-versa. Success in political leadership is therefore, highly dependent on the success of the economy. This truism makes it imperative that the leader must be grounded in the dynamics of the economy.

4. Economic Problems: 

We have said it that the study of economics is important for resource management. Particularly however, the study of economics is needed for solving basic economic problems of what to produce, how to produce, and for whom to produce. The study of economics equips the student with the analytical tools to solving the basic economic problems for efficient and effective economic decisions. 

5. Understanding the 

Workings of the Nigerian Economy: 

The domain of economics is filled with abstract thoughts. For instance, the “invisible hand of demand and supply” as a controller of the capitalist economy is not readily understandable except when the study of economics comes in assistance. The study of economics makes the abstract terms used in characterising the material conditions of man very understandable.

6. High Pay Packages for Economists: 

We have already said it that the jobs of the economists are in high demand. With this at the back of your mind, it is my pleasure to tell you that one of the laws you will see in the study of economics is that the higher the demand, the higher the price. The economists are well-paid in Nigeria, thanks to the high demand for their services! There is also the benefit of being close to the resources which you manage, and this could mean access to capital, all things being equal. 

7. People study economics because of academic certificate. 

Economics as a course of study in Nigeria just like elsewhere is an academic discipline that one could major in. Many Nigerians engage in the study of economics just for the knowledge and its attendant certificate. The qualification could be employed in securing jobs, or for being a researcher in the discipline,  and or for postgraduatestudies.