Importance of Economics:
Economics has become one of the major branches of social sciences. This is of enormous practical value in our day by day life. In pure sciences, we study the subject to arrive at the truth. However an economist is a social scientist. He studies the subject not merely to know the truth for its own sake, however to find out a manner for many economic and social troubles of the society. “Knowledge for the sake of knowledge” is not the aim of an economist. Economics should be fruit-bearing. Obviously, an economist has no readymade response for immediate troubles. However he can aid the Government in making broad economic policies. According to Keynes, “the hypothesis of economics does not furnish a body of settled conclusions instantly applicable to policy. It is a technique, instead of a doctrine, an apparatus of the mind, a method of thinking that helps its possessor to draw right conclusions”.
Most of the troubles of the current State are economic in nature. Therefore economists play a significant role in the affairs of the State. During World War II, the German economy was harmed heavily. There was shortage of goods, inflation, and mass unemployment. However the German economy recovered rapidly by following the advice of an economist Ludwig Erhard. The German recovery is considered as an economic miracle.
Likewise, J.M.Keynes had great influence on the economic policies of the American government whenever it was in great economic trouble during the year 1930s.
In economics, we study about things such as rent, prices, wages, interest, profits and taxation. All such affect every person one manner or the other. It has been rightly said, “You can’t be in any real logic a citizen, unless you are too in some level an economist”.