A short note on economics education

One of the most important concerns in a market economy is to ensure (as far as possible) an optimum allocation of resources by free economic players. How should producers use their capital to precisely and efficiently fulfil the demand of the consumer? How should savers, financial institutions and investors use their capital to effect the most profitable outcome? How should consumers use their resources to optimize consumption? And how should government frame their policies and measures to encourage producers (including state enterprises), consumers and investors to react most effectively and accurately to market signals?

The market works for better or for worse very much dependent on the quality of information available to producers, investors, government and consumers and how well they are able to use this information. Thus one key argument for providing high quality economics education to the masses is basically to facilitate both the provision and analysis of market and general economic information.

Why provision? Because the higher the number of financially literate (and interested) folks, the greater will be the demand for high quality financial information, and hence the incentives for services such as business newspapers, magazines etc.. The demand for quality is of course also ensured only by an informed and interested readership. And on the analytical portion, only an informed readership can analyse the information in question, and react intelligently and swiftly.

Sadly economics is so badly taught (in general) and made so boring that most people, even our college grads, are usually financially illiterate. I believe that a good indication of high national financial literacy is a low rate of gambling and vice versa. Should we surprised at Singapore's high rate of gambling 'investment' and low rates of private enterprise? Then again, I must say there is perhaps no population in the world which is truly financially literate. For now, this form of literacy is still the province of an elite.