How an Economy Grows and Why it Crashes: Two Tales of the Economy

Through the adventures of three men creating a new society, the authors present a comprehensive look at the economic principles that affect each of us. Entertainingly written, you will meet the three men who develop a new society from the shores of the deserted island they are contentedly living on. Content that is, until news of their prosperous, uncomplicated life spread to the other islands. While there were ample assets to support a greater population, a diversified island economy quickly developed. This simple society became more complex, leading to the need for a central government, which grew to meet the perceived needs of the islanders. Through the humorous story, students will gain a understanding of Keynesian and Austrian economics, economic growth, the importance of trade, savings and risk, inflation, interest rates, government stimulus plans, lending and borrowing, the destructive nature of consumer credit, and much more.

Each chapter in the story ends with a "take-away" overview which relates the concepts taught in story format to the actual economic history of the United States. Black and white caricatures abound. An expanded retelling of previous works by economist and "low tax through limited government" advocate Irwin Schiff, (who is also the father of the authors of this edition) is included. HC.228 pgs. ~Deanne