Econ in general, no. The specific model of rational actors optimizing for outcomes, the intuition for why markets often succeed at delivering on desires (at least for those with money), and the practice of making multi-stage models and following an impact in one area through to others, yes. Nobody needs macro. Lots of people need to reflexively think of how other actors in a system respond to a change, and econ is one of the more effective ways of teaching this. Critical if you want to actually have a good understanding of multi-polar scenarios. What I’m talking about is rarely adequately understood just by studying game theory, which usually analyzes games too simple to stick in student’s minds, but it matters.
In addition to understanding what statistics are on a theoretical level, an intuitive understanding that getting the right numbers yields real benefits, and that the right numbers are very precisely defined, seems important.
These are both softer skills, but I think that they’re important.
A note of caution here. Econ is one of those disciplines where many people think they grasp the fundamentals, but actually don’t. I think if someone can’t give worked examples (with numbers or graphs) for concepts like deadweight loss, comparative advantage, or tax incidence, their intuition probably points in subtly wrong directions, and would benefit from learning this stuff systematically.
Econ in general, no. The specific model of rational actors optimizing for outcomes, the intuition for why markets often succeed at delivering on desires (at least for those with money), and the practice of making multi-stage models and following an impact in one area through to others, yes. Nobody needs macro. Lots of people need to reflexively think of how other actors in a system respond to a change, and econ is one of the more effective ways of teaching this. Critical if you want to actually have a good understanding of multi-polar scenarios. What I’m talking about is rarely adequately understood just by studying game theory, which usually analyzes games too simple to stick in student’s minds, but it matters.
In addition to understanding what statistics are on a theoretical level, an intuitive understanding that getting the right numbers yields real benefits, and that the right numbers are very precisely defined, seems important.
These are both softer skills, but I think that they’re important.
A note of caution here. Econ is one of those disciplines where many people think they grasp the fundamentals, but actually don’t. I think if someone can’t give worked examples (with numbers or graphs) for concepts like deadweight loss, comparative advantage, or tax incidence, their intuition probably points in subtly wrong directions, and would benefit from learning this stuff systematically.