THERE are subjects in college that we only begin to appreciate much later in life. Economics, for me, was one of them.
Like many students during my college years, I did not pay much attention to the subject. I remember sitting in the class of our Economics professor Danny Maandig, and listening to him discussing about the factors of production—land, labor, capital, and entrepreneurship—and how these elements combine to produce goods and services in an economy.
He then introduced to us ideas about markets and production, and later, the law of supply and demand, which explains how prices are determined by the interaction between producers and consumers. Our professor explained that when supply becomes scarce and demand remains strong, prices rise; and when supply is abundant and demand weakens, prices tend to fall.
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At that time, these principles seemed abstract to me. They were accompanied by graphs, equilibrium curves, and theoretical discussions that appeared far removed from the concerns of everyday life.
Of course, this observation reflects only my own experience and perhaps that of some students outside the field. Those who majored in Economics or developed a deeper academic interest in it likely approached the subject with far greater seriousness and intellectual engagement than many of us did. Perhaps, for them, these concepts were not merely classroom exercises but the foundations of a discipline devoted to understanding how economies function.
We were also taught about the evolution of economic thought. The writings of Adam Smith, often called the father of modern economics, introduced us to the idea that markets, when left relatively free, could organize economic activity through what he famously described as the “invisible hand.” Later, we studied the ideas of John Maynard Keynes, who argued that markets sometimes fail to correct themselves and that governments may need to intervene—especially during economic crises—to stabilize demand, protect employment, and sustain economic growth.
Along the way, we encountered other important concepts: opportunity cost, market equilibrium, inflation, economic growth, and the role of government in regulating markets. At the time, however, these ideas seemed to belong mainly within textbooks and lecture halls. Many of us regarded Economics as just another academic requirement to pass.
But time, experience, and exposure to the real world have a way of correcting our earlier assumptions.
As the years passed—and as I became more involved in governance, policy discussions, and public service—I began to see Economics differently. What once appeared to be abstract theory slowly revealed itself as an important framework for understanding how societies function. Economics, after all, is not merely about money or markets. It is about choices, scarcity, incentives, and the way nations allocate resources in the face of competing needs.
Today’s global events remind us how relevant economic thinking truly is. The ongoing conflict in the Middle East, for instance, is not simply a regional political crisis. It carries the potential to reshape markets and influence the global economy in ways that reach far beyond the borders of the countries directly involved.
The Middle East occupies a strategic place in the world’s energy system. A significant portion of global oil production and major shipping routes pass through the region. Whenever tensions escalate there—whether through military confrontation, disruptions in maritime routes, or instability among oil-producing nations—global markets react almost immediately. Investors, governments, and industries begin to anticipate possible interruptions in supply.
This is where the old classroom lesson about supply and demand suddenly becomes real.
If conflict threatens the supply of oil, the available quantity in global markets may decrease. When supply tightens while demand for energy remains high, prices rise. Higher oil prices then affect transportation, manufacturing, and agriculture across the world. As production and distribution become more expensive, the prices of goods and services eventually increase.
In this way, a geopolitical conflict thousands of miles away can quietly influence the cost of food in local markets, the price of transportation, and even the stability of national budgets.
Countries like the Philippines are particularly sensitive to such developments. As an energy-importing nation, the Philippines depends heavily on global fuel markets. When oil prices surge due to international tensions, the impact is quickly felt in the domestic economy—through higher electricity rates, rising transportation fares, and increased inflationary pressure. Government policymakers must then balance fiscal priorities, social protection programs, and economic stability.
This is where Economics proves indispensable. It provides the analytical tools to understand how events in one region of the world can influence the welfare of people in another. It helps policymakers anticipate risks, craft responsive policies, and guide nations through periods of global uncertainty.
Reflecting on this, I now understand that our youthful indifference toward Economics may have stemmed from a simple fact: we had not yet encountered the complexities of the real world. Many of the great issues of our time—poverty, development, inflation, public spending, global trade, and even armed conflict—carry deep economic dimensions.
To study Economics is therefore to study the hidden architecture of society. It allows us to see the unseen mechanisms through which decisions, resources, and incentives shape the lives of communities and nations.
Perhaps this is one of the quiet lessons of maturity: the subjects we once overlooked in school eventually become indispensable for interpreting the world. In an era marked by geopolitical tensions, fragile supply chains, and global economic uncertainty, the language of Economics becomes not merely academic knowledge but an essential tool for understanding the times in which we live.
And in the coming months, I am sure that—forgive me to say this—the Philippine economy will be PBBM! Pa BaBa pa More!
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Email me at rgmoldez@gmail.com
