The fishers were very inefficient at the beginning but soon with savings and rise in their productivity because of savings, they created more and more products and became very prosperous. This concept was explained by using an interesting tale of fishing. The efficiency was quite low and with the savings, the labor creates capital and that capital is used in improving the efficiency of the labor and trade is also born in between. Earlier there were only labors and no capital. The book starts with the basics of an economic system i.e. There are takeaways after every chapter which are priceless and explains the economics concepts discussed in the chapter with some real life examples. The characters of the book are named so that one can relate it to the real world. It is a small book and tale is written in such a wonderful comical prose that one can simply finish it in one sitting of four to five hours. The book has been divided into 17 small chapters and has a total of 233 pages excluding introduction. The understanding of economics becomes so simple and clear and one can understand the motive behind the moves of Federal Reserve Bank and mainstream economists when they support such silly fallacies ( broken window fallacy). No wonder that the Nobel Prize winner economists are saying that the alien invasion can help in boosting the aggregate demand. After reading the book, one has no options left other than to laugh at the silliness of mainstream economics. The book doesn’t simply deny the Keynesian economics but totally demolishes it with a tale. by removing the private players from the system and excess of spending from the government (or one can say by giving the capital to its most efficient users) one can increase the GDP which would be beneficial for the country. by debasing the currency and by expansionary fiscal policies i.e. Keynesians say that with the magic wand of Fed Chairman, i.e. The book totally demolishes the Keynesian economics that spending is necessary for the boosting of aggregate demand and the aggregate demand would lead to a rise in GDP. Andrew Schiff is also a stock broker at the same firm. and is famous for his predictions about the housing bubble which every other economist and market analysts were denying.
The author of the book, Peter Schiff, is the owner of Euro Pacific Capital, Inc. It is such a refreshing read after all the cumbersome economics books with lots of graphs and formulas. The book “How an Economy Grows and Why It Crashes” is a wonderful tale written by Peter and Andrew Schiff.
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