Importance of Economics

Economics can be considered as one of the most important subject compared to any other subject. The reason why economics gains its importance day by day is that it makes human welfare as a primary concern. It helps in take up the standard of economic life. As it greatly helps in the solution of economic problems, so it exercises an over-whelming influence on the minds of the people. Durbin defines "Economics is the intellectual religion of the day". About the significance of economics Malthus remarks "Political economy is possibly the only science of which it may be said that the ignorance of it is not only a divergence of good but produces big positive evil". 

Economics as subject is very useful as it broadens our outlook, sharpens our intellect and inculcates the habit of balanced thinking. The study of economics makes us realize that we human 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. The practical advantages can be looked at from individual and community point of view.

The study Economics is useful as it enables each of us understand better are appreciate more intelligently the nature and significance of our money earning and money spending activities. With the knowledge of Economics, a man can better adjust his expenditure to his income. Economics is very helpful for producers, distributors and consumers. Economics suggests them the ways of bringing about the most economical combinations of the various factors of production, distribution and consumption at their disposal. It also helps in solving various intricacies of exchange. From the knowledge of Economics, anyone can easily think as to why the prices have risen or fallen. With the knowledge of Economics we find that every individual can rightly hope to become a better and more efficient consumer, producer and businessman, if he has the knowledge of Economics.

The study of economics is not only helpful from the personal point of view but it is also very functional for the welfare of the society. It enables a statesman to understand the economic problems facing by any country. Every government has to tackle different kinds of economic problems such as unemployment, inflation, over production, under-production, imposition of tariffs and control, problems of monopoly etc. The statesman can successfully solve the problems, thorough the knowledge of Economics. The finance ministry of every country should be the knowledge of Economics that they raise revenue by imposing taxes on the incomes of the people for meeting the necessary expenditure of the government.

Economics is very helpful in removing traces of poverty from the country. If we take the example of under developed countries, they are confronted with different kinds of problems. They have low per capita income, low productivity of agriculture, slow development of industries, rapid increase of inflation, increase in population, etc. The study of Economics helps in making ways and suggesting practical measures in solving these problems.

The importance of Economics, it is rightly remarked by Wotton that "you cannot be in real sense a citizen unless you are also in some degree an economist". Because the world is changing very fast that we are completely now living in a world dominated by economic forces. 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 its citizens. But if the citizens have knowledge of Economics such as inflation, unemployment, balance of payment, balance of trade, dumping, imperfect markets, mechanism of agriculture co-operative farming, fragmentation of holdings, fiscal and monetary policy then the government will be very careful to spend the money in a wise manner.