Study Economics To Win Every Argument

by Girish Menon

The Emperor's new clothes courtesy Cactus Records

Since 1992 when former US President Bill Clinton’s campaign manager coined the winning slogan, ‘It’s the economy, stupid!’ persuaders of all belief systems have been increasingly relying on economic arguments to win the debate. The Brexit vote and Trump’s election are recent examples of the success of an economic point of view to the detriment of all others. A student with a good A level in economics will be equipped to reason out the merits and demerits of each argument and defend her own belief system or prejudice.

The A Level syllabus

In the book The Econocracy three Manchester University students describe the irrelevance of their university’s economics syllabus, which failed to acknowledge and explain the financial crisis of 2008. On the other hand, the A level syllabus of the AQA board not only discusses the financial crisis of 2008 but also explores themes in behavioural economics, the fast emerging and highly popular area in modern economics..

In a nutshell an A level in economics is divided into two parts viz. Microeconomics and Macroeconomics. Microeconomics explores the theoretical utopia of a free market which is known as perfect competition and compares it with modern market phenomena like Monopoly, Oligopoly and Monopsony. Macroeconomics looks at the picture from a national point of view and explores themes like Inequality, Unemployment and Immigration, Economic Growth and Trade/Budget deficits. It also considers the tradeoffs that governments face as they try to resolve crises.

Am I suited for an Economics A Level Course?

Unlike economics courses at most universities which rely on a strong foundation in mathematics, an A level economics course is right for any student who has an A grade in Mathematics and English at the GCSE level. He should have a curiosity about the world he lives in, is able to think logically and must have a desire to debate issues based on evidence.

In short, an Economics A Level Course can combine well with the sciences, the arts, the languages as well as the humanities. You could do this A level especially when you wish to specialise in other subjects at the degree level.

What will I gain from doing the Economics A Level Course?

You will realise that there is no such thing as a free market. You will have heard politicians and other persuaders trying to praise the virtues of the free market. After doing an A level in Economics, you will understand the assumptions that underlie free market theory. You will then conclude that those arguing for a free market are not making objective arguments but are indulging in alternative facts.

You will realise the bluntness of economic policy tools and why governments are unable to solve the problems of climate change, rising inequality, racism and other social ills.

Most importantly, you will understand the meaning of economic terms. You will discover that many popular ‘economic arguments’ are actually political arguments couched in economic terms. You will then be able to indulge in debate in a confident manner and be able to point out loopholes in your opponents’ arguments.

Many handed person

A businessperson was once asked what kind of economist she wished to hire. She replied, ‘a one handed economist’. When she was asked to explain her strange reply, she said, ‘When I ask a question of an economist I want him to give me a straight reply and not resort to phrases like on the other hand…’.

A good A level economist may not be employed by the above businessperson, but he will get the ability to realise that almost all economic decisions are fraught with uncertainty and the law of unintended consequences. It will enable him to separate truthful people from snake oil salesmen. Isn’t that a worthwhile asset to have?

How three students caused a global crisis in economics - A review of The Econocracy

Aditya Chakrabortty in The Guardian

In the autumn of 2011, as the world’s financial system lurched from crash to crisis, the authors of this book began, as undergraduates, to study economics. While their lectures took place at the University of Manchester the eurozone was in flames. The students’ first term would last longer than the Greek government. Banks across the west were still on life support. And David Cameron was imposing on Britons year on year of swingeing spending cuts.

Yet the bushfires those teenagers saw raging each night on the news got barely a mention in the seminars they sat through, they say: the biggest economic catastrophe of our times “wasn’t mentioned in our lectures and what we were learning didn’t seem to have any relevance to understanding it”, they write in The Econocracy. “We were memorising and regurgitating abstract economic models for multiple-choice exams.”

Part of this book describes what happened next: how the economic crisis turned into a crisis of economics. It deserves a good account, since the activities of these Manchester students rank among the most startling protest movements of the decade.

After a year of being force-fed irrelevancies, say the students, they formed the Post-Crash Economics Society, with a sympathetic lecturer giving them evening classes on the events and perspectives they weren’t being taught. They lobbied teachers for new modules, and when that didn’t work, they mobilised hundreds of undergraduates to express their disappointment in the influential National Student Survey. The economics department ended up with the lowest score of any at the university: the professors had been told by their pupils that they could do better.

The protests spread to other economics faculties – in Glasgow, Istanbul, Kolkata. Working at speed, students around the world published a joint letter to their professors calling for nothing less than a reformation of their discipline.

Economics has been challenged by would-be reformers before, but never on this scale. What made the difference was the crash of 2008. Students could now argue that their lecturers hadn’t called the biggest economic event of their lifetimes – so their commandments weren’t worth the stone they were carved on. They could also point to the way in which the economic model in the real world was broken and ask why the models they were using had barely changed.

The protests found an attentive audience among fellow undergraduates – the sort who in previous years would have kept their heads down and waited for the “milk round” to deliver an accountancy traineeship, but were now facing the prospect of hiring freezes, moving back home and paying off their giant student debt with poor wages.

I covered this uprising from the outset, and later served as an unpaid trustee for the network now called Rethinking Economics. To me, it has two key features in common with other social movements that sprang up in the aftermath of the banking crash. Like the Occupy protests, it was ultimately about democracy: who gets to have a say, and who gets silenced. It also shared with the student fees protests of 2010 deep discomfort at the state of modern British universities. What are supposed to be forums for speculative thought more often resemble costly finishing schools for the sons of Chinese communist party cadres and the daughters of wealthy Russians.

Much of the post-crash dissent has disintegrated into trace elements. A line can be drawn from Occupy to Bernie Sanders and Black Lives Matter; some of those undergraduates who were kettled by the police in 2010 are now signed-up Corbynistas. But the economics movement remains remarkably intact. Rethinking Economics has grown to 43 student campaigns across 15 countries, from America to China. Some of its alumni went into the civil service, where they have established an Exploring Economics network to push for alternative approaches to economics in policy making. There are evening classes, and then there is this book, which formalises and expands the case first made five years ago.

 Joe Earle, centre, with the Post-Crash Economics Society at Manchester University. Photograph: Jon Super

The Econocracy makes three big arguments. First, economics has shoved its way into all aspects of our public life. Flick through any newspaper and you’ll find it is not enough for mental illness to cause suffering, or for people to enjoy paintings: both must have a specific cost or benefit to GDP. It is as if Gradgrind had set up a boutique consultancy, offering mandatory but spurious quantification for any passing cause.

Second, the economics being pushed is narrow and of recent invention. It sees the economy “as a distinct system that follows a particular, often mechanical logic” and believes this “can be managed using a scientific criteria”. It would not be recognised by Keynes or Marx or Adam Smith.

In the 1930s, economists began describing the economy as a unitary entity. For decades, Treasury officials produced forecasts in English. That changed only in 1961, when they moved to formal equations and reams of numbers. By the end of the 1970s, 99 organisations were generating projections for the UK economy. Forecasting had become a numerical alchemy: turning base human assumptions and frailty into the marketable gold of rigorous-seeming science.
By making their discipline all-pervasive, and pretending it is the physics of social science, economists have turned much of our democracy into a no-go zone for the public. This is the authors’ ultimate charge: “We live in a nation divided between a minority who feel they own the language of economics and a majority who don’t.”

This status quo works well for the powerful and wealthy and it will be fiercely defended. As Ed Miliband and Jeremy Corbyn have found, suggest policies that challenge the narrow orthodoxy and you will be branded an economic illiterate – even if they add up. Academics who follow different schools of economic thought are often exiled from the big faculties and journals.
The most devastating evidence in this book concerns what goes into making an economist. The authors analysed 174 economics modules for seven Russell Group universities, making this the most comprehensive curriculum review I know of. Focusing on the exams that undergraduates were asked to prepare for, they found a heavy reliance on multiple choice. The vast bulk of the questions asked students either to describe a model or theory, or to show how economic events could be explained by them. Rarely were they asked to assess the models themselves. In essence, they were being tested on whether they had memorised the catechism and could recite it under invigilation.

Critical thinking is not necessary to win a top economics degree. Of the core economics papers, only 8% of marks awarded asked for any critical evaluation or independent judgment. At one university, the authors write, 97% of all compulsory modules “entailed no form of critical or independent thinking whatsoever”.

The high priests of economics still hold power, but they no longer have legitimacy

Remember that these students shell out £9,000 a year for what is an elevated form of rote learning. Remember, too, that some of these graduates will go on to work in the City, handle multimillion pound budgets at FTSE businesses, head Whitehall departments, and set policy for the rest of us. Yet, as the authors write: “The people who are entrusted to run our economy are in almost no way taught to think about it critically.”

They aren’t the only ones worried. Soon after Earle and co started at university, the Bank of England held a day-long conference titled Are Economics Graduates Fit for Purpose?. Interviewing Andy Haldane, chief economist at the Bank of England, in 2014, I asked: what was the answer? There was an audible gulp, and a pause that lasted most of a minute. Finally, an answer limped out: “Not yet.”

The Manchester undergraduates were told by an academic that alternative approaches were as much use as a tobacco-smoke enema. Which is to say, he was as likely to take Friedrich Hayek or Joseph Schumpeter seriously as he was to blow smoke up someone’s arse.

The students’ entrepreneurialism is evident in this book. Packed with original research, it comes with pages of endorsements, evidently harvested by the students themselves, from Vince Cable to Noam Chomsky. Yet the text is rarely angry. Its tone is of a strained politeness, as if the authors were talking politics with a putative father-in-law.

More thoughtful academics have accepted the need for change – but strictly on their own terms, within the limits only they decide. That professional defensiveness has done them no favours. When Michael Gove compared economists to the scientists who worked for Nazi Germany and declared the “people of this country have had enough of experts”, he was shamelessly courting a certain type of Brexiter. But that he felt able to say it at all says a lot about how low the standing of economists has sunk.

The high priests of economics still hold power, but they no longer have legitimacy. In proving so resistant to serious reform, they have sent the message to a sceptical public that they are unreformable. Which makes The Econocracy a case study for the question we should all be asking since the crash: how, after all that, have the elites – in Westminster, in the City, in economics – stayed in charge?

The Econocracy is published by Manchester University.