What Happens When College Students Learn Economics?
Michael Lewis published "The Big Short: Inside the Doomsday Machine" in 2010, which described the players who predicted the financial crisis of 2007-08. If the non-fiction book wasn't comprehensible enough, then Adam McKay did a good job of simplifying it in his big-screen adaptation. Brad Pitt, whose character was based on Ben Hockett, was a co-producer. The actor might be a regular reader of the Financial Times. He may have been interested in economics after Bernie Madoff pleaded guilty to eleven felony charges in 2009. (Madoff's victims included big names in Hollywood.) This biographical comedy revealed something else. What would happen to the ordinary people if they learn economics?
The question was answered not long ago when a group of professional met in a converted church in the middle of the road that ran from Manchester from Stockport. They've been working most of their lives, far away from the business center in London. They bore the brunt of budget cuts, saw their neighbors sunk into debt, and tried too hard to have decent accounts. They didn't learn the laws governing the free market. It was a lesson in survival instead.
College students face similar issues as well. They may have grasped the gist of John Maynard Keynes's words (or Karl Marx's), but all would be lost when they deal with their limited budget (or whatever left from their allowance). It should be back to the drawing board: Are those economics lessons relevant in this day of age? Yes. It must be a matter of moving around, which should give them another view of the subject matter. It still comes down to the basics.
Economic Wisdom That College Students Must Learn
Everything you see around comes from Mother Nature. There must be a college somewhere that offers a course in Ecolo-mics. You might be clueless about it, if not uninterested about it. The signs are everywhere: A trash bin filled with items that are recently purchased online (or from the stores), if not slightly-used things; disposable stuff; and throw-away food. This throw-away culture is a sign of privilege, which should be an eye opener. Recycling should be a good start, as action speaks louder than words. You might not influence other students (in your dorm), but you could win some admirers. There should be a rub off somewhere.
You have a control over the economy. It's hard to live a frugal existence after you notice your better-off coursemates. Keep in mind that this is a temporary phase. If you strive harder, then you would succeed sooner or later.
Information is power. It would be better if you should be updated with the latest conflicting developments in North America, but choose the practical approach to it. The demands of the coursework may prevent you to do an extensive research in investment, but you can start with saving your money. No amount is too small if you really want it. Don't ever think of spending it on a night out with your friends (after passing your examinations and beating the deadlines to your essays). Think about unforeseen expenses. The next item is related to this one.
Money doesn't buy happiness. Or does it? The life of Barbara Hutton, an heiress who died almost penniless, could be a good illustration. Her insecurities led her to compulsive generosity and spendthrift lifestyle. The "Poor Little Rich Girl" was unlucky to find someone who didn't exploit her, and she might be too late (or very old) to use her common sense. The virtue of a simple living may not appeal to most teenagers, as they could be influenced by trends. It may be too hard to make it a New Year's resolution, but you can start with small steps. If you feel down, then call your parents. If you're too embarrassed to talk about it, then talk to your roommate (or coursemate whom you consider your best friend). It won't be wise to indulge in retail therapy, also drinking lots of beer. Eating lots of pizza also counts as well.
No economist can predict a financial crisis. The Internet, which is full of blind alleys, won't help you on this one. The case of "The Big Short" may have proved otherwise, but keep in mind that sharing is not a virtue in business. Keep an eye on your spending. You must learn delay gratification (until graduation day). Prioritize your immediate needs.
What About Student Debt?
Some students want to go to college, and availing a loan would be the only option. The thought of incurring interest may make them anxious, if not prompt them to work during weekends. If you're one of those students, then don't freak out when the situation overwhelms you.
It could take some time before you pay it off, but it doesn't make you more miserable than the other students. You should look at it as an opportunity in disguise. If you're doing well, then you might have to look for internship opportunities. This could be your first job if you excel here. You might want to consider a part-time job during the summer. You may be interested in learning a foreign language, as there can be better opportunities outside the country. In other words, face the future with optimism and a courageous heart. College does open a lot of doors for you.
