How an Economy Grows and Why It Crashes [Hardcover]

Peter D. Schiff (Author), Andrew J. Schiff (Author)

Book Description

Publication Date: May 3, 2010

How an Economy Grows and Why it Crashes uses illustration, humor, and accessible storytelling to explain complex topics of economic growth and monetary systems. In it, economic expert and bestselling author of Crash Proof, Peter Schiff teams up with his brother Andrew to apply their signature "take no prisoners" logic to expose the glaring fallacies that have become so ingrained in our country?s economic conversation.

Inspired by How an Economy Grows and Why It Doesn?t?a previously published book by the Schiffs? father Irwin, a widely published economist and activist?How an Economy Grows and Why It Crashes?incorporates the spirit of the original while tackling the latest economic issues.With wit and humor, the Schiffs explain the roots of economic growth, the uses of capital, the destructive nature of consumer credit, the source of inflation, the importance of trade, savings, and risk, and many other topical principles of economics.

The tales told here may appear simple of the surface, but they will leave you with a powerful understanding of How an Economy Grows and Why it Crashes.

Editorial Reviews

Review

‘If you feel you want to get a decent grasp of free-market economics…this book is the perfect place to start.' (Daniel Hannan, Telegraph.co.uk/Blog, July 2010).

From the Back Cover

EveR WONDER . . .

• Why governments can spend without ever seeming to run out of money?
• Why some countries are rich while others are poor?
• Whether spending or saving is the best cure for a bad economy?
• Where inflation comes from?
• Why it's so hard to catch a fish with your bare hands?

How An Economy Grows And Why It Crashes

Understanding how all the pieces of an economy fit together can be a daunting task—especially when the experts can't seem to do it. But when you get down to the basics, it is much easier than you may think. How an Economy Grows and Why It Crashes uses illustrations, humor, and accessible storytelling to take economics off its lofty shelf and put it back on the kitchen table where it belongs.

This straightforward story of fish, nets, saving, and lending exposes the gaping holes that lie hidden in our global economic conversation. With wit and humor, the Schiffs explain the roots of economic growth, the importance of trade, savings, and risk, the source of inflation, the effects of interest rates and government stimulus, the destructive nature of consumer credit, and many other economic principles that are so frequently discussed and so poorly understood.

The story may appear simple on the surface but it will leave you with a powerful understanding of How an Economy Grows and Why It Crashes.

See all Editorial Reviews

Product Details

• Hardcover: 256 pages
• Publisher: Wiley; 1 edition (May 3, 2010)
• Language: English
• ISBN-10: 047052670X
• ISBN-13: 978-0470526705
• Product Dimensions: 6.5 x 0.9 x 9.4 inches
• Shipping Weight: 1 pounds (View shipping rates and policies)
• Average Customer Review: 4.7 out of 5 stars  See all reviews (238 customer reviews)
• Amazon Best Sellers Rank: #11,326 in Books (See Top 100 in Books)
  • #19 in Books > Business & Investing > Economics > Theory

Most Helpful Customer Reviews

299 of 320 people found the following review helpful

5.0 out of 5 stars Why You MUST Read this book...and Order extras for friends & family...even if you don't like Schiff April 26, 2010

By javajunki TOP 500 REVIEWER

Format:Hardcover|Amazon Verified Purchase

Peter Schiff did not start out as one of my regular "reading list" authors...in fact, he originally irritated me quite a bit. However, after listening to several interviews on Financial Sense as well as numerous traditional media channels/outlets, reading several of his books...and watching with my own eyes/ears his rather pessimistic prognostications come about...I changed my tune. As a college instructor and business writer, it's not easy to do a turn-about...on the other hand, watching what is taking place across this nation (and indeed the world) isn't "easy" either.

However, after he announced his decision to pursue politics I expected this new book to be an extended "positioning statement". Whether you like or dislike Schiff, here is why you should read this book...and buy an extra to share with someone you care about.

1. It's funny. Okay, perhaps "funny" isn't a major reason to purchase this book but there is a decidedly quirky humor underlying the writing that makes this very accessible to people that wouldn't normally enjoy reading a book about economics. Schiff does a great job keeping this accessible to every type of audience without insulting the intelligence of the reader...in fact, he takes great pains to "de-mystify" the veil of complexity that surrounds issues that should be taught to every informed citizen.

2. Irwin Schiff. The father of Peter Schiff...I've read a couple of his books out of pure curiosity. While I do not personally agree with the position taken by the senior Schiff, I was utterly shocked to learn that at age 82 he remains incarcerated. Considering the recent fiasco of financial misconduct, it speaks volumes as to the priorities of the government. This book builds upon a story...and philosophy...initiated many years ago. Agree or disagree, it takes a man of courage and strong conviction to live his beliefs. I suspect men such as this are quickly becoming an endangered species in their own right.

3. Food for thought - while fishing. This is a wonderful way to introduce kids to the basic tenets of economics, personal responsibility (gasp - for the few of you out there that still believe in such a thing) and other foundational ideas. It's one of those books that will grow with their own understanding. Adults will absolutely appreciate this allegorical tale. Those that are searching for ways to understand a tough topic will enjoy the easy to read comparisons. Those that already adhere to Schiff's point of view/philosophy will REALLY enjoy the humor. Critics will not only enjoy the ability to take pop shots and blow things out of proportion but are likely to find plenty of ammunition for future debate. No matter how you cut it...everyone wins!

In this world there have always been a select few "Cassandra's" who were destined to remain a lone voice crying in the wilderness while others remained unable or unwilling to listen. However, they play an important role in history by serving as a witness that there were choices...choices that were not taken but choices just the same. They serve as evidence that some people were aware of the problem and there were other options. Whether you agree or disagree...an earnest debate is always preferred to an ignorant mind.

126 of 135 people found the following review helpful

5.0 out of 5 stars Destroying the Keynesian Myth Once and For All April 26, 2010

By TonyD

Format:Hardcover|Amazon Verified Purchase

Other than Thomas Woods, I can think of no one else that can explain the often intimidating field of economics as clearly and simply as Peter Schiff can. Even if you are a complete idiot when it comes to understanding economics, this book will make you understand that economics is actually a very simple concept to grasp. If you are literate, you should have a great understanding of the Austrian school upon finishing this book. Complete with humorous anecdotes and illustrations, Peter and Andrew Schiff retell their father's masterpiece (How an Economy Grows, and Why It Doesn't) in a new, modernized version. Whether you are new to, or are well versed in the Austrian School of Economics, I recommend that you read this book and pass it on to a friend when you are finished!

99 of 110 people found the following review helpful

5.0 out of 5 stars Great book! April 25, 2010

By Christian E. Furin

Format:Hardcover|Amazon Verified Purchase

This cute book explains economics in a simple way that is easy to understand. It uses humor and 'old school' story telling to break down how economies grow AND crash.
It also shows us how government intervention can also distort the economy.
I found it a unique way to teach children AND adults that the 'laws of physics' apply to everyone- including countries! It you spend more than you save, eventually you will pay a price. It is that simple. Our country is starting to see that. Many in our government keep promising us everything we want (free health care, low interest rates, practically endless unemployment benefits, tax credits and more) all WITHOUT raising taxes or actually growing the economy. At what point do we (or China) realize this cannot continue?????