Interesting Reading about the Economy?

  My husband is very interested in finance, the economy and the market, and he reads extensively on these topics.  Occasionally, he will read a book and say, "You should really read this book.  I think you would really find it useful and a pretty fun read."  My usual response is something like, "Mm...hmm. Ok.  Sounds great."  I usually have MANY more books in my queue to be read before something about financial things would make it to the top of my list.  (Which is funny since I used to have a stockbroker's license.  Yes, my attention is other places now!)  But, a few weeks ago, I found out that one of the major topics at a conference I was attending would be economics.  Not wanting to feel completely in the dark about the topic, I asked my husband for a reading suggestion, and he gave me How the Economy Grows and Why it Crashes by Peter Schiff.

No, kidding, this book was really EASY! And INTERESTING!  For starters, it is filled with cartoons.  Oh, yes, it is!.  I can relate to some cartoons! Then, it is the story of the economy of a people told in allegory.  

      In the beginning, three people are on an island where fish is the only food.  They can live on one fish per day, but it takes an entire day to catch one fish.  Until, one day, one person decides to take a risk, and go without food for a day and build a net to catch more fish.  Then he has the choice to loan out his net or loan a fish so that the other men could also build nets.  

     As the allegory builds, Schiff creates a credit system on the island, develops island infrastructure, and businesses on the island besides catching fish, a banking system, and foreign trade with other islands.  Through the description of the economic development of this island, I learned about the American creation of a fiat currency, our dependence on foreign funds to support our way of life, and even the recent housing, credit, and banking crises.

      Schiff even uses silly fish-related names to stand for real people who have shaped our economy.  For example: Ben Barnacle is Schiff's allegorical character for the real-life fed chairman, Ben Bernanke.

    If all-things-financial intimidate you, but you would like to start understanding more, I would really recommend this as an easy place to start!