In late February, U.S. high school students participated in the Economics Olympiad, aiming to represent the U.S. in Olympia, Greece. This competition highlights a significant gap as many American students lack formal economics education, underscoring its recent relegation in favour of STEM disciplines.
The National Assessment of Educational Progress reported in 2012 that 58% of tested 12th graders were not proficient in economics, yet many of them voted in the subsequent presidential election, which was largely influenced by economic issues. Alarmingly, only 27 states, along with D.C., require economics courses for graduation, often treating it merely through a personal finance lens instead of a broader economic perspective.
Such an education gap may lead to poorly informed policymaking, focusing more on immediate benefits than understanding the essential costs of decisions. All choices—from individual to public—carry unseen consequences that, over time, can unfurl into larger economic ramifications.
Recent reports reveal staggering household debt in the U.S., driven by choices made over time. As of September, household debt, excluding mortgages, exceeded $4.96 trillion, with credit card balances climbing to $1.17 trillion. The federal debt sits over $36 trillion, illustrating the complexity and interdependence of economic decisions.
Government spending choices, such as California’s monumental high-speed rail budget, further accentuate the need for economic literacy among policymakers. Their decisions often showcase a disconnection from the tangible impacts of financial decisions, leading to significant budget shortfalls.
Economics is not just another subject; it is foundational for understanding the world, yet it is not prioritised alongside STEM education. A lack of economic knowledge among students stifles their ability to make informed decisions in adulthood. Thus, while STEM fields are crucial, economics should be equally essential in shaping knowledgeable future citizens.
The Economics Olympiad showcases the lack of economics education among U.S. high school students, many of whom are unprepared for important economic discussions. Only a fraction of states require economics courses, which often focus too narrowly on personal finance. As household and federal debts soar, the need for economic literacy among both citizens and policymakers becomes increasingly crucial to ensure informed decision-making and effective governance.
The diminishing emphasis on economics education in U.S. schools not only hampers individual understanding but also adversely affects policymaking. A comprehensive grasp of economics is vital for informed decision-making, emphasising that economic principles are critical for student empowerment and societal growth. Elevating economics to a core subject ensures that future generations are equipped to navigate and influence the economy wisely, highlighting the notion that economics is indeed destiny.
Original Source: www.twincities.com
