What does economics contribute to the world?

Serpents Dream: What does economics contribute to the world?
I am a senior finishing up my BS in economics and I feel… empty, I have done all this math work but unlike an engineer or scientist it feels like I won’t really be adding anything to society. I am going on to complete a masters degree in statistics after and I dread going into an econometrics job because it would just be like adding another lawyer to the world, they are societal leeches. I don’t want to think this about economics, does anyone have a different perspective?

Answers and Views:

Answer by Tothepoint
I think that economics is fascinating. And it also cheers me up by reminding me of all of the progress that we have made and will continue to make.

Eventually economists will learn enough to help us avoid catastrophes like this recession. Isn’t that enough of a contribution?

Answer by Anjaree
You are going to be the best fortune-teller in the world, and can save millions.Please tell the people, rich and poor alike, that you see the bubble and when it is going to burst.

Answer by Sienna
Well there’s good news and bad news.

Good economics contributes to the world universally true propositions of human action. It distinguishes the consequences of human action that necessarily follow, from the parts that are contingent and variable.

Bad economics purports to copy the method of the natural sciences, acts as if it is an empirical science and fails because the subjective element of human action, the value judgments that underlie all prices, cannot be quantified or measured. Thus prices are not meaningfully amenable to the mathematical operations (apart from basic economic calculation), which is why econometrics has never come up with a single proposition of universal validity, and regards all its knowledge as probablistic. All that statistics studies is economic history. To prove universally valid propositions of human action requires recourse to logic, not probability. Empirical study does not of itself prove causal relations, which requires reference to underlying theory based on pure logic. Otherwise all one has is a jumble of empirical measurements, referring back to another jumble of empirical measurements or summations of such measurements, without the ability to tell whether the supposed effect is *because of* or *despite* the supposed cause.

What is worse, economics is used as a pretext for pleading for special government interventions of many kinds
a) without a basis that withstands critical scrutiny because of the problems mentioned above, and
b) falsely pretending to a scientific or value neutral status.

That is why most economists are employed by the state. They function as high priests, preaching to the masses that Pharaoh can do no wrong, even as he defrauds them. In the service of government, they are societal leeches, sorry to say.

But the good news is, the training you have received is an excellent background for understanding sound economics, which is based on logic, not mathematics. It enables you to explain to people how they are being parasitised as no other discipline can.

Answer by CC
I felt the exact same way that you do when I graduated with an undergrad econ major. I worked at a think tank for a couple years, and continued to feel like I wasn’t really contributing anything besides ideas.

I went back to grad school to get an MBA, and then things got much better. I learned business skills and felt like I could now contribute something of value. Having an econ background was great because I understood a lot of the science and theory behind business, and I was now developing the tools to act on those theories in real-world situations.

Career-wise, an MBA will give you the practical skills to really deliver at the companies you work for and be an MVP.

I would think of your econ degree as being like a degree in physics and then an MBA like an engineering degree. They’re complementary. One is theory, the other is an application of theory.

If you’re already feeling like econ is leaving you empty, I would avoid a masters in statistics. I love math and all, but it narrows your career options (some marketing departments need statisticians and insurance companies need actuaries, but you’ll find more opportunities with other degrees).

Hope this helps you to think things through. I definitely know where you’re coming from.

Good luck!