“The characteristic feature of this age of destructive wars and social disintegration is the revolt against economics.”
Part of the war on economic science, especially in recent years, has been the presentation of information that is meant to paint economists as “bad” people. Studies have been published which show that economics students tend to be more individualistic, less charitable, less concerned with equality, and less supportive of government action, whether regulatory or distributary. Of course, while this campaign on the character of economists probably has its intended effect on the minds of the public, it does nothing to cast doubt on the teachings of economics itself. Unable to refute the truths given by the sciences of human action, the proponents of collectivism instead smear those who relay such truths.
Of course, there’s nothing wrong with being less concerned with equality or less supportive of government intervention. From a different viewpoint than that of the Leftist writers of these character-attacks, these traits might even be considered virtues. But, rather than meet these Leftists on their own ground, I will make an even stronger claim: the study of economics has actually made me a better person, even from a Leftist point of view.
The study of economics is the study of people. An understanding of economics is an understanding of how others act. And through this understanding comes peace, acceptance, appreciation, and hope for the future.
Economics teaches that every action is undertaken in an effort to remove some felt uneasiness. In other words, everything that people do is an attempt to be happier. Observing the actions of others, I know that they are driven by the same motive as I am; the pursuit of happiness. Understanding their motive allows me to empathize, and to forgive. Moreover, the economists have demonstrably proven that value is subjective, existing only in the minds of acting human beings. Therefore, there is nothing inherently better about reading the Wall Street Journal than reading People Magazine. Understanding that value is subjective encourages humility. I cannot judge the choices of others, for I know that they’re just doing what they think is best for themselves.
A proper study of economics leads to the realization that only the individual acts. Understanding this allows the economist to see through the words of a politician, always employing the royal “we,” and realize that not everyone who the politician claims to represent actually agrees with his views. Not every NRA member shares the sentiments of Wayne LaPierre. Not every African American agrees with Al Sharpton. A knowledge of economics reduces the tendency to stereotype people. When I meet a new person, I view them as an individual with certain characteristics, not as a faceless member of a certain group.
Economics provides an understanding of scarcity, and an understanding teaches us that everyone faces choices. There are not enough resources to accomplish everything we desire; we must choose between alternative ends, selecting the most important desires for satisfaction, and leaving all other desires unsatisfied. This helps in the political scene, as I’ve stressed before. Conservatives don’t oppose government health care because they want people to be without health care; they oppose government health care because they value other uses of that trillion dollars more than universal health care. However, this knowledge can help in your personal life, too. For example, imagine that you call a friend and ask them to go out with you tonight. They say no; they’re going to the gym instead. The sense of rejection sets in. But the economist realizes that your friend did want to go out with you; it’s the scarcity of time that forced him to decline your invitation. He wants to go out with you, but he also wants to go to the gym. He can’t do both. Choosing the gym because he’s training for a marathon is not the same as rejecting you because he doesn’t want to see you. He values you; but, tonight, he values his fitness goals just a little bit more. Understanding this necessity to choose between valued ends helps the economist avoid feelings of offense or rejection.
An understanding of economic growth provides hope for the future, by revealing that there is a way for humanity to reduce the burden of scarcity and to raise standards of living for everyone. It also provides appreciation for our forbears who left behind the enormous capital stocks we employ today. An understanding of the division of labor provides a sense of peace because I know that each day, despite the rhetoric in the news, people choose to continue cooperating with each other. It also provides a desire for peace because that is the condition most conducive to cooperation and economic progress.
For the past year I have been studying law. Now, the study of law is, in a word, all-consuming. Therefore, I have not engaged in much economic thinking this year. Moreover, the overwhelming volume of information thrust upon beginner law students had the effect of pushing a lot of old information out of my mind. Use it or lose it, as they say. Fortunately, I’ve been rather forcefully reimmersed in economic theory over the past two weeks through my preparation for and participation in an economics seminar at the Mises Institute. The experience has been rigorous, but satisfying. Reacquainting myself with economic theory has allowed me to regain a proper view of the world, one I had not realized that I had lost until I found it again. Therefore, I am grateful for the opportunity this project is providing me to continue using economics and improving myself.
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