Forword :
My own interests
in Economics started from my study of philosophy and politics. I found
out that Economics is the great combination of the two great humanistic
disciplines. As my grand father tells me, Economics is the art and science
of managing resources. Therefore, it is the most challenging subject because
Economics is the study of macrocosmic links among resources. Economics
is a study in the wholeness of resources. In this, I’m truly interested
to find out the holistic, ecological ways of resource management. My grand
father has also repeatedly told me that economics does not just determine
the profession of a person but it shapes his thinking by synthesizing central
humanistic concepts. He says Economists is fundamental to modern thinking.
I agree with him because most of the great leaders and thinkers have had
a solid background in the fundamentals of economics. Look at Plato, Karl
Marx, Pridi Bonomyong or even George Soros.
I am in the United
States attending high school while writing this essay, I can see that the
most influential person in this country is not President Clinton but Allan
Greenspan, Chairman of of the Federal Reserves. I decided in 1996 that
I want to study Economics when I chose to study Art-Math section in my
high school because I could see that the knowledge of History and Humanities
would help me better than Physics or Chemistry because it would help me
understand human's thinking and practices, which are main factors in Economical
events. As I was watching the Asian Economics Crisis, I could see that
Psychology become a great factor in economical events, it is very fascinating
to me to explore the relation of Economics and Psychology. I also studied
Calculus because it is fundamental to the understanding of Economics.
I would like to encourage
you on your study of economics to find out which direction the future Economists
of Thailand should go, how the future economists can contribute to lead
Thailand to the right path by providing a holistic, ecological management
of resources not just blind, short-term business/ corporation/industrial/finance
oriented approach which led us to the Great Economic Crash of 1997!
1. Definition of Economics
One
of the earliest and most famous definitions of economics was that of Thomas
Carlyle who in the early 19th century termed it the "dismal science." What
Carlyle had noticed was the anti-utopian implications of economics. Many
utopians, people who believe that a society of abundance without conflict
is possible, believe that good results come from good motives and good
motives lead to good results. Economists have always disputed this, and
it was the forceful statement of this disagreement by early economists
such as Thomas Malthus and David Ricardo which Carlyle reacted to.
Another early definition,
one which is perhaps more useful, is that of English economist W. Stanley
Jevons who, in the late 19th century, wrote that economics was "the mechanics
of utility and self interest." One can think of economics as the social
science which explores the results of people acting on the basis of self-interest.
There is more to man than self-interest, and the other social sciences--such
as psychology, sociology, anthropology, and political science--attempt
to tell us about those other dimensions of man. As you read further into
these pages, you will see that the assumption of self-interest, that a
person tries to do the best for himself with what he has, underlies virtually
all of economic theory.
At the turn of the century,
Alfred Marshall's Principles of Economics was the most influential textbook
in economics. Marshall defined economics as:
"a study of mankind in
the ordinary business of life; it examines that part of individual and
social action which is most closely connected with the attainment and with
the use of the material requisites of wellbeing. Thus it is on one side
a study of wealth; and on the other, and more important side, a part of
the study of man."
I think I favor (like)
this last definition
"Economics is the social science which examines how people choose to use limited or scarce resources in attempting to satisfy their unlimited wants."
From all verses referred above, we could conclude that Economics is “Economics is the art and science of managing resources.” This include all things and connection that concerned (link) to the resources. Those are human, natural resource, ideas etc…
Please note that since economics concerned “all resource” therefore, all ideas which occurred in humanity are all important. Let’s use the method of logical questioning. What’s cause us to mange all resource?” Answer “To make the best use of our resource which is limited to our unlimited needs.” “ Why do we have “needs” ?” Answer “To live”, So you could see that economics concerned the very basics of human life. Now, after the development of human across the bound of instinct, we learn to manage things in different ways, so the important part of understand economics is to understand how people managed or behave in different ways. Now, what is the science of behavior ? It’s of Psychology. Then, what is the science behind the idea of manage or to think? It’s of Philosophy. Therefore, to understand the very core of economics is to understand both Psychology and Philosophy, which, many of economics in present day do not really care about. As they think that economical events such as of the stock market behavior in Thailand before the crash represent the true situation of economics in Thailand. They all forgot the very basic idea of humanity, or the concept that human’s mind determine the events. In short, they forgot the psychological factors. And forgot the true nature of the real situation and unique aspect of Thai economics. Which lead to the crash, as proved by Soros’s idea of Reflexivity in his book “The Alchemy of Finance”.
Let’s assume with the good will that economics has the goal that is the better society. Now, it’s a good time to go into the general aspects of economical ideas along our history which has a great connection with politics.