Economics in Action

Muhammad Yunus and the bank he founded to help the poorest Bangladeshis out of poverty have been awarded the 2006 Nobel Peace Prize “for their efforts to create economic and social development from below”.

Yunus pioneered microfinance; small loans made to people whom traditional banks would ignore as too high-risk. Talking to the BBC, he responded, “As a Bangladeshi, I’m proud that we have given something to the world. Our work has now been recognised by the whole world.” Several links found via MetaFilter.

The Economist devotes 15 pages to the coming battle for talented employees. Many firms have gone as far as they can with automation and streamlining, so further improvements in productivity have to come on the human side, meaning their ability to recruit and keep bright, talented staff. While manual workers are increasingly replaced by automation, knowledge workers who can manage people and resources creatively and profitably will be increasingly in demand. As the workforce ages and jobs become more complex, competition for the best individuals will heat up.

You might be reading this as a young adult, considering how you will be earning money in the first half of the 21st Century. You might conclude that it is important to develop and prove your own abilities with a degree, especially in a course that involves numeracy and problem-solving. Far be it from WhyStudyEconomics to suggest a subject…

Further reading: “The battle for brainpower”, The Economist, 7th October 2006
Further reading: Frequently Asked Questions about studying Economics

From the New Scientist:

“An analysis of how cells in a tumour cooperate has provided a unique insight into the evolution of cancer, and may lead to new treatments.

“It makes use of ‘game theory’ the mix of mathematics and economics that has been invaluable in understanding how cooperation can evolve in animal societies, even when individuals are selfish.

“The ‘game’ to grow a successful tumour proceeds more efficiently for all [cellls] if they cooperate, and this can occur without requiring the players to make conscious strategies.”

Read more: “Do cancer cells cooperate with each other?”, New Scientist, 28 August 2006.

From the BBC, “Pupils warned A-levels unsuitable”, 23 August 2006:

“Pupils are being advised to avoid taking certain A-level subjects if they want to get places at top universities. Subjects less favoured […] include accounting, business studies, film studies, media studies and travel and tourism.”

From the London School of Economics and Political Science’s “How to Apply” page:

“Mathematics, French and Economics would be a suitable combination for almost any of our degrees. Mathematics, French and Business would be acceptable, but we would prefer the first example. On the other hand, Mathematics, Accounting and Media Studies would not normally be considered as suitable.”

The UK has the fourth cleanest water in the world, and the fourth highest per capita military spending. A coffee from Starbucks involves resources from up to nineteen different countries. These are some of the hundreds of facts presented in interesting visual summaries by the International Networks Archive. Topics include The Global Arms Trade, the Coming Water Wars and the global success of McDonald’s.

From Degree Doctor in the Times: “Whether you are driven by money or a desire to improve the lives of others, studying economics is a smart choice.”

“Employers place a high value on the quantitative, analytical and problem-solving skills that you have gained, but will also expect you to write and communicate effectively and work well in a team.”

“As well as learning why and how markets work, they are also exposed to why and how markets fail. They are learning a lot more about the environmental consequences. They are seeing some of the problems in the world around them from an economists understanding.”

See more about the jobs economics graduates do and the money you can make elsewhere on this site.