Why study economics?

Why study economics?

But just why study economics?

Economics is such a fascinating subject because it blends the soft qualities of human psychology and behavior with the hard qualities of finance, markets, and the trade of goods and services. 

The reasons for studying economics at high school or university most often relate to employment prospects. People who graduate from a university with a degree in economics are normally well equipped to go into several fields of employment, from marketing to finance to business administration. The models and concepts learned in an economics course are so invaluable to so many areas of higher employment that graduates — particularly when they pair the course with another degree like law or finance — generally don’t find it hard to get a job upon graduation. 

For me personally, the prospect of studying economics boils down to interest. Whether you’re aware of it or not, economics plays such a key role in how humans and businesses interact with each other, and how different categories of value change hands in the system, that it seems almost imperative to gain a proper understanding. 

In many respects, some of the greatest investors of the last hundred years — from Warren Buffett to Benjamin Graham — had a very attuned understanding of how free markets operated. This level of understanding of market economies allowed those investment titans to make informed decisions with their capital allocation decisions in a way that allowed them to exploit the inefficiencies in those market systems. 

If you study economics and gain a similarly advanced level of understanding about the topic, you too will no doubt be in a position to make shrewder business and investing decisions. 

So, why study economics? I think the three main reasons are: employability, interest, and exploitable understanding. But, really, the reasons ultimately come down to personal preferences.

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