I found a very well done comic book that was written by Irwin Schiff, father of Peter Schiff. It’s called “How an Economy Grows” and it is available in its entirety here.
He attempts to explain how an economy functions by using an extremely simplistic example of three men on an island who catch and consume fish. The story becomes more elaborate as the characters develop new tools, and more people are brought into the picture. Further into the book, banking and government intervention are introduced.
This is a great introduction to basic economic principles, and it also helps to explain the origins of the banking crisis, and every other government-induced financial crisis, and the inevitable adjustments that will take place. It’s worthwhile reading.
It was written in 1985, but it couldn’t be more relevant. The parallels are crystal clear.
Why’d you link Peter, but not his dad Irwin?:
http://en.wikipedia.org/wiki/Irwin_Schiff
When you use a description like “extremely simplistic example” a lot of people will assume that the example isn’t valid. The example clearly illustrates a fundamental principle, and the following examples illustrate increasingly complex *applications* of that very same principle.
The error too many people make is confusing the underlying principle with the application, whether or not the application is correct, just as Madlen Read and the editors of the Monroe News have confused capitalism with the current state of the US economy.
I don’t know why i didn’t link to Irwin Shiff. I guess Peter has just been in the media a lot lately and I wanted people to check out what he has to say.
the initial example used was very simple in order to demonstrate the economic principles to those who fin dit difficult to see through the myriad of transactions in a larger scale economy. I did not mean to suggest that it invalidates the example. the principles are the same regardless of the complexity or size of a particular economy.
I agree. It’s a shame that so many editors, pundits, politicians, etc., erroneously blame economic problems on free markets.