Though, as is shown in case of “peripheral Europe”, this picture can change quickly, systemic risk in the private sector can easily turn to government debt. Regarding private sector imbalances, the issue is even more complex, as we cannot identify one actor, responsible for the behavior of a whole sector.
Economics provides knowledge and skills of practical use in college and in the workplace, and it also provides skills to plan and make wise financial decisions, which are some of the most important and consequential that we face in life. Your students benefit very directly from this education, but so does everyone else in society.