The Latent Importance of Economists

Jubril Ahmed writes,

An economist specialises in the study of economics. He also formulates economic policies implemented by the executives so that the economy will work in the right direction.

It is saddening that many students of Economics do not even know the importance of their discipline and therefore grasp it trivially.

An economist is an engineer of every country, without whom the nation may lose its focus and essence. He repairs the economy when it is faulty and ensures equilibrium to prevent macroeconomic fluctuations.

An economist is a policy formulator who uses government expenditures and revenues via fiscal policies and decisions regarding interest rates, cash reserves, open market operations and other monetary policy instruments to influence the economy to achieve macroeconomic objectives, including employment, price stability, the balance of payment equilibrium, stable exchange rate, and economic growth and consequent development.

The achievement of these objectives will ensure considerable improvement in the living standard of the citizens as well as economic well-being. Conversely, when there are errors in the formulation of economic policies, such as making wrong use of fiscal and monetary policies, these will affect the whole economy.

For instance, an economist can make wrong use of government expenditures, revenues, cash reserves or interest rates whilst formulating economic policies. His mistake may lead to inflation, unemployment, poverty, the balance of payment disequilibrium, and other adverse economic phenomena.

Inflation will make the prices of goods and services unaffordable for average citizens. Balance of payment disequilibrium will dwindle the currency value against foreign currencies. Unemployment leads to a lack of jobs for the employable.

These problems and their likes will ultimately make life miserable for the citizens, leading to suicide, untimely death, thuggery, and criminal acts like armed robbery and banditry because of unemployment and poverty.

By and large, every student of Economics must treat this discipline with iron hands by exhibiting diligence, enthusiasm and utmost dedication to turn out to be reputable architects and builders of the nation’s future.