The economy has evolved over the past years and its face changed so much. It still keeps on changing with new developments every time. Education has been a major contributor to the changing nature of the economics in the current world. In all senses, education is the major contributor to the development of the world. No single country or society that is able to achieve economic prosperity without the investment in education. Education is responsible for the production of qualified human labor which has played the major role in the economic change being witnessed in the world.
As reported by Caroline (1999), education plays the role of enriching the peoples understanding which makes them more likely to come up with new innovations in the world of economics. With education, the quality of life is improved making people live a different lifestyle. Education enables the people to understand the best ways of living with which they can be able to lead a far much better life than they would have led without the education. There is a marked difference between those people who are educated and those who are not educated in terms of the lives they life. This does not matter what type of profession a person lives but generally, education improves a person's lifestyle.
With increase in professionalism, there is an increase in specialization in economics. Many people have specialized in researching of the concepts of economics. There is a great number of professions who are dedicated towards economics. This high number of people research so much about economics. The more the research carried out on a particular subject, the more the new knowledge which emerges on that subject. Thus, increased specialization in economics leads to the development of new ideas which are used in the development of new concepts in economic. There is a constant flow of new information in the economic field thus making the economist keep on studying (Caroline, 1999).
Education and research has led to the development of technology. Education has advanced technology which has in turn led to efficiency at work. Invention of machines has made work easier and thus making the cost of production low. Organizations have turned to technology so as to produce more goods and produce them at a lower cost. Education has thus contributed highly to the economy through technology. Technology which is an integral part of education has led to globalization. Globalization has changed the world to become just a small village. Multinational organizations are finding it far much easier to carry out trade in the international scene. In addition, globalization has made trade between different countries easier. Advertisement has been made easy as organization just post the services and goods they have in their websites. People who want to know what goods which are sold by the organization will just need to visit the website of the organization (Caroline, 1999).
Education has led to the increase in the awareness of the population. The society is more aware of their rights and thus they may easily object the goods which do not fit them. Education has made people more knowledgeable and able to demand their rights. The organizations cannot sell goods and services which are not of the required standards to the customers. Customers will definitely object such goods. This is as opposed to the old days where most organizations were not mindful of the customers' rights (Caroline, 1999). Before most people received education, there was less concern about the customers' demands. However, with education, the organizations are becoming more sensitive to the rights of the customers and thus improved customer satisfaction.
On the other hand, Stephen (1996) had earlier argued that education has led to increase in the number of people who are trading in a particular commodity. The increased number of people involved in a certain trade has led to increased competition. Increase in competition has made the business world change so much. There is improvement in the quality of goods and services. The business people will want to provide better services. Customers will be served better than they would have been served without competition. Education makes the people get to understand the business opportunities which are available. With improved education, more and more people are likely to understand the benefits of a certain type of business. This is as opposed to the situation where the people are not educated. In a society where people are not educated, only a few people do a certain business. The rest of the population is not aware of the existence of the business and thus making only a few people trade in that society. The society thus has no competition. Without the competition, the goods and services being sold will be of low quality and there will be no change in the state of the economy.
Improved education has led to increase in the ability of the people to buy goods and services. When the society gets educated, they are likely to get better jobs and earn a better income than when they are not educated. People who are educated are able to buy more goods and services. The ability of the people to buy certain goods and services is increased thus making the business in such a place thrive more. Education increases the buyers power to purchase goods and services making the economy grow faster. In addition, there are more customers for various goods and services which increase the amount of profits realized providing more funds for research into better ways of doing business. Education also helps people get capital for which they can start businesses with (Caroline, 1999).
Education has led to such things as internet which has made communication easier than it would have been without the internet (Lauwerys, 2008). Internet has eased communication and made it very fast. The cost has also reduced with the organization incurring almost no expenditure in communication. Since communication is one of the most important factors in business and economics, its improvement leads to better ways of doing business and encouraging economic growth in the world. Business has changed from the physical way of doing it to the digital way where the business man can buy and sell goods online without meeting the customer. The customer can also order for goods online and make the payments online without them meeting. This has made it easy for the operations of the organizations.
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Stephen (1996) held that, before globalization which has been brought about by education, it was very hard to do business in two different countries. Lauwerys, (2008) added to that by stating that doing business on the international scene was one of the most difficult things in business. However, education has led to globalization which in turn has made international business easier than it was. One can sell goods and services in two different countries and be the same as selling in one's own country. In addition, it makes things like transport and communication very easy making business easier.
With education, there are more professionals in the economic field (Lauwerys, 2008). All these professionals have a lot of new ideas. The professionals are able to think and bring about better ways of operations and thus making the process of doing business easier. Without the new professionals created by education, the same principles of economics are used and there are no new things. This would limit the extent of growth of the economy making it static. Better ideas are brought everyday to the field of economics because of education (Lauwerys, 2008).
There is a change in demand of particular goods with education. When the society gets educated, they begin to appreciate certain goods than they were appreciating them in the past (Lauwerys, 2008). They begin understanding why some goods are better than others. This changes the pattern of business with goods which are not fit for the people being ignored and an increase in the sales of goods which seem to be fit for the people. For example, when people get educated, they understand the benefits and detrimental effects of certain goods. As a result, they shy away from the goods with many detrimental effects but buy more of goods which are good.
Education has done away with the ignorance which is present in the society. people in the society are more informed and they carryout activities because of a particular reason but not because they just saw someone do such a thing. There is more planning and this reduces the misuse of money. The society can use money for the projects which are necessary and leave those projects which do not add value to them. As a result, it is more likely to develop (Stephen 1996).
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In conclusion, education is the major contributor to economic change. Education increases efficiency in most things as the people are well trained to carry out particular responsibilities. There are more machines which make work easier and reduce the cost of production. This in turn increases the amount of profit which an individual gets. Internet which is as a result of research and education has made communication very easy thus making the process of doing business very easy. When people get educated, they change their lifestyles. The cost of living increases and the type of goods which they need changes. This changes the pattern of business.