Nature of Economics

Economics is classified as a social science because it deals with the study of man's life and how he lives with other men. Obviously, economics is interdependent with other sciences like sociology, political science, history, geography and physics. In fact, it is even affected by religion. For example, a jobless man is likely to create a social crime like stealing. The policies of the government influence economic activities. The geography of a region determines the main sources of incomes of the people, like fishing or farming. The solution of economic problems or economic planning may rely on past events or historical developments. In the case of physics, it produces machines and electricity. These are very useful in the production of goods and services. Likewise, religion is related to economics. Religious traditions and beliefs can discourage or encourage economic development. Some tribes in Africa feed wild crocodiles with pigs or chickens in the hope of increasing their farm harvest. The crocodiles are one of their gods.

Considering the nature of economics, it is not advisable to solve an economic problem with economic solution alone. This will not solve the problem. Our economic problems are not purely economic in nature. These are also caused by noneconomic factors which maybe cultural, educational, social, or political. Therefore, to minimize or completely solve an economic problem, we need not only economic solutions but also political, social, and cultural reforms. For example, a poor farmer has several bad habits like heavy drinking and gambling. He remains very poor because he is just a tenant, and he spends his little income mostly on his vices. Giving the poor farmer a land of his own does not automatically improve his economic condition. If he does not know how to use properly his income, and the middleman gets most of the fruits of production of the farmer, then the economic problem of the farmer has not been solved.