March 24, 2013

Why is it Essential for Economist to Use Numbers in Analyzing Economic Problems?

Economics is numbers, that is how I define economics in numerical terms. Yes, economist can analyze economic problems using logic (using ifs and thens) but we all know that for some people one explanation is not enough so most economist needs to put their explanation in numbers, statistical test and the likes. Other school of thought practice the same thing. As an example, imagine you are proposing a policy regarding RH bill and you are saying that the bill should be passed because the population is growing without considering the numbers. Yet, is it important to analyze first the standard annual growth of the population? Or to answer first whether we are over populated based on geograph, urban and rural distribution, and the likes? This means that we will need numbers to answer these questions.

That is why for those of you planning to enter the school of economics I advise to review your math and statistics since this will be part of your life as an economist. For those who are arguing that numbers are not needed to address economic problems, what I can say is that maybe they have a point, but it is our advantage who can understand words and at the same time understand numbers. Cheers!

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