What Are the Benefits of Learning Economics?

Governor Blog 8 Comments

There are many !
UPDATE as of 19th Nov 2021 I need to include Finance Minister Lawrence Wong towards the bottom of this article. I know him personally and in fact he guided me when I was an intern in the Ministry of Trade and Industry! He is a very sharp economist. Another example of the power of learning economics! Today, he is the man who will determine how much money stays in our pockets and whether we get locked down or not !!! 🤣 Firstly, learning economics enables one to acquire critical thinking and evaluation skills. Many examination questions require significant analysis and the ability to explore various angles to an issue. Higher order thinking skills are required. With my experience training senior corporate executives in thinking skills, I am able to coach and mentor my economics tuition students quite effectively including teaching them useful evaluation frameworks such as FEAST (Feasibility, Effectiveness, Appropriateness, Side-effects and Timing).
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"So, by learning economics, one is also learning to become a successful Entrepreneur, Manager and Business Consultant."
Secondly, learning economics enables one to make better decisions. Apart from the thinking skills mentioned above, there are also valuable concepts like opportunity costs and marginal analysis that will enable one to make more correct or optimal decisions. For example, one may have purchased a country club membership in KL, Malaysia. However, the cost of purchase should not influence one’s decision as to whether to drive up there for a holiday. That would require marginal analysis, which is to consider the incremental benefit and cost of another holiday up in KL, and the cost of the membership purchase should not matter. Yet we may hear ourselves say: “Aiyoh, already paid $20,000 for the membership…must use lah.” That may be how we feel, but it is not sound decision making.
Thirdly, firm strategies is a sizeable topic and that includes how firms may compete, how firms may set prices and implement strategies to raise revenues and cut costs. All these knowledge will be very useful for starting and growing a successful business in future. So, by learning economics, one is also learning to become a successful Entrepreneur, Manager and Business Consultant. Not to mention, economists are in high demand by Governments and Banks and those jobs usually pay well.
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Fourthly, the knowledge of economics can enable one to make shrewd investment decisions. With the knowledge of various economic theories, one can forecast changes in asset prices, exchange rates and other economic data which will impact financial investments. (A side effect (benefit?) is that you may become very popular with many trying to fish out insights and forecasts. I speak from personal experience. 😁
Fifthly, if we look at the Government of Singapore today, we will find many ministers who are trained in economics. Tharman Shanmugaratnam, Chan Chun Sing, Ong Ye Kung, Heng Swee Keat are some examples. Why is that so? I believe it is due to the cumulation of the first four benefits. A lot of sound policy making benefit from application of economics concepts.
Gosh! That also means one of my students may have a very high chance of becoming Singapore’s future PM!!!
3Gto4G benefits of learning economics
Finally, if one becomes unemployed in the future, at least he will be able to understand why and be able to name the type of unemployment! (Yes, Singaporeans, please take note, this is an examination question!! LoL)
The benefits are many. But the learning journey is not that easy…
Related Post: Is Economics Tuition Necessary?

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Comments 8

  1. Pingback: Learn all Benefits of Studying Economics in Singapore - reliablecounter blog

  2. I think it is also important to note that these benefits can only be reaped if the students are able to apply the things they have learnt to their everyday lives. But in order to do that, they need to understand (as opposed to memorising) what they have learnt.

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      That’s certainly true. That’s what we focus alot on here @ TheEconomicsTutor. Understanding is critical. Application cannot happen without sound understanding. This is especially needed for higher order questions tested in Case Studies.

  3. No doubt, Economics is an important and beneficial subject. The benefits you had told us in your blog are very helpful for students who want to learn economics. Thank you for such a wonderful sharing!

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