Economics Degree - Useless & Impractical?

The intro classes are a waste of time, but are necessary to build upon for the upper level courses. Depending on which upper level courses you take, they can be beneficial. I would suggest taking international macro classes. Micro is boring and very narrow in scope. At least with macro you get to look at more big picture things that somewhat come into play in the financial markets.

i once heard an econ snob describe finance as "just watered down economics"

Economics teaches you to think analytically, and is especially interesting in some upper level courses (as mentioned above). Finance seems to be more focused on the nuts and bolts of what you'll be doing in a finance career, but a lot of that can be learned anyways when you start work.

My undergrad offered an Eco/Fi major. Kind of the best of both worlds.

The problem with economics is that nearly everything is theoretical and comes with so many assumptions that it isn't realistic. Then economists make real-life decisions based on these models that have unrealistic assumptions. Good thinking.

Macroeconomics is useful for reading articles and understanding the big picture.

Micro is useless, but you really learn to think analytically in the class.

I agree with Asiamoney, all or most of the stuff you learn in finance class can be learned when you start working. Economics focuses more on the decision making and the choices that companies face in the market place.

Full disclosure I am an Econ major

the only fun thing is macro econ and econometrics

One word: econometrics. You will learn to dissect data like no other.

econ is one of the top 10 earning degrees

Engineering, Accounting, Finance, Econ, and Compsci are probably the highest avg starting salary degrees out of undergrad. Majors like Physics/Biology/Math etc. often need graduate school to get the best jobs in those fields (this applies to econ as well if one is going the govt/academic/research route).

first day at a berkeley econometrics course taught by ex counsultant: "econometrics is like black voodoo magic... "

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financen00b:

People often say that studying economics is excellent preparation for a career in finance and the business world in general. Is this really true?

I've taken introductory courses in micro and macro, and they are nowhere near as useful or relevant as my finance and accounting courses. Maybe I need to take some higher level courses, but I fail to see how economic theory (utility maximization, demand/supply, labor markets, etc) is relevant to the world of finance.

Econ teaches you to think both quantitatively (economic maths are much more advanced than undergrad finance maths)and qualitatively, and it's the capstone of sociological studies.

Undergraduate business school is basically a trade school where you learn how to do things but you don't learn how to think. I had a great advanced economics professor who told us (I went to an undergraduat business school btw) business students that anyone can learn how to balance a balance sheet- credits and debits? big f'king deal- it's in economics where you can really tell who's got intellectual horsepower.

the irony is that at most schools with business programs, many of the brightest business-oriented students go into the business program b/c that's where recruiters target, leaving the economics program full of lazy frat-guys.

if you want to do investment banking, you don't need to know accounting/finance before showing up to work on your first day- you just need a discplined mind that knows how to think.

please notice that I am talking about "undergraduate" finance course. Finance at a masters level (masters, not MBA) is much more rigorous, involves heavy maths, and does in fact teach you to think- basically it's economics applied to financial markets.

in short, studying an academic discipline that teaches you to think is one of the most useful and practical things you can ever do for yourself.

financen00b:

People often say that studying economics is excellent preparation for a career in finance and the business world in general. Is this really true?

I've taken introductory courses in micro and macro, and they are nowhere near as useful or relevant as my finance and accounting courses. Maybe I need to take some higher level courses, but I fail to see how economic theory (utility maximization, demand/supply, labor markets, etc) is relevant to the world of finance.

Econ teaches you to think both quantitatively (economic maths are much more advanced than undergrad finance maths)and qualitatively, and it's the capstone of sociological studies.

Undergraduate business school is basically a trade school where you learn how to do things but you don't learn how to think. I had a great advanced economics professor who told us (I went to an undergraduat business school btw) business students that anyone can learn how to balance a balance sheet- credits and debits? big f'king deal- it's in economics where you can really tell who's got intellectual horsepower.

the irony is that at most schools with business programs, many of the brightest business-oriented students go into the business program b/c that's where recruiters target, leaving the economics program full of lazy frat-guys.

if you want to do investment banking, you don't need to know accounting/finance before showing up to work on your first day- you just need a discplined mind that knows how to think.

please notice that I am talking about "undergraduate" finance course. Finance at a masters level (masters, not MBA) is much more rigorous, involves heavy maths, and does in fact teach you to think- basically it's economics applied to financial markets.

in short, studying an academic discipline that teaches you to think is one of the most useful and practical things you can ever do for yourself.

Am I the only one who preferred Micro.?

Guys, we have to make a distinction between European and US system/curriculum. As far as I have seen in Europe (where I live), having a pure Econ degree is not likely to increase your chances in getting into IBanking. In fact I believe if you have decent quantitative skills it would be more likely to move in trading, hedge funds etc. Otherwise you might a have a slightly more uphill battle to fight.

BTW In my BSc in Accounting & Finance we had mandatory: Statistics I, II, Mathematical Calculus and Econometrics (for Finance orienation) and Advanced Econometrics, but optional. Plus, we applied some of these in other courses like Risk Management. International Finance was also a mandatory course (loved it). In short, yes you do learn a load of econometrics and statistics in Accounting Finance degrees in Europe (not a privilege for Econ classes only).

dude, econometrics. especially financial econometrics. nothing like it.

To the guys having bitch fights over how much a degree is worth: http://economix.blogs.nytimes.com/2012/01/18/what-the-top-1-of-earners-…

Economics is only below biology for top 1%ers. That said, the average engineering student will make more than the average econ student.

Now, getting on to things that actually matter. No, econ is not useless. In fact, I find it to be pretty interesting. But, it is a risk if you do it at a non-top school. An econ major from a target/semi-target generally gets the same benefit as they would a finance degree with the right internships and what not. But, what I do see, is that when you start recruiting at state schools and what not you see that companies would much rather see accounting/finance. Now, investment banks still won't care, but that F1000 that you are interviewing for (which is the best a lot of these kids can hope for) would much rather see a practical skill with accounting/finance.

Why's everyone praising econometrics?

Because it's the only applied economics course in university.

[quote=bears1208]To the guys having bitch fights over how much a degree is worth: http://economix.blogs.nytimes.com/2012/01/18/what-the-top-1-of-earners-…] For all the shit "Finance" majors get, they make up nearly 3% of all the 1%ers and 5% of all Finance majors make it to the 1%.