David French | 19/02/2010 9:57:54 AM

This article was first published in [The Morning Bulletin] dated 7 November 2009.

Economics is not an easy discipline, and because it strikes at the heart of society’s welfare, practicing it doesn’t always make you popular. For school leavers who want to combine sound math and English skills with analysis of complex yet structured ideas, it can be however, incredibly rewarding. I did my degree after completing a trade. It was a big step when school was a distraction from fishing round our creeks, bays and islands.

A good degree takes you through the history of economic thought, without which, in my view, it is difficult to come to grips with our society. It gives you the tools to cut through the ubiquitous noise. I remember one lecturer saying “a lot of people know more economics than me; the difference is, some of what I know is right!”

My career has covered transport economics, regulation and policy, stock market analysis and for the past 9 years, investment/financial planning. Other alternatives include government, universities, investment banks, the IMF/World bank, health, development aid programs and journalism.

Like many “traditional” disciplines, the popularity of economics has waned. Finance and accounting have become more popular, perhaps because they target the application rather than the foundations of commerce. If the underlying economics had been better understood, some of the problems of the GFC might have been avoided.

Aside from my work, which is heavily focused on asset valuation and management, some of the questions that I like to toy with include:

• Two income families certainly increased household income, but was that benefit lost to inflation as more dollars chased a limited supply of goods?
• Why do productivity initiatives, which are beneficial to welfare, encounter such resistance?
• Where supply is fixed, consumer subsidies (like the first home owners grant) simply push prices up. Why does society allow such pointless yet expensive policy measures?
• Can Government manage the politics of winding back the stimulus package, preventing inflation and restraining interest rate increases?

Over the last 30 years, policy changes including superannuation, the deregulation of banking, labour force changes and the floating of the $A, have exposed all of us to markets. Government policy needs to be adjusted so that everyone picks up some proper economics, finance and accounting at school. School leavers who want to make a difference should get into it boots and all.

The Investment Collective (AFSL 471728) is a non-aligned financial planning and investment firm specialising in providing tailored financial and investment advice for individuals and small business. Capricorn Investment Partners Limited's services include financial planning, share trading, portfolio management, insurance broking and self managed super fund administration. Additional information on services provided by The Investment Collective Limited can be found by following this link. Readers are reminded that this document has been prepared for general information purposes only, and any advice contained herein has been prepared without taking into account your financial objectives, situation or needs. Readers are advised to see their financial advisor prior to acting on any general advice.

More articles about financial planning, money, economics, accounting.