It is without a doubt that those who make money know much about the economy or specialists in banking. Despite, knowing economics how the market and money work and considering terms such as demand, supply, inflation, unemployment rate, economic growth, capital market, money market, and investment will help one to understand how the economy works.
Furthermore, knowing about economics will enable people to make the best choices, for instance, inflation tells by how much the price of goods has increased on the markets from the last year, and the capital market offers opportunities to invest in any company.
Economics plays a role in our daily life and learning about economics enables us to understand the past, future, and current models, and apply them to societies, government, businesses and individuals.
As making money is a priority to everyone nowadays the question remains. Does one need to know about economics in order to make money?
Robert Sexton in his book, the introduction to Exploring Economics (5th ed., 2008) explains that economists have the secrets to make money but most of them are not rich, he questions why the goal of studying economics is to become wealthy but then economists become disappointed.
“If becoming wealthy is your goal in studying economics, you may be disappointed. Although most economists make a good living, few have become rich from their knowledge of economics," he argues.
Sexton clarifies that understanding economics only helps the economists to make good enough decisions that its results won't make poorer.
"In fact, if economists had some secrets for making money they are in a good place to make more money, for example, the knowledge on operations of the stock markets is enough to place a business person into a position where he or she has a clear picture of how the investor can acquire money from the public," Sexton adds.
At the moment of economic hardships caused by the Covid-19 times, the ones who understand economics are in a good position to become wealthier because they know what it takes to be creative in a recession period as in the case of Jeff Bezos the CEO of Amazon.