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Book review: How an Economy Grows and Why it Crashes (2010)

Posted by Luke Boyle on the

Filed under economics, books

How an Economy Grows and Why it Crashes (henceforth known as "the book") is written by Peter and Andrew Schiff. The book is an allegory for the economy based on a fantasy island where every man needs one fish a day to be satisfied. The book outlines the ways the inhabitants of the island increase their productive capacity using capital investment and under-consumption in a very approachable and easy to understand manner. Peter and Andrew Schiff borrowed the central allegory from a book written by their father Irwin Schiff (revered tax protestor who wrote one of only two books to be banned in America called The Federal Mafia), entitled How an Economy Grows and Why it Doesn't. Having not read the original, I have to assume that the primary differentiating factor between the books is that the adaptation includes an explanation for the cause and the aftermath of the 2008 housing crisis.