MY TEACHING PHILOSOPHY

            In my opinion, the subject of economics is important and useful.  Knowledge of economics allows a person to make better personal decisions and act as a more informed citizen.  In spite of the obvious benefits of learning economics economic illiteracy is widespread.  It is part of my life’s work to do what I can do to reduce economic illiteracy.  I sometimes joke with my fellow economists that there is so much to do and so little time.  How does one accomplish this goal of reducing economic illiteracy?  That is something I have been struggling with for more than 30 years.  I have experimented with many techniques – some successful many not.  Over the years I have developed some beliefs of what works for me and what doesn’t.  The result is my philosophy of teaching.

                I think Keynes said it best.  According to Keynes: 

“The theory of economics does not furnish a body of settled conclusions immediately applicable to policy.  It is a method rather than a doctrine, an apparatus of the mind, a technique of thinking which helps its possessor to draw correct conclusions.”  

                 In other words, teaching economics is just not teaching a set of facts and definitions.  Rather it is fundamentally different in that it involves the teaching a way of thinking about problems.  In economics we talk about the “economic way of thinking.”  Essentially the “economic way of thinking” recognizes that we live in a world of scarcity.  We cannot satisfy all of wants simultaneously and therefore face tradeoffs which require us to make choices.  Choices involve opportunity costs.  In a market economy, the intensities of our wants are reflected by demand and opportunity costs by supply which together determine prices.  Prices provide information and incentives that guide buyers and sellers to the allocation of resources.  How this works is the study of economics. 

These are simple but powerful principles.  But just reciting these principles over and over again in a mindless chant does not mean that they are learned.  Based on my experience, the best way to teach economics is application.  That is, state the principle and work through its implications as an abstract model.  The next step and most important step is application.  That is, apply the model in a real-world situation.  This is a key step in the learning process.  It is here that the student begins to see how thinking by the application of models allows one to draw useful conclusions.  The next step is to apply the model in another real-world situation.  The point of all this is that teaching economics requires exposition of theories but it does not stop there.  These theories must be applied over and over again until the student sees the general applicability of these principles in understanding a wide range of phenomena.   Making seemingly esoteric principles practical and useful to the student is the goal.  It is gratifying to hear students begin to use terms like tradeoffs, opportunity costs, incentives, etc. and see their little smile as they use the words telling you that yes I understand.

Whether this approach is taught in a lecture format or a more intimate question and answer situation with a few people depends on the circumstances.  Both can work as a teaching technique.  The key is to get the student actively involved in the process.  That is, continually asking the students to help you explore the problem step-by-step.  Let’s work together on this problem is what I tell them.  Once again, this depends on the skills of the professor and the interaction between the professor and the student.  I always like to start the class with a little summary of what we are going to do that day and what principles we are going to learn.  I then try to end the class with a restatement and summary of the principles we have learned that day.  This reinforcement is very helpful.  Also as we proceed through the course we find that we are reusing earlier-learned principles over and over again.  I try to point this out. 

In final summary, the reason why I like economics is because it is useful in understanding a wide range of phenomena.  It is practical and gives you a framework by which the world makes more sense.  I try to convey this same appreciation and understanding to my students.