THE POWER OF ECONOMICS AND ECONOMISTS

More than half a century ago John Maynard Keynes, one of the most influential economists of the twentieth century, said:

“The idea of economists and political philosophers, both when are right and when they are wrong, are more powerful than is commonly understood. Indeed the world is ruled by nothing else. Practical men, who believe themselves to be quite free from any intellectual influences, are the slaves of some defunct economist”.

Most of the ideologies of the modern world have been shaped by prominent economists of the past – Adam Smith, David Ricardo, John Stuart Mill, Karl Marx, John Maynard Keynes, and many others.

And current world leader routinely solicit the advice and policy suggestions of today’s economists. For example, the President of the United States benefits from the recommendations of his Council of Economic Advisers. The broad range of economic issues facing US political leaders is suggested by the contests of the annual Economic Report of the President. Areas covered typically include unemployment, inflation, economic growth, taxation, poverty, international trade, health care, pollution, discrimination, immigration, and education, among others.

In spite of many practical benefits, economics is mainly an academic, not a vocational, subject. Unlike accounting, advertising, and marketing, economics is not primarily a how-to-make-money area of study. Knowledge of economics will help you run a business or manage your personal finance. But that is not its primary objective. Instead, economics ultimately examines problems and decisions from the social, rather than the personal, point of view. The production, exchange, and consumption of goods and services are discussed from the viewpoint of society’s best interest, not strictly from the standpoint of one’s own pocketbook.

Vocabulary

Vocabulary exercises

1.Which of the following statements are true/false according to the text? Correct the false sentences:

2. Fill in the gaps with the words and expressions from the text:

1. The world is _____ by nothing else.

2. Most of the ideologies of the _____ world have been shaped by prominent economists of the past.

3. Areas covered typically _____ unemployment, inflation, economic growth, taxation, poverty, international trade, health care, pollution, discrimination, immigration, and education, among others.

4. Current world leader routinely solicit the _____ and policy _____ of today’s economists.

5. The President of the United States benefits from the _____ of his Council of Economic _____.

6. The _____ Economic Report of the President _____ such areas as typically unemployment, inflation, economic growth, taxation, poverty, international trade, health care, pollution, discrimination, immigration, and education, among others. 7. Knowledge of economics will help you _____ a business or _____ your personal finance.

8. But that is not its primary _____.

9. Economics ultimately _____ problems and decisions from the social, rather than the personal, point of _____.

10. The production, exchange, and _____ of goods and services are discussed from the viewpoint of society’s best interest.

3.Find in the text English equivalents for the following:

4.Translate into Russian:

5.Fill in the gaps with the proper words and phrases: