One subject has always baffled me. It is one of the most important tools for understanding your day-to-day life, I am told so, but in my case it is just the reverse. Whenever I felt I have understood it, the nature throws up such a weird question, that I am left with no option except admitting either that there is something wrong with it or me.

Let me try to make you understand my condition.

While going through a book about history of metals and non-metals, I encountered a fact that any use (scientific or physical ) of gold was only found in late 19th or early 20th century, when gold was used in deflecting electrons for some scientific experiments ( I don’t remember it properly as it is not the bone of contention). Do you find something really wrong with our ancestors after reading this fact? No? Give it another thought.
Most of the wars after discovery of gold have taken place for it. Millions and billions of people have sacrificed their lives for the whim of the kings about the glittery-metal, which has no use. It is too soft to be used in weapons; mirror is more shining and reflecting than it; it can not be eaten; it is no way demanded by the body; it is not comfortable to be used as an ornament or throne. My list exhausts here, if you have some other answer pleaseee do tell me, I would be eternally grateful.
Another perplexing point is that how come every king got a fancy for metal. Come on, at least some body must had the guts to question himself. Maybe yes, but being a ’social animal’ he had to follow the customs and traditions of the society and get his subject, or even himself, killed for this caprice of our ancestors.

Don’t you fool yourself with the notion that 20th century man has learnt from past. Still gold is one of the precious commodities, which can get you real money from society, who use a fraction of it in scientific experiments, dentistry and electronics.
How does all of this is related with economics? Hey still people spend a fortune on this material, and its price many times even effect the world economy. Gold forms the basis for a monetary standard used by the International Monetary Fund (IMF) and the Bank for International Settlements (BIS).
But problem does not stop here. The parallel point (economy!) to all of this is that many people are making a living out of all this. Just imagine the industry, scientist, miners, truck drivers, transporters, goldsmith, security personnel, even thief and robbers and families of these people and industry thriving through them. Felt that something is wrong?

Something similar is the lesson which World War II has for us. Before reading further do ponder over it.

In 1929, the whole world felt a jolt. And the recovery from that jolt was only with the help of World War II which demanded more than 40 million sacrifices. Don’t you find another mistake with this fact? Destroying things, but making it seem as inevitable, can not only move the economy but can also help you in recovering from depression big enough like 1929 one.
Okay, you find it implausible. Let me give you some more examples. Think about the seven wonders of the world. Go through the history of those civilizations that build them and about the time it was build. Again, I request you to find some practical, how disturbing this word is, of those great wonders. Take your time, we are in no hurry.

At least I have found none. But that’s not the point. If you have gone through the their history, which you haven’t, you will find that building those ‘marvels’ didn’t effect their economy much, except in some case that their enemy used that time in building some better weapon of destruction.

One of the most influential economists of the 20th century, John Maynard Keynes, once said that if economy is doldrums than government should pay people to dig a hole, and once is completed pay them again to fill it. That would move the economy!

Still can’t see the problem? Try to put yourself in the mind of a teetotaler and non-smoker. Then the first thing you will notice that a thing which is not necessary, on the other hand is harmful, moves a whole industry with it, in which millions of people are involved in one way or the other. Just think only of the advertisement or media industry, you can grasp the situation.

One last example: We all are aware about Enron fraud which effected whole economy. Enron had been defrauding its investors for a good amount of time, but nobody had any problem! The second the revelation of the ‘truth’ happened the whole economy felt a shock. It took another some years for recovery. But why hadn’t economy suffered from the second Enron lied; why only after people realized that there is lie.

I hope I have tried enough to present my state of mind. But now it’s time for you. You have full freedom to classify me as rightist, Keynesian, leftist, post-modernist, post-structuralist, post-colonialist, what-ist, and whatnot-ist; but do answer my problems.

Because economics is one subject which has always baffled me, and I have been told that it is one of the most important tools for understanding your day-to-day life.