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How an Economy Grows and Why It Crashes by Peter D. Schiff
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Feb 01, 12

it was amazing
bookshelves: favorites, non-fiction, economics
Read from January 27 to 31, 2012

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.
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