Why did I change from Economics to Accounting?

Hello,

after the Bachelor in Economics I decided to leave Heidelberg to study Management Accounting in Aarhus. I just read an article, which reminds me again, why I did this. Because economics as an academic discipline is a complete mess. I remember all these useless lectures with pure math, endless derivatives, highly theoretical and unrealistic models and profs. talking about indifference curves, market efficiency and ever-increasing endless growth. They completely live in their own illusory world and they forget that real world is so much different.

The article I refer to describes that the inequality will rise even further to complete insane levels by 2030. https://www.theguardian.com/business/2018/apr/07/global-inequality-tipping-point-2030

That was never a topic in my lectures. My Profs from Heidelberg would say, that injustice is highly subjective and therefore cannot be measured, so it`s not a problem of economics. Economists only care about efficiency. That`s perfect for them, so they don`t need to think about more difficult non-mathematical stuff. The math often looked intimidating, but at the end of the day it was just math, and those formulas simplified human decisions by an absolute. Every model we had to learn was mathematical, every single one. Do they really believe that humans are robots making decisions based on a few assumptions? These neo-classical models took over the complete curriculum.

This article is a pathetic display for the complete economic academic discipline. They don`t have any solutions or don`t even consider the top 1% owning 2/3 of the world`s wealth a problem. Maybe that is still efficient. Inequality was never part of any model.

And that their weird models are actually wrong we could recently proof very nicely in Germany. I had to learn that a fixed minimum wage will kill jobs. That was a very easy model, because if you pay someone more than the market is willing to pay for that service or product, that job dies. The productivity of that person is just lower than the minimum wage. But Germany still implemented the minimum wage law, and nothing happened. Maybe the Germans just don’t decide mathematical correct and efficient? Maybe the models are right and the people are wrong? Shouldn`t I stop going to the hair cutter, because the hair cut was getting 2 euros more expensive? Do I waste my money?

The worst thing in studying economics for me is, that after 4 years I don`t feel that I understand anything better than before those years. These models cannot describe the reality, but to include non-mathematical ideas into their models was always out of the question. For Economics you only need Math. Actually the best students have been those who studied Math as a major. For them Micro- and Macroeconomics was a joke.

Today, I think the biggest problem human kind has in regards to injustice and wealth distribution, is the automatic inheritance of wealth and power. The heirs of BMW for example receive dividends of 1 billion EUR every year, that 1 million EUR every 8 hours without doing anything. With this money they can buy power so that the system exactly stays as it is now. I never understood the discussion about management salaries even when those managers earn millions a year. They at least work, and they have contracts. Every one can try to become a CEO, but to live up in a rich family is pure luck. Heirs don`t do anything, and they just receive millions over millions. They can live lives without any limitations. They can manipulate markets with their wealth power, they can buy politics and media, they can never get poor and they don`t have any risks. Instead of examining this problem, economists just babble about that we need more growth.

If this heredity problem is not recognized by society and from the scientific community, the prediction of the article will become true and it will not serve human kind, that is for sure.

Frederik

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