Inspired byHow an Economy Grows and Why It Doesn?t?a previously published book by the Schiffs? father Irwin, a widely published economist and activist?How an Economy Grows and Why It Crashes incorporates the spirit of the original while tackling the latest economic issues.With wit and humor, the Schiffs explain the roots of economic growth, the uses of capital, the destructive nature of consumer credit, the source of inflation, the importance of trade, savings, and risk, and many other topical principles of economics.

The tales told here may appear simple of the surface, but they will leave you with a powerful understanding ofHow an Economy Grows and Why it Crashes.

PETER D. SCHIFF is the bestselling author ofCrash Proof 2.0: How to Profit from the Economic Collapse andThe Little Book of Bull Moves in Bear Markets. This is his first collaboration with his brotherANDREW J. SCHIFF, a recognized expert in economic and financial communications.

DISCLOSURE VIII

AUTHORS NOTE IX

INTRODUCTION XI

CHAPTER 1 AN IDEA IS BORN 1

CHAPTER 2 SHARING THE WEALTH 13

CHAPTER 3 THE MANY USES OF CREDIT 27

CHAPTER 4 ECONOMIC EXPANSION 37

CHAPTER 5 PROSPERITY LOVES COMPANY 47

CHAPTER 6 PUT IT IN THE VAULT 63

CHAPTER 7 INFRASTRUCTURE AND TRADE 77

CHAPTER 8 A REPUBLIC IS BORN 91

CHAPTER 9 GOVERNMENT GETS CREATIVE 101

CHAPTER 10 SHRINKING FISH 119

CHAPTER 11 A LIFELINE FROM AFAR 129

CHAPTER 12 THE SERVICE SECTOR STEPS UP 141

CHAPTER 13 CLOSING THE FISH WINDOW 153

CHAPTER 14 THE HUT GLUT 161

CHAPTER 15 THE HUT RUT 177

CHAPTER 16 STEPPING ON THE GAS 193

CHAPTER 17 THE FISH HIT THE FAN 209

EPILOGUE 223

ACKNOWLEDGMENTS 229

ABOUT THE AUTHORS 231

ABOUT THE ILLUSTRATOR 233