On The Importance of Economics

On The Importance of Economics
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By Sajad Hussain Din

Common people have become more engrossed in the role economics plays in our daily lives. Economics is concerned from the property market to the macroeconomics of the household budget. Almost everything is connected to economics and, therefore, its interpretation is enthralling. For the upgrading of employability in banking, government sector, NGOs and businesses, and so on , attaining a comprehensive understanding of the diverse ways that people scrutinize economic phenomena allows for more compliant and ingenious practice.
For instance, Development Economics can expose exhilarating ideas and elucidations regarding the big concerns of the 21st century such as poverty, inequality, unemployment and globalization. The exigent need is to cultivate international acquaintances to reveal economic propensities. There is also a need to introduce a deep understanding of specific countries and issues established on tangible analysis of antiquity, establishments and political economy. It is an opportunity that will undoubtedly instigate economists to rethink their approach to economics.
Economics can be used to fight poverty by implementing the right economic policies. Politicians have to translate research into action by instigating appropriate plug-ins. There is a need to ascertain explicit programmes that can assuage poverty, ranging from low cost medical treatments to innovative education programmes. We need to examine the causes of unemployment, absenteeism in education, social programmes and other related issues.
Economic output (GDP) and inflation are two significant features that need to be studied meticulously. The relationship between GDP and inflation, how they interact, how much inflation is good annually, are the factors of both academic and practical interest. There is supposed to be no profit if the GDP is constant or declining. On the other hand, if the GDP is increasing, it may intensify inflation. A minor escalation in percentage of GDP growth per year is rewarding for the economy without any side-effects. This annual GDP may drop the unemployment rate. In order to maximize profits, wages are to be raised, which will in turn result in higher prices. Some economists argue that 0% inflation is ideal for stable prices. On the other hand some argue that a little inflation is a good thing.
In India, 20% of the educated youth are unemployed. The priority should be to create jobs. The economists and engineers need to brainstorm together to make proper economic policy. The government needs to target the job growth and should emphasize on economic expansion for job-creation. In order to boon the economy we need to be clear about health and education, agriculture and rural development, urban and infrastructure connectivity, manufacturing and exports, and employment. We need an intuitive outlook on several facets of economy and policy-making.
Economic growth can be sponsored through innovation, start-up, job-creation, risk taking and ingenious ideas. We should always reassure innovation and entrepreneurship. Those policies should be employed that promote innovation to certify that there will be adequate prosperity. We need not to reward unemployed because it only leads to more redundancy. It will only lead to pandemonium if the jobless stay unemployed for longer time. If the jobless contribute to the benefits of the society, they can gain skills, contacts and references which will in turn make them successful in the next job they attain.

—The author, a PhD, is at the Department of Mechanical Engineering, NIT, Srinagar. He can be reached at: Sajad_08phd12@nitsri.net