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چگونگی رشد و فروپاشی اقتصاد

چگونه دولتها میتوانند بدون داشتن درآمد خرج کنند؟به چه دلیل برخی کشورها ثروتمند و برخی فقیرند؟راه درمان رکود اقتصادی چیست؟ پسانداز بیشتر یا مصرف بیشتر؟علل بهوجود آمدن تورم چیست؟به چه دلیل گرفتن ماهی با دستان خالی تا این حد مشکل است؟کتاب چگونگی رشد و فروپاشی اقتصاد با استفاده از تصاویر کارتونی، طنز و داستان، مفاهیم پیچیدهٔ مربوط به رشد اقتصادی و نظام پولی را شرح میدهد. نویسنچگونه دولت‌ها می‌توانند بدون داشتن درآمد خرج کنند؟به چه دلیل برخی کشورها ثروتمند و برخی فقیرند؟راه درمان رکود اقتصادی چیست؟ پس‌انداز بیش‌تر یا مصرف بیش‌تر؟علل به‌وجود آمدن تورم چیست؟به چه دلیل گرفتن ماهی با دستان خالی تا این حد مشکل است؟کتاب چگونگی رشد و فروپاشی اقتصاد با استفاده از تصاویر کارتونی، طنز و داستان، مفاهیم پیچیدهٔ مربوط به رشد اقتصادی و نظام پولی را شرح می‌دهد. نویسندگان کتاب، پیتر شف و آندرو شف مبانی رشد اقتصادی، موارد استفاده از سرمایه، ماهیت ویرانگر وام‌های مصرفی، علل تورم، اهمیت تجارت خارجی، پس‌انداز، ریسک و بسیاری از مهم‌ترین اصول علم اقتصاد را شرح می‌دهند. داستان کتاب ممکن است ساده و سطحی به‌نظر برسد ولی شما را به یک درک عمیق از چگونگی رشد اقتصاد و دلایل فروپاشی آن می‌رساند.http://nashreney.com/content/%DA%86%D......

Title : چگونگی رشد و فروپاشی اقتصاد
Author :
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ISBN : 9789641853336
Format Type : Paperback
Number of Pages : 248 Pages
Status : Available For Download
Last checked : 21 Minutes ago!

چگونگی رشد و فروپاشی اقتصاد Reviews

  • Mehrdad
    2018-12-09 18:49

    انصافا داستانی جذاب برای روایت اقتصاد انتخاب شده بوداگر قصد دارید اقتصاد رو به شیوه شیرینی یاد بگیرید از این کتاب غافل نشید

  • Yousef Chavehpour
    2018-11-13 17:31

    همین ابتدا بنویسم که کتاب یک داستان است که با سه نفر در یک جزیره و ماهیگیری آنها شروع میشود و تا چند نسل بعد از آنها جلو می رود. پر از تصاویر کارتونی است . فکر میکنم کسی ترجمه پارسی این کتاب را بخونه تا تمومش نکنه کتاب را زمین نمیزاره(با توجه به اینکه حجم کتاب هم زیاد نیست!) اگر چه من متن اصلی را خوندم و خیلی کم فرصت میشد سراغش برم اما ذهنم زیاد درگیر داستان کتاب بود همچنین به نیش و کنایه هایی که کتاب به شخصیتهایی که می شناختمشون(اسمشون هم مشابه اسمهای واقعی بود!) میزد . کتاب نقد شدیدی به کینزینها و دخالت دولت در اقتصاد دارد. در هر صورت نویسندگان نگاه اقتصاد آزاد را دارند و معتقد به مکانیسم بازارها هستند. در خلال داستان کتاب گریزی به مباحث روز اقتصاد آمریکا می زند و با داستان مقایسه میکند. گرچه داستان بسیار ساده است و هر فردی میتواند آنرا بخواند و کم و بیش با ساختار اقتصاد و آنچه در آن بحث میشود آشنا شود اما وقتی کمی بیشتر به عمق مطالب می روی و آشنایی با ساختار اقتصادی آمریکا و اندیشه های اقتصاد داشته باشی کتاب پر از چالش میشود . ساده سازی بیش از حد کتاب اذیتت میکند اما آموزنده است . کتاب یک نماینده خوب برای حوزه عمومی اقتصاد و معرفی یکی دو جریان غالب اندیشه در اقتصاد می باشد که در آن چگونگی تقسیم کار، پس انداز،تشکیل سرمایه،سود،مبادله و تجارت،تشکیل نهاد ها و سازمانهای اقتصادی ،ایجاد بحرانها در اقتصاد و . . . را بحث میکند . بنابراین خواننده عمومی با این ساختار ها به خوبی آشنا میشود و لذت می برد. خواننده ای که از اقتصاد می داند طنزهای بکار رفته در طول کتاب و مقایسه اش با وضعیت فعلی ایالت متحده و علل بحران اخیر اقتصاد را از دید نویسندگان کتاب می بیند و لذت هم می برد. پیترشف یکی از نویسنده های کتاب قبل از بحران مسکن ایالت متحده که به کل اقتصاد آمریکا و جهان سرایت کرد پیش بینی هایی داشت که درست از اب در آمدند. او مدافع سرسخت مکتب اتریشیها است که در کتاب هم به خوبی میشود حس کرد در هر صورت آزادی اقتصادی و سازو کار قیمتها در نگاه اتریشیها و سردرمدارانش(فون میزس،هایک و دیگران) ارزش والایی دارد ;) انگار داستان به نوعی مرتبط به پدرشان است که در کودکی برایشان تعریف کرده . فردی که در جنبش اعتراض به مالیات هم فعال بوده و الان در محکومیت چندین ساله خود بخاطر تخلف مالیاتی می باشد. بیخود نیست که بچه ها هم مخالفان دخالت دولت در اقتصاد می باشند :)) کلا با ستاره دادن راحت نیستم!از نظر اینکه کتاب اندیشه های کینزینها را به ساده ترین شکل ممکن در آورده و گزنده ترین نقدها رابه اون شکل ساده شده داشته یک ستاره باید کسر میکردم اما با توجه به اینکه کتاب مفاهیم اقتصادی را به شکل ساده و زیبایی برای خواننده تشریح کرده و میتواند سبب علاقه خوانندگان عمومی به حوزه اقتصاد بشود به کتاب تمام ستاره هایش را می دهم

  • Jay Roberts
    2018-12-03 16:31

    If you read this one book, and then formulate your opinions about the market with this material alone, you are a moron. This book will forever stick in my memory as a yardstick to determine intelligence by. I told my wife that it isn’t bad, per se. It’s just stupid, wrong, and written for a 5th grader. Admittedly, it simplifies a huge problem in a concise manner… but that’s the problem. It is such an oversimplification that it allows the author to subtly interject erroneous beliefs into the narrative. The technique is simple, dumb the subject matter down enough for the American masses, and then interject populist notions with thinly veiled race baiting in order to convert a preconditioned audience. There is a kernel of truth to the overlaying theme, which makes it easy to slip not only incorrect notions into the work, but dangerous ones as well.I read this book in less then 1 ½ hours, and found myself often reading a page with the knowledge that I had already 400-500 page works devoted to the subject at hand. I would recommend this work be used in a High School introduction to economics, but the sad reality is that many adults are going to base their world view on a piece of trash like this. Peter Schiff was smart enough to predict the markets, and I’ve always admired him for sounding the warning bells… this work sadly makes me think a world less of him.

  • Syd Amir
    2018-11-10 19:48

    به نظرم عنوان اصلی کتاب بهتر بود How an Economy Grows and Why It Crashesاین کتاب اصلا کتابی برای اموختن اقتصاد نیست بیشتر کتابی است برای اشنایی با تاریخ اقتصاد ایالات متحده و اینکه چطوره سر دیگر کشورها کلاه گذاشته و مشکلات داخلی خودش رو بیرون فرستاده ک البته برای این منظور کتاب خوبی بودنثر کتاب و داستانی بودن و طنزش خیلی دلنشین بود و باعث می شه به واقع همون طور ک مترجم هم گفته ادم نتونه کتاب رو زمین بذاره و یهو تا اخر کتاب می خونه و تمومش کنه.

  • Toe
    2018-11-20 17:24

    Peter Schiff exposes the flaw in Keynesian economics through the use of an extended allegory or parable. His story involves an island nation that grows from subsistence living to great prosperity and then declines. The island nation represents the United States. The story serves as a warning against Keynesianism.In the beginning, there are only three men. Each man catches and eats one fish per day. Then, one man decides to forgo his meal for the day to build a net, which proves successful and subsequently enables him to catch two fish in less time. This man uses the additional resources (free time and extra fish) provided by the net to lend, trade, and relax. Thus, the expansion of the economy begins. Other people on the island take similar risks.Schiff uses this simple storytelling device to introduce the reader to economic topics such as risk, capital, interest, money, inflation, bubbles, and busts. Peter Schiff is a free market libertarian who sees the government as the source of misallocation of scarce resources. His story traces the rise of the United States as an economic powerhouse from its inception through the first part of the 20th century. Then his story tracks its decline into economic stagnation following the ascendancy of Keynesianism, the income tax, and the Fed.Schiff shows why what we intuitively know to be true actually is true. These truths, so often ignored or obscured by fancy jargon or “education,” include: 1. Paper dollars have no intrinsic value.2. Printing more paper dollars will decrease the value of all other paper dollars.3. An economy is strong and grows because people produce goods and services.4. Consumption does not create a strong economy by itself.5. An individual or nation cannot become wealthy simply by consuming.6. The massive debt and deficits of the United States cannot be sustained.7. To deal with the massive debt and deficits, the United States can a. inflate, b. raise taxes and lower services, or c. default.8. Deflation, which is simply gently falling prices, is the natural result of a healthy economy free of government interference.9. Deflation arises because of increasing efficiencies of production.10. Deflation is a good thing for all consumers.11. Inflation is the result of politicians making promises that can’t be fulfilled.12. Politicians monetize the debt, which simply means inflate the currency to technically fulfill their promises.13. Inflation harms savers and helps debtors.14. Saving is the necessary prerequisite for capital accumulation.15. Capital can be thought of as something to help us make something else that we want. E.g., a shovel, a tractor, a factory, or any other tools.16. Capital accumulation is the necessary prerequisite for an expanding, healthy economy.So if Keynesianism is bunk, why is it so widely accepted amongst politicians and economists in academia? Schiff says that Keynesianism gives the appearance of a free lunch. It promises an unending economic boom based on spending. By encouraging politicians to spend, they can buy votes—politicians love to spend. How did the idea infest the academies? Those universities with people in high political offices get better grants and more prestige. Any economist who would tell a politician the truth that their officious meddling is causing more harm than good, that spending in one area creates asset bubbles and misallocations of resources, that saving a high paying job in industry A comes at the expense of all the other industries because customers have less money to spend elsewhere would not have that politicians’ ear for very long.Moreover, it is politically appealing for a politician to promise the world: a guaranteed job, a chicken in every pot, security in one’s old age even if you haven’t saved anything yourself, a Great Society with free housing and food stamps, free healthcare. This is a much more gripping and emotional tale than a stoic recitation of the importance of free markets and the gradual progress of innovation. There are less concrete guarantees in a free market even though such a system is precisely what enables politicians to promise to “spread the wealth around” in the first place.In the end, economics is ultimately the “dismal science.” There are no solutions, only tradeoffs. Keynes tried to change all that with faulty promises that too many have bought into. The United States, like France, the Confederacy, the Weimar Republic, Hungary, Argentina, Yugoslavia, Zimbabwe, and many others risks hyperinflation with its loose monetary policy and the lack of a currency backed by something tangible, such as gold. Schiff says that borrowing from China has enabled the U.S. to hold off tough decisions for a long time. China gives us goods and we give them increasingly worthless paper dollars. That situation can’t last forever.With pictures and large type, the book is a very quick read. The style is simple to the point of elementary. For those with no background in economics at all, it could prove useful. To my mind, supporters of Keynesianism can be exposed as charlatans by asking them one simple question: So, if your theory is correct, what’s wrong with counterfeiting?

  • sepehrdad
    2018-11-20 19:43

    در اصل نویسنده ی کتاب ایروین شف است. پدر پیتر و اندرو. او یک اقتصاددان بود و هنگام مسافرت و در ترافیک برای پسرهایش قصه های اقتصادی تعریف می کرد. قصه هایی خنده دار که مهم ترین مفاهیم اقتصاد کلان را در مغز پسرهایش حک می کردند. داستان جزیره ی اوسونیا در نگاه اول خنده دار و جالب است، ولی بعد که نگاه می کنی می بینی چه قدر با ظرافت مفاهیم غیرقابل تصور اقتصاد کلان را توضیح داده. ایروین این داستان ها را اولین بار در کتاب "بزرگ ترین کلاه بردار دنیا: چگونه دولت شما را لخت می کند، غارت می کند و می چاپد" چاپ کرده بود. سی سال بعد پسرهایش به آن قصه ها داستان بحران مالی 2008 آمریکا را هم اضافه کردند و کتاب را به روز کردند.راستش من فصل های اول کتاب را خیلی دوست داشتم. آن فصل هایی که در مورد نوآوری و پیدایش سرمایه صحبت کرده بود. آن فصل هایی که در مورد پیدایش دولت صحبت می کرد و با داستان ماهی ها به ظرافت معنای پشتوانه ی طلا را برای ارزها توضیح داد. و قشنگ ترین فصل کتاب برایم آن جایی بود که نشان می داد چطور آمریکا با استفاده از دلار ملت های دیگر جهان را غارت کرد... عالی توضیح داده بود این ها را....ولی فصل های آخر به نظرم خیلی عجولانه آمدند. آن ها هم در مقام تمثیل خیلی قشنگ بودند. ولی حس کردم هم به خاطر ترجمه ی بد و هم به خاطر عجولانه نوشته شدن آن طور که باید و شاید فرآیند بروز بحران را توضیح نداده بود. ساده سازی های فصل های پایانی زیاده از حد بود. در حالی که می توانست به زیبایی بازار مشتقات مالی را توضیح بدهد و بحران را کامل بگوید...از آن کتاب هاست که جان می دهد برای هدیه دادن...

  • Mohammad
    2018-11-11 23:22

    داستانی جذاب و ساده برای بیان مسائل اقتصاد کلاناگر علاقه مند به اقتصاد هستید و دنبال پیش زمینه ای در این موضوع هستید این کتاب رو از دست ندهیدداستان یک جزیره خیالی که با سه نفر شروع به رشد میکند ، رونق میگیرد ، وارد رکود میشود و سپس به بحران کشیده میشودنکته زیبایی که در این کتاب وجود داشت این بود که نویسندگان با ظرافت تمام ، به مشکلات اقتصادی کشور خود پرداخته بودند و از طنز و تصویر توامان بهره برده بودندایکاش ازین دست کتابها درباره ی مسائل مختلف کشور ما ، نوشته شود

  • Jeremy
    2018-11-30 20:40

    This book is pure, unadulterated genius.It explains where we’ve come from and where we’re headed. It explains how Keynesian ideas have prospered over Austrian economics, even though they are utterly, hopelessly wrong and are ruining our country. I cannot recommend this highly enough to anyone who cares about America. I read it in two days, easily, and so can you. Who doesn’t have two days to change their life?Quotes:We are told that we must go deeper into debt to fix out debt crisis, and that we must spend in order to prosper… The disconnect results from the nearly universal acceptance of the theories of John Maynard Keynes, a very smart early-twentieth century English academic who developed some very stupid ideas about what makes economies grow. As a consequence of their pro-government bias, Keynesians were much more likely than Austrians to receive the highest government economic appointments. Universities that produced finance ministers and Treasury secretaries obviously acquired more prestige than universities that could not. Inevitably economics departments began to favor professors who supported those ideas. Austrians were increasingly relegated to the margins. The truth is that the Fed now exists for the sole purpose of providing the inflation necessary to allow the government to spend more than it collects in taxes.During the Depression, President Roosevelt decided to devalue the dollar against gold. In order to pull this off, the government had to control the entire gold market, and for a time the government made it illegal to own gold coins. Later on the ability to redeem the notes for gold was restricted to just banks, then to just foreign banks, and then finally to no one. We are left with a currency that has no real value and can be expanded at will. This has prevented the government from ever having to make hard choices about spending and taxes, and has set us on a path that will eventually destroy the remaining value of the dollar.Although economists talk like they have seen it all before, the truth is humanity simply has no long-term precedent for universal economic activity based on irredeemable paper money… now we are in a “through the looking glass” world where, for the past 40 years, no country issues real money. This is the biggest monetary experiment even conducted. No one knows how or when it will end. But rest assured, it will.When the economy started to contract, lawmakers and economists treated the development not as the inevitable consequence of years of easy money and overspending, but as the problem itself. In other words, they mistook the cure for the disease.An economy can’t grow because people spend; people spend because an economy grows.The creation of ever greater quantities of debt has given us a reprieve from the process of returning to living standards commensurate with our productivity. But at some point in the foreseeable future, perhaps in the next few years, we will have a very ugly encounter with our debt. France in the 1790s, the Confederate States of America in the 1860s, Germany in the 1920s, Hungary in the 1940s, Argentina and Brazil in the 1970s and 1980s, and Zimbabwe today. In all of these instances the circumstances that led up to the hyperinflation, and the economic devastation that followed, were remarkably similar. The countries satisfied staggering debt by wiping out the value of their currencies. As a result, their own populations were thrown into abject poverty. By refusing to allow market forces to rein in excess spending, liquidate bad investments, replenish depleted savings, fund capital investment, and help workers transition from the service sector to the manufacturing sector, the government has resisted the cure while exacerbating the disease.

  • Yavar Moshirfar
    2018-12-05 00:25

    A simple yet effective book to understand economy in principle. I enjoyed reading it.

  • Nilesh
    2018-11-30 21:48

    This book reflects my views and style more than anything I have read that's not my own. Hence the rating could not have been any different!Economic theories need to be de-jargonized every now and then to understand the stupidity of some of the things that policymakers do or are recommended to do. Extremely few people, with many experts excluded, tend to understand the basic meaning of some their pet economic solutions or policies. Complex theories effectively lead to equivocation, obfuscation of who bears the real costs (often future generations, or disconnected people) of things that appear like free lunches or financial/economic progress. More often than not gains our of economic decisions come at extreme costs and only jargon-less observance could lead to a discussion of true cost-benefits.This is what the book tries to do for the way at least one type of economic cycle is generated in this book. One may or may not agree with the theories or conclusion, but one is unlikely to walk away without new understandings.The book, in all its simplicity, is witty and hits home some basic truths not told in economic textbooks these days. Its scope is broad and brush too narrow as a result its simplicity becomes a hindrance. The conclusions are too sweeping and most-tellingly ignore the "time" element. This is a book more for people who want to think about the implications of economic theories on real life, for decision makers in policy but not for most financial market investors.

  • Miroslav Krajnak
    2018-11-29 00:21

    This is my review on Amazon dated October 22, 2013:The book walks you through the basics of "island economics," in which FUNDAMENTAL ECONOMIC PRINCIPLES in a hypothetical three-man (initially) economy are explained.It is basically an allegory of the US economic history riddled with lots of illustrations that add visual dimension to the humor in which the authors present the story. No, a touch of humor does not at all downplay the seriousness of the subject matter, nor does it detract anything from the LOGIC and COMMON SENSE in the economic principles described.There are quite a few principles that I would have permanently engraved, if I could, on the minds of today's leaders and mainstream economists, but if I was to bring up just one for all, it would be that SAVING IS EXTREMELY IMPORTANT FOR ANY ECONOMY TO BE HEALTHY. Unfortunately, we live in an inflationary period in which high time preference (consumption) is considered rational, while prudence (saving) is viewed silly. We live in a world in which it is believed - by those in power anyway - that we can "spend our way" to prosperity. The economy, HOWEVER, does not grow because the society consumes more. Vice versa, THE SOCIETY CONSUMES MORE BECAUSE THE ECONOMY GROWS (as a result of increased productivity).

  • Marco Rösler
    2018-11-13 22:44

    Worum ging es in dem Buch?Dieses Buch erklärt den Verlauf der Wirtschaft der USA mithilfe einer Parabel: Drei Männer leben auf einer Insel. Die Wirtschaft wächst und es kommen mehr Menschen hinzu, weil immer wieder Unternehmer Opfer und Risiken auf sich nehmen, um Werte zu schaffen. Es entsteht ein Staat, der den Markt immer mehr verzerrt. Es erfolgt der Übergang zur Papierwährung, Blasen und Crashs.Was habe ich gelernt?Ich habe leider nicht viel gelernt, was ich vorher schon wusste. Allerdings war es unterhaltsam, das Buch zu lesen und mir wurden manche Konzepte nochmal ins Gedächtnis gerufen. Einzelne Fakten waren mir neu.Welche drei Fakten, Ideen oder Prinzipien möchte ich mir am meisten merken? * Die Prinzipien, die im Familienhaushalt gelten, gelten auch im Staatshaushalt. * Es ist sehr nützlich, in Allegorien zu denken, wenn man etwas aus der Volkswirtschaft nicht versteht. * Eine Hyperinflation in den USA oder in Europa zu meinen Lebzeiten ist nicht unwahrscheinlich.

  • Andrew Fish
    2018-12-09 17:37

    Fun, but flawed.As a basic primer on the evolution of economies, this book is a light and fluffy start for the layman. Where it is flawed, however, is that it's written with a conclusion already in mind and the analogy on which it builds is therefore twisted to suit that view. The trouble is that the gold standard, which this book extols, is not the same as an economy based on fish - fish being a resource which can be replenished and grown. A real economy, based on gold, can only be stifled by the limited supply and filled with inequalities by the uneven distribution. Nonetheless, the book is enjoyable.

  • Nathaniel
    2018-11-17 00:46

    Very entertaining and a remarkably easy read. Schiff argues compellingly that the basic principles of an economy remain basically the same between large and small economies. He allegorizes how an economy grows in the story of small fishing economy, providing many clear insights in economics along the way.

  • Ashish Joshi
    2018-11-30 21:23

    This book must be read at an age when your mind is ready to differentiate between the prevalent economic ideologies and their merits/demerits but certainly not before an age where you cannot locate the fallacies in the author's arguments. Without any background in economics, I personally wish I could have read it before my post-graduation in business management.

  • V K
    2018-11-14 21:45

    A really good easy explanation for what's happening with our economy and why, for people who couldn't be further from economic theory. Perfect. Can this be required reading for our federal government and ALL high school seniors? This instead of a standardized test please.

  • Marie
    2018-11-22 16:32

    The allegory in this book is useful for understanding economic principles, but the author's main message seems to be that an unregulated market economy is always the best thing for everyone, and problems occur only when government steps in to try to help. Everyone on the island seems to benefit equally from advances in technology; somehow the guy catching fish still earns a livable wage even when there's someone who owns all the nets and boats. It seems to me it's easy to say "look where Keynesian economic thinking has gotten us" when the alternatives haven't been tested under similar circumstances. Still, he makes it pretty clear that spending and lending are not the ultimate fix, and I believe him that our economy is headed for trouble.

  • Michał Gąsior
    2018-11-23 22:38

    Mimo uproszczeń, wciąż świetna książka, która wyjaśnia przyczyny i skutki globalnego kryzysu z lat 2007-2010. W jasny sposób opisuje dlaczego ten problem nie został jak dotąd rozwiązany i dlaczego jego przykre konsekwencje zostały jedynie odroczone w czasie.

  • Massgreen
    2018-11-16 20:48

    Economy will be better off by running free market. Artificially low interest rate to stimulate spending is not the way to boost/recover the economy. The governments attempts to smooth out the volatility of free markets by expanding the supply of money and running large budget deficits when times were tough set a greater fall in the future.good fact: "Inflation is simply a means to transfer wealth from anyonewho has savings in a particular currency to anyone who hasdebt in the same currency. With hyperinflation, the valueof savings gets completely wiped out and the burden of debtis removed. (Those who own hard assets do okay, because,unlike savings in currency, assets will rise in nominal valuewhen inflation flares up.)"Chapter 1:The economic activity of Underconsumption and risk-taking can lead to improvement in living standards. These self-sacrifices lead to the creation of capital.The simplest definition of economy is the effort to maximizethe availability of limited resources (and just about everyresource is limited) to meet as many human demands aspossible. Tools, capital, and innovation are the keys to thisequation.Keeping this in mind, it is easy to see what makes economiesgrow: finding better ways of producing more stuff thathumans want. This doesn’t change…no matter how big aneconomy eventually gets.Chapter 2:The economy didn’t grow becausethey consumed more. They consumed more because theeconomy grew.Most economists think that demand can be increasedby giving people more money to spend. But that doesn’tchange real demand, just how much people can spend onitems that have been produced. Only by increasing supplycan people actually get more of what they demand.Because of Able’s desire to make a profit from his savings,Baker and Charlie got the opportunity to build nets withouthaving to under consume. If they succeed, they will haveimproved their economic futures without having to go hungry.The rest will be gravy… or more accurately, fish oil. At thatpoint, they themselves will have excess capital. If they fail, andare unable to pay back the loan, it’s Able who takes the loss.Essentially, the lender can benefit only if the borrower benefits."Simple logic, if I lend you money, I will hope you strive and pay me back later with interest"If the only way to make his savingsgrow (without working himself) is to make it available toother members of the community, why would he hoard it?Otherwise his wealth will stay the same or get smaller ashe personally consumes it! The best thing about privatecapitalism is that it forces those who may only be motivatedby personal gain to raise the living standards of others.The use of credit is the perfect example of how economicfreedom works to everyone’s benefit. As long as lenders andborrowers are free to strike their own terms, the collective resultswill be a success. However, as we will see later on, themarket for loans can be distorted by outside forces. When itis, disaster usually ensues.Chapter 4:What if you spent $1 million, but bought nothingbut air? How would this benefit society? It would surelybenefit the person who sold you the air. He would getthe million dollars formerly belonging to you. Using ourmodern methods of economic accounting, such as themeasurement of gross domestic product (GDP), such atransaction would certainly look like genuine activity. Itwould be counted as $1 million worth of growth.But the act of buying air does not improve the economyas a whole. The air was always there. Something has to beproduced to give the spending any value.Chapter 5:As echoed in the preceding tale, falling prices don’thurt Duffy. In fact, as prices for all things come downthrough similar productivity gains in other industries, thefish he earns will enable him to buy more things.Innovation is a one-way process. Unless people forget whatthey already know, efficiency always compounds. As aresult, prices tend to come down over time.Steadily dropping prices also encourage savings asislanders begin to understand that their fish would likelybuy more goods in the future than they do today. As crazyas it sounds, a fish saved is indeed a fish earned. Thisencourages savings, thereby swelling the amount of capitalavailable for loans.In fact, if consumers are not spending, the best way to spurdemand is to allow prices to fall to more affordable levels.Chapter 7:Currently, many politicians and economists erroneouslyview infrastructure spending not as a near-term cost thatmay lead to long-term gain, but as an immediate meansto create jobs and boost the economy. This view canlead to costly misallocations of resources and the unseendestruction of jobs in other areas.Chapter 8:Because the islanders understood that governmentspending was really the same as taxpayer spending, theybelieved that it should be the taxpayers who decided howthe money was spent. As a result, voting was restricted tothose who paid tax.It was also understood that taxes reduced the available poolof savings on the island and limited the supply of investmentcapital. But most island residents agreed that the commercialbenefits that flowed from increased island security, fewercanoe wrecks, and a court system that enforced contractsand disputes, more than compensated for the lost savings.Chapter 9:As discussed earlier, the United States experiencedsustained deflation for most of its history. Thenin 1913, the Federal Reserve was established. The notes itissued, which promised to pay the bearer gold on demand,replaced the private bank notes then in circulation, whichoffered similar guarantees. But as soon as the Fed came onthe scene, prices started rising steadily.We are left with a currency that has no real value and canbe expanded at will. This has prevented the governmentfrom ever having to make hard choices about spending andtaxes, and has set us on a path that will eventually destroy theremaining value of the dollar.Chapter 10:Any dictionary printed before 1990 defines inflation purelyas an expansion of the money supply.During a recession people wisely stop spending. When theydo, demand drops and prices should fall. But sometimes theseforces are counterbalanced by an expanding money supplythat diminishes the value of currency. When inflation ispresent in a recession, prices may go up (if the printing is fastenough), stay flat, or fall less than they would have with noinflation.But during a recession prices need to fall in order torebalance the economy. Recessions should be deflationary.Falling prices will cushion the blow of low employment.Somehow, modern economists see falling prices as a neverendingabyss toward demand destruction. They forget thatwhen prices fall far enough, people start spending again. Theprocess allows unneeded inventories to be worked off, andfor prices to fall to a level justified by underlying supply anddemand.By keeping prices artificially high, inflation prevents this fromhappening.Chapter 11:Many of these dollars held by foreigners are typicallydeposited in American banks, where they can be borrowed byAmericans. That way we can spend even if we don’t save.Without these savings from China and other nations,everyone in the United States including the governmentwould have a much more difficult time borrowing, and theywould likely have to pay much higher interest rates for theprivilege. High interest rates and scarce credit would be alethal combination for our debt-fueled economy.As current American leaders come into increasing conflictwith China, this lifeline needs to be clearly understood,before it is callously cast adrift. Of course, since thisrelationship cannot last forever, the sooner it ends the lesspainful it will be, particularly for Americans. The longer youeat for free, the harder it is to feed yourself when the free foodstops coming.Chapter 12:For most of our history the United Statesexported much more than it imported, resulting in tradesurpluses. In some years, especially toward the middle of thetwentieth century, these surpluses were truly massive. Weused the excess funds to build more capital at home, and tobuy up more capital abroad. In the process we became therichest country on the planet. But in the late 1960s the tradebalance started to change, and by 1976 the United Statesbegan running persistent trade deficits.The dollar’s reserve status has played a significant rolein allowing this deficit to grow unchecked. Without thebuilt-in demand for dollars made possible by the globaleconomic system, no country could long sustain suchimbalances. Companies and governments would simplyrefuse to trade goods for a currency with which it couldn’tbuy anything.Normally, trade deficits tend to be self-correcting.A country with a trade surplus, in that it sells more abroadthan it buys, will create an international demand for itscurrency. If you want its stuff, you need its currency. As aresult, strong trading positions tend to strengthen a country’scurrency. The opposite is true with countries with weaktrading positions. If no one wants your stuff, no one reallyneeds your currency.But when a country’s currency rises, its products becomemore expensive. This gives a competitive opportunity tocountries with weak currencies to start selling some of theirproducts into that market. When they sell more, demand fortheir currencies rises. This currency counterweight shouldkeep runaway trade imbalances in check.But the dollar’s reserve status, and the decision of the Chinesegovernment to maintain the currency peg, has gummedup the machinery and has allowed the situation to growdangerously out of kilter.Chapter 13:History can show us many episodes in which individualgovernments, out of fi scal desperation, hitched their wagonsto worthless currencies. Those experiments always ended ingrief, especially for the citizens of the offending country.That’s because it is impossible for one country to sustaina worthless currency while its neighbors continue to issuereal money. Naturally, foreigners would refuse to take theworthless currency, and eventually a black market for realmoney would arise in the country itself.But now we are in a “through the looking glass” world where,for the past 40 years, no country issues real money. This is thebiggest monetary experiment ever conducted. No one knowshow or when it will end. But rest assured, it will.Chapter 14:Although these loan policies appeared to be a win-win forall involved, in truth, the system created great dangers.The Senate had distorted the credit market by imposingincentives that favored hut loans and education loans overother loans that had no guarantees. Loans were now beingmade not because they were necessarily the best use ofsavings, but because the senators had a political stake inencouraging hut ownership and education.Chapter 15:With homesworth less than their underlying loans, the temptation towalk away from big payments became intense. This wasespecially true for those who did not put any fish down atpurchase. Having made no prior commitment of funds,these borrowers had nothing to lose by not paying theirmortgages and allowing the bankto foreclose.Economists have declared that if the people can’t spend,the government needs to step up and do it for them. Butthe government doesn’t have any money. All it has is what itcollects in taxes and what it borrows or prints.For now, this process is just creating massive public debt ($1.6trillion per year and counting). And although the numberslook bad, we are still able to sell most of this debt on the openmarket, primarily to foreigners.But our “good fortune” can’t last forever. Ultimately theU.S. government will have only two options: default (tell ourcreditors that we can’t pay, and negotiate a settlement) orinflate (print money to pay off maturing debt). Either optionwill lead to painful consequences. Default, which does offerthe possibility of a real reckoning and a fresh beginning, isactually the better alternative. Unfortunately, while inflationis worse, it is also the more politically expedient.Chapter 16:If our government won’t impose financial discipline, then ourcreditors, most notably China and Japan, eventually must.Although there are many forms in which this discipline couldbe delivered, the most likely method is that they simply stopbuying our debt.Once they realize that the continual extension of creditto a customer that can’t pay is a waste of resources, theywill change course. At that point they will refocus theirproductivity on domestic consumers, who will then fullyenjoy the fruits of their labor.When that day comes, we will have two choices: default orinflation. Both options will violently force American livingstandards downward through lost purchasing power andhigher interest rates.Chapter 17:As more products were produced for local consumers, Sinopianstores suddenly found themselves stocked with goods.Increased inventories meant that pricescould come down.With fewer products coming in fromSinopia, Usonian retailers wereleft with diminished inventories. The result of skimpier fishchasing fewer products was soaring prices!Inflation is simply a means to transfer wealth from anyonewho has savings in a particular currency to anyone who hasdebt in the same currency. With hyperinflation, the valueof savings gets completely wiped out and the burden of debtis removed. (Those who own hard assets do okay, because,unlike savings in currency, assets will rise in nominal valuewhen inflation flares up.)

  • Mark Geise
    2018-12-11 00:33

    “How an Economy Grows and Why it Crashes” is an enjoyable read by Peter and Andrew Schiff. It is obviously a simple allegory, but I think it does a great job to illustrate things that have happened and continue to happen on a global scale. Due to the economics profession, most people believe that macroeconomics is beyond their understanding. Much of the economics profession has (I believe) intentionally obfuscated basic concepts to put them out of reach of the layman. I laughed out loud a few times throughout this book; the Schiffs certainly have good senses of humor. “Slippery Dickson”, based on Richard Nixon, and “Ben Barnacle”, based on Ben Bernanke, were just a couple of the many funny names and characters in here. “How an Economy Grows and Why it Crashes” is the story of three men on an island. Each of these men has to fish with his hands all day to catch the one fish he needs to survive to the next day. Finally, one of the three men decides to under-consume for a couple days to build a net-type device that he believes would make him a more productive fisherman in the future. After this under-consuming, he succeeds in building the net and becomes much more productive than the other men on the island. He begins to hoard the fish that he catches at a much faster rate than the other two men, but then agrees to lend the other men fish for a couple days while they build their own nets in return for a payoff of more fish after they build their own nets. The others succeed in building their nets, repay the first man, and then the three are able to specialize because they do not need to spend all day fishing to have enough food to survive. The rest of the book continues like this, building from the three men to a small society of people (fueled by immigrants coming in from abroad). The island becomes a nation called Usonia and adopts a constitution much like the U.S. Constitution. The country eventually creates its own currency and then manipulates its currency. I do not want to delve too deep into all of the details and ruin the illuminating parts of the book, but it is an interesting and accessible storyline. Peter Schiff has been one of the most cogent voices throughout the Great Recession and its aftermath, so his analysis is worth the time to read. This is a quick read and is accessible for virtually any age and any familiarity level, so this could be a good introductory book for economic ideas for a young student. A complete novice likely will not be able to appreciate some of the jokes, but it would be valuable and entertaining nonetheless. Economic laws do not cease to exist just because we apply them to a large country like the United States or to a complex global economy like the one in which we live. It is difficult to take what has happened within the United States and apply it to a hypothetical small island society, but I believe that the Schiffs succeeded in doing so with this book.

  • Lynda
    2018-12-10 20:25

    This is the first book I have read two times back to back. For economics majors who were (only) exposed to Keynesian economics, this book serves as a wake-up call. The book's substance and argument are profound despite its 'fun' tone with the wonderful cartoons displayed throughout and its compact size and accessible language; no American should go about their lives without reading it. When reading the news about how Fed pondering raising interest rates later in 2015 since they claim the economic fundamentals are strong, that's when it's time to look deeper into the real meaning behind that confusing message. Unemployment and underemployment are still high in the U.S. despite the supposed positive growth post-2008. News about a 'strong economy' ring hollow for many Americans. We get bombarded by propaganda indicating that consumption in the US is vital for economic growth. The reality is structural changes must be made to the US economy where its citizens start to save more, thereby generating capital for investment, which then will flow to production and create further value in the economy. Instead, we live in 'comfortable' times with low interest rates, low savings (rates are low, so where is the incentive to save, and there is no need to produce anything, just buy cheap goods from China), cushioned by the US dollar's reserve status, allowing the government to spend its way out of debt by printing ever more money (read: inflation). Peter Schiff states that "...in our desire to make the pain of economic contraction go away, we have forgotten that freedom involves risk. If government is obligated to cure all hardships, then no one is really free in the first place. Take away the freedom to fail and you have obliterated the freedom to succeed." What an indictment to the Keynesian economists, politicians and private corporate interests who engineered the bailouts and intervention to 'save' the economy.

  • Mustafa Abdelrahman
    2018-12-05 22:49

    With the simplest and most interesting approach, the author demonstrated the main economic principles staring from microeconomics to the international trade with a highlight on the relationship between china and the US.The book starts by a tale of three men living on an island with one requirement to live,Each one has to catch at least one fish.For simplicity, they spend the whole day to catch that fish.After that, one of them came up with an idea ,that would boost the productivity of the entire island, which is catching this fish using a NET.By using this net he could easily catch that fish and starting to SAVE.However, he has to spend a day to make that net which make it impossible to catch a fish in order to live so, he decided to accept the RISK to stay hungry and to make that net.The following day he made the net and it was ready to catch not only one fish but also more than one which means he will be able to consume more than one a day or to save for the future and stay consuming only one fish a day.The other two men starting to realize that the idea of caching fishes by using a net is more EFFICIENT than using the traditional way,but they have to stay hungry like the first one or to take a fish from the first one and continuing their production of the net.The first one accept the idea of granting them a LOAN with an interest that they will receive a fish today but also the have to repay that lone by paying a fish and a half one.That interest is considered to be a COMPENSATION for the risk the first one has already taken.

  • Bill Peacock
    2018-11-22 22:29

    Peter and Andrew Schiff wrote this book based on the book by the father Irwin. It combines simple explanations and cartoon-like illustrations on almost every page to lay out clearly the effects of government intervention in the market. It begins with three men on a Pacific-style island who work all day to catch one fish with their bare hands--just enough to survive. One of them, Abel, finally gets tired of sustenance living and his desire for more leads him to invent a net. Abel has to go without eating for an entire day without eating to expend the labor needed to build his net. But his efforts paid off, as he netted two fih in just a matter of hours the next day. From there the island economy takes off and their way of life is changed for ever, However, when the island gets big enough that a government is formed, regulations and intervention in the money supply begin to unravel some of the prosperity brought about bu the market. Crafty politicians, though, are able to hide their role in the islands problems and continue to get elected and mess things up even more. Sound familiar? My 11 year old son loved the book as i read it to him, but it also helped me see more clearly some of the ways that government today destroys the fruit of the creativity and industry that God has given to each of us.

  • Clinton
    2018-12-03 17:42

    Although the book only briefly illustrates the philosophy of Austrian Economics, How an Economy Grows and Why It Crashes is a wonderfully concise and entertaining story for those who are unfamiliar with Austrian Economics.The story begins with explaining the nascent of an economy through Crusoe Economics. Economic growth is expanding the use of land and labor through production and savings by restraining present consumption for future consumption in support of more efficient uses by investing in capital goods.As an economy grows, property is unprotected, and rule of law is established through a republic. However, over time, government has a deep propensity to expand in power and control, and the most dangerous is the manipulation of currency and interest rates through a central bank. The manipulation of currency and interest rates is the cause of all recessions and depressions. Therefore, as America continues to over consume and over borrow and under produce and under save, it will bring disastrous consequences for posterity. Overall, Peter and Andrew Schiff brilliantly recreate Irwin Schiff’s story into a newly edited version.

  • Arun Mahendrakar
    2018-11-17 16:24

    The book discourses the subject of Economics in a highly comical way. The 'story', so to say, correlates with real life examples of the growth and fall of the US economy. I was disinterested / disinclined in Economics during my school days probably because my teachers made the arcane and boring subject it even more torturous. The authors on the other hand transformed it into a highly entertaining and enlightening topic.The mantra "Productivity, not spending, is the key for economic growth" stands out for me in the entire book. "If you want its stuff, you need its currency." - how ingeniously well-stated.The author encourages global free-trade and suggests that although some businesses might close due to inefficient practices in producing some goods, the countries involved will nevertheless grow in the long run.The latter part of the book concentrates on the interaction between US and China and shows how China is playing a bigger role than what meets the eye.I'd like the authors to extend this book to show how '$' affects the economies of the rest of the countries.

  • Rohan Rajiv
    2018-11-22 00:35

    First, let me get the obvious out of the way – yes, this book isn’t perfect. It can be very simplistic at times and the writer does have a clear political agenda against the US government’s financial policy.Now that I’ve said that, this book is a must read for everyone. I say everyone because we all deserve to understand how an economy works. The authors lay out the principles of economics and call bullshit on the idea that micro economics is essentially different from macro economics. They do it by taking us through the growth and crash of an island’s economy (and do this with lots of digs at the US-China relationship. The islands are called Usonia and Sinopia :))Fantastic book. It points to a scary conclusion – the whole idea of a paper currency anchored in nothing but trust is a massive experiment and one that could result in mass default and failure.More on http://www.rohanrajiv.com/blog/?p=882

  • Zbyszek Sokolowski
    2018-12-09 23:49

    This funny from the first impression book describes not so funny thesis. The US economy is not so stable as many people think. Years of spending more than they earn, living on a credit, not boosting economy and mainly production but only services. And increasing budget deficit and selling their debts to China and Japan can finish very badly. This situation can't last for ever. And panacea for trouble can't be further making debt. The funny fact is that Alan Greenspan frequently mentioned in the book has written that over regulated market cannot work. He mentioned Soviet model. However Americans do the same only scale is smaller. Over regulated market can't find its balance. I think that the gold standard which is adored by authors has different flaws and cannot be treated as panacea as well. Anyway book with its story about island and market makes it nice to read.

  • Hikmat Kabir
    2018-11-25 00:27

    Pretty radical stuff this. Peter Schiff appeals for a lot of drastic ideas that can come off as a bit profound. I've felt this way more so due to the fact that this is my first time encountering the Austrian school of economic thought compared to the usual Keynesian theories I've been taught all my life. The writing is pretty simple and easy and can be finished in under an hour. The last few chapters are a bit complicated and could have used a lot more details. Anyhow, its a pretty good book on getting to know the basics of macroeconomics although I'd suggest people not to base their economic knowledge on this book alone.

  • Jacques Bezuidenhout
    2018-11-13 22:43

    Quite a fun little book. Really enjoyed it.It is told in a fictional way based on the lives of some island people.Is it over simplified? Probably. Who cares.It explains what is needed in an easy to understand and fun way.Combine this book with The Dictator's Handbook: Why Bad Behavior is Almost Always Good Politics and you've got yourself a lot of reason to be mad at government and politicians.Probably not meant for everyone, but a sweet and short filler.

  • Fab Mackojc
    2018-11-10 18:40

    I really enjoyed this book. It’s a novel way of explaining basic economics. Although the author has pretty strong views against government intervention in the economy. While I don’t necessarily disagree with these views I feel like this permeated a bit too much through the book. I definitely enjoyed the multiple parodies of real people using fish references. George W. Bass and Barack Ocuda are two of the leaders of “Usonia” haha. Although it’s a massive simplification you can still get the gist of what caused the US debt crisis and realize the dangers of a currency with no intrinsic value. If you want a simple introduction to economics this is worth reading.