Knowing the definition of economics doesn't mean anything as far as having a good understanding of how the economy works. In capitalism, the economy works because its rules coincide with the rules of human nature. Therefore, when anything interferes with these laws business growth will be squelched and the economy is stifled. This article explains.

We are not being taught economics too well in the US anymore. Some basic economic knowledge is necessary just to be able to implement a home budget. Beyond that, having a good understanding of basic economics helps one determine when politicians are shooting straight or when they are trying to pull the wool over your eyes.