Importance of Economics
Economics has become one of the important branches of social sciences. It is of great practical value in our daily life. In pure sciences, we study the subject to arrive at the truth. But an economist is a social scientist. He studies the subject not only to know the truth for its own sake, but to find out a way for many economic and social problems of the society. 'Knowledge for the sake of knowledge' is not the goal of an economist. Economics must be fruit-bearing. Of course, an economist has no readymade answer for immediate problems. But he can help the Government in making broad economic policies. According to Keynes, 'the theory of economics does not furnish a body of settled conclusions immediately applicable to policy. It is a method, rather than a doctrine, an apparatus of the mind, a technique of thinking, which helps its possessor to draw correct conclusions'.
Most of the problems of the modern State are economic in nature. So economists play an important role in the affairs of the State. During World War II, the German economy was damaged heavily. There was inflation, shortage of goods and mass unemployment. But the German economy recovered quickly by following the advice of an economist Ludwig Erhard. The German recovery is considered an economic miracle.
Similarly, J.M.Keynes, had great influence on the economic policies of the American government when it was in great economic trouble during the 1930s.
In economics, we study about things like prices, rent, wages, interest, profits and taxation. All these affect every person one way or the other. It has been rightly said, 'you cannot be in any real sense a citizen, unless you are also in some degree an economist'.