Exploring the Teaching of Economics

As illogical as trying to launch a spacecraft without a complete understanding of the basics of physics, a neurosurgeon would attempt delicate brain surgery without understanding human physiology. Equally so, an architect would not dream of designing complex structures without a full grasp of engineering and design principles.

Why is it then that, despite significant numbers of students enrolling in economic studies each year, only a tiny fraction successfully transitions from academic institutions to the workplace with a solid, basic and broad understanding of economics? Employers often expect new job market entrants to apply their theoretical studies in practical ways. They anticipate a positive contribution to business development and growth based on the qualifications listed on their applicants’ resumes. This added pressure can result in immense levels of anxiety and feelings of insecurity and personal failure. 

What Makes Studying Economics So Difficult?

Higher education institutions (HEIs) continuously evolve to cater to their audience. Over time, they have effectively addressed the barriers of traditional classroom settings and rigid schedules. They now offer diversified and alternative learning delivery methods, such as online multimedia platforms, experiential learning, simulations, and open educational resources (OER). On the contrary, while delivery methods have evolved substantially, the approach to teaching economics has remained stagnant and rigid for decades. This highly significant subject has not seen the same level of innovation in its educational methods.

Remember that not all students aspire to specialise in direct economics-related fields. Many do not aim to become chartered financial analysts, economic advisors, investment banking experts, or stock market investment specialists. Yet, most multidisciplinary faculties, such as health sciences, engineering management, and international relations, include economic studies. Fields like legal studies and family and consumer sciences also incorporate economics into their curricula. However, these are often taught only at a foundational level.

After all, trade remains the cornerstone of our society. A medical practitioner focuses on health sciences, a lawyer on legal matters, and an architect on design and planning. In contrast, economics permeates every corner of our existence. We all engage in the buying and selling of products, services, labour, skills, time, and expertise. As such, most students attending HEIs will find economics a compulsory subject at some point during their course duration.

This raises a glaring question: Why is global economic literacy so low if economics is widely taught?

The Global Economic Literacy Rate

Measuring global economic literacy levels is challenging due to variations in definitions, methodologies, and available data. However, several sources and studies offer insights into financial and economic literacy among adults in various countries.

Based on specific metrics and studies used, some countries are consistently noted for their high levels of financial literacy, often also including aspects of economic literacy. The availability and granularity of data may vary across countries. Countries with high economic literacy rates usually have strong financial education programs. They also tend to have high levels of economic development and robust financial systems. Some nations, including Germany, Norway, Sweden and the United Kingdom, are often cited as having the highest financial and economic literacy rates worldwide.

However, these countries are rare, and global economic literacy rate levels indicate a concerning trend for the future. This is a worrying fact given the importance placed on future generations of job creators and entrepreneurs, collectively entrusted with maintaining and growing stable economies. They are expected to innovate and advance despite constantly increasing challenges. These challenges include regulatory hurdles, economic or political instability, and environmental crises.

Reform in Economic Teachings

The detail and depth of traditional academic teachings in economics are invaluable and necessary for those specialising in economic and financial fields. However, for multidisciplinary learners, economics remains a field filled with complexity and confusion. Overwhelming terminology, jargon, and abstract illustrations often blend into white noise. This blurring makes it difficult to distinguish between similar-looking graphs that represent entirely different concepts.

Perhaps this reflects the exact pain point;  a case of too much in-depth information, delivered too soon, and without clear and organised logical structure. This perception may explain why many people find economics complex and intimidating, which often leads to disinterest or avoidance of the subject.

Applied Logic: A Universal Framework

At the core of economics lies a fundamental concept known as ‘logic’. Logic implies the systematic study of principles for valid inference and reasoning. It  involves analysing and evaluating arguments to determine whether, or not,  conclusions flow from premises in a consistent and reliable manner. This process helps distinguish between valid and invalid arguments, based on our understanding and frames of reference. Logic is essential in fields such as philosophy, mathematics, computer sciences, and economics. It plays a crucial role in critical thinking, problem-solving, and decision-making processes.

This comprehensive definition of ‘logic’ supports the argument for immediate and urgent reform in economic teachings. It advocates for the ‘top-down’ teaching model or the ‘Big Picture’ approach to enhance learning. This approach allows learners to first gain an overview or broad understanding of a subject before exploring more detailed and specific concepts. It helps build a foundational framework that provides context for the more complex material that follows.

The ‘Big Picture’ Approach in Economic Teachings

This model involves transferring a basic yet broad economic understanding to create a solid foundation and holistic picture. It avoids immediate immersion in intricate details.  Learnings are then gradually expanded and presented in logical succession, from foundational,  to intermediate, and culminating in more advanced levels in a structured curriculum.

By first attaining a thorough grasp and broad understanding of economic principles and other key components in any economy, students build a strong foundation. They can then progress into more specific and detailed concepts with much clearer context. A logical path of progression would ideally begin with the most basic economic fundamentals at the grassroots level. From there, it would move on to cover various concepts in micro- and macroeconomics, money flow, and global trade. In addition, and because of the crucial role of financial markets and their related activities in an economy, it would be ideal to further include this area in the ‘Big Picture’ learning curriculum.

This approach not only energises students in the early stages, but also encourages them to pursue further studies in specific areas of interest. For those aiming to specialise in financial or economics-related fields, starting with a broad foundational understanding is essential. It provides them with a valuable perspective, enhancing their ability to excel in their chosen specialty.

Harnessing the Catalyst Effect Potential

Changing existing learning methods of a vast and intricate field, like economics, to apply the ‘Big Picture’ or ‘top-down’ teaching approach, may seem a daunting task. This complexity arises not only from the interrelated web of ideas and theories that influence each other. It is also shaped by academic and institutional bureaucracies, financial implications, and other practical considerations.

Despite potential objections, this desperately needed educational reform is crucial. The critical state of global economic literacy levels necessitates immediate action. Although it may take a long time for change to become evident and produce tangible results, the urgency remains.

In a fast-paced world, the importance placed on innovation and successful and sustainable entrepreneurship, has never been greater. These elements stimulate economic growth, foster innovation, and create jobs. They also address societal challenges, making them cornerstones of modern economies and drivers of future progress. Consequently, there is a growing demand for a quick, easy, and logical method of grasping complex economic concepts. Such a method is needed for their immediate and effective practical application. At its core, this is why we meticulously crafted our Economic Insight Online Course. The goal is to offer a practical and accessible understanding of economics, enabling learners to confidently apply their knowledge in real-world scenarios.

Hope and Action for a Brighter Tomorrow

In the midst of life’s challenges and mounting pressures, it is easy to feel overwhelmed and uncertain about the future. Yet, it is in these moments that our resilience and hope become most crucial. We must remember that our actions, no matter how small, have the power to initiate change and create ripples of improvement. Even if the benefits are not immediate or personal, the impact we make today can transform the lives of those who follow us.

Let us continue to push boundaries, innovate, and strive for better processes to pave the way for generations to come. Together, we can create a world where hope and progress flourish, proving that every effort, every step forward, truly makes a difference.