#reading# #microeconomics#
📚《小岛经济学》https://book.douban.com/subject/26985299/

作者彼得希夫是坚定的自由市场支持者，全书的观点都从这个角度上有一定的激进程度。比如主张政府不应该设置最低工资和工作福利等（因为这样可以开放工资符合市场水平的低廉工作岗位）。

这本书用了比较简单生动的寓言故事讲了 生产、消费、技术发展带来的生产效率提升、为行业细分和多样化提供了机会空间、货币、信贷。最终是要讲：美国的通货膨胀（印的钱太多了，远超出生产能力和储蓄）、美元的债务危机（通过全球化市场转移了一波，但是债主开始要钱，要么拒绝还债要么通货膨胀、货币贬值）。

读完的感想

美国的政治选举要求政客通过提供显而易见的经济改善且不伤害任何群体的利益，获取选民投票成功竞选。但是事实上，要想显而易见的经济改善除非
a. 内部，有生产力革新，生产效率快速提升（少见。通常通过技术，很难通过政客）；
b. 内部，就已有产能和财富调整分配关系，比如富人重税等。（很难。通常参加竞选的总统由富人支持。富人是政客背后老板）；
c. 外部，通过从别的地方捞一笔，转移到国内，整体增加福利。（可以。一般是特殊的外部机会。如果是主动寻求，主要通过战争，有很高的成本且胜率不定。风险较大）。所以，美国人想出来的办法是：美联储、美元作为储备货币、量化宽松（大量印钱）；
经济学是关于在客观约束上做选择的学科。而政治却没有人愿意接受客观约束的痛苦（要么降低消费、要么埋头苦干提高生产力）。

书中的一些观点摘录

1. 我们的消费不能超过产能，我们的借款不能超过存款，至少不能长期这样。
2. 为了恢复经济平衡，经济衰退不是必需的，却是必要的。In order to restore economic equilibrium, an economic recession is not indispensable, but it is necessary.
3. 通货膨胀不过是把财富从以某种货币储蓄的人手中转移到以同种货币负债的人那里。如果遇到恶性通货膨胀，存款就会变得一文不值，负债却一笔勾销（拥有固定资产的人情况会好一些，因为与以货币形式储蓄不同，固定资产的账面价值会暴涨。）

GPT-4 summary on this book

“How an Economy Grows and Why lt Crashes” is an illustrative book written by Peter D. Schiffand Andrew J. Schiff The book uses humor and easy-to-understand illustrations to explain complex concepts of economics. Here is a brief summary:
The story begins with a simple economy based on fishing on an isolated island. The book then gradually introduces more complex economic concepts such as credit, inflation, and government regulation. The narrative is designed to illustrate how these concepts play out ina real-world context and how they can lead to economic growth or a financial crash.
Basic Economy: lt starts with a simple economy where three men live on an island ancsurvive by catching fish. One of them comes up with the idea to build a net to catch fishmore efficiently, which introduces the concept of capital goods and savings.
Introduction of Credit: One of the men lends his savings (the net) to another man who wants to catch more fish, this introduces the concept of credit and interest rates.
Government Intervention and lnflation: The book then introduces a government that starts controlling the economy, introducing taxes and creating money out of thin air. This leads to inflation and a misallocation of resources.
Economic Crash: The government’s actions eventually lead to an economic crash. The book explains the reasons behind the crash, which include excessive government intervention, bad loans, and inflation.
Throughout the book, the authors use this simple allegorical tale to explain how an economy grows and why it crashes. The book is a critique of modern economic policies, particularly those that involve significant government intervention
The authors, Peter D. Schiff and Andrew J. Schiff, are well-known for their** libertarian and Austrian School **of Economics viewpoints, and their ideas strongly influence the book. The authors argue for less government intervention and more free-market policies as a way top romote sustainable economic growth.

和GPT-4讨论本书

• Poe 链接：https://poe.com/s/e7tg0eZ1Kc5dgIXyF3x9
• Anqi: write an book review on this book, from a totally supporting stand of the authors’ viewpoint, supplement the key points with recent research and data

GPT-4: Title: A Wholehearted Endorsement of “How an Economy Grows and Why It Crashes”
In today’s rapidly changing economic landscape, Peter D. Schiff and Andrew J. Schiff’s “How an Economy Grows and Why It Crashes” is an essential and timely read. As a strong supporter of the authors’ viewpoint, I find the book’s allegorical approach to illustrating complex economic concepts both engaging and enlightening. Furthermore, recent research and data lend credence to the key points presented by the authors, making a compelling case for their arguments.
The book’s central theme revolves around the importance of savings and investment as the primary drivers of economic growth. In line with this, a study by the National Bureau of Economic Research (NBER) has shown that countries with higher savings rates tend to experience faster economic growth over the long term. This empirically supports the authors’ assertion that a strong foundation of savings and investment is crucial for a healthy economy.
The authors also argue that excessive government intervention in the economy can lead to financial bubbles and crashes, a viewpoint that has gained increasing support in recent years. For instance, a report by the International Monetary Fund (IMF) highlights that in the years leading up to the 2008 financial crisis, lax regulation and government policies contributed to the housing bubble in the United States. This reinforces the authors’ claim that government intervention often results in unsustainable economic growth and financial instability.
Moreover, the book’s advocacy for a laissez-faire approach to economic policy is supported by research demonstrating the benefits of free markets and minimal government intervention. A study by the World Bank suggests that countries with freer markets and less government interference tend to have higher levels of economic growth, innovation, and overall prosperity. This bolsters the authors’ argument that a laissez-faire approach can lead to more efficient resource allocation and greater economic success.
In conclusion, “How an Economy Grows and Why It Crashes” is a must-read for anyone interested in understanding the fundamental principles of economic growth and the pitfalls of excessive government intervention. The authors’ viewpoints are not only engaging and insightful but also supported by recent research and data. By emphasizing the importance of savings, investment, and minimal government interference, this book provides a valuable roadmap for fostering sustainable economic growth and preventing financial crises in the future.

• Anqi: What are some of the criticisms of the authors’ viewpoints?

GPT-4: While “How an Economy Grows and Why It Crashes” by Peter D. Schiff and Andrew J. Schiff offers an engaging allegory to explain complex economic concepts, some critics argue that the authors’ viewpoints are overly simplistic or biased in favor of certain economic theories. Here are some common criticisms of the authors’ viewpoints:

1. Overemphasis on laissez-faire economics: Critics argue that the authors’ strong support for laissez-faire economic policies neglects the potential benefits of government intervention in certain areas, such as providing public goods, protecting consumers, and maintaining a social safety net. They contend that a completely unregulated market can lead to income inequality, environmental degradation, and market failures.
2. Disregard for the role of demand: The authors place considerable emphasis on the importance of savings and investment for economic growth. However, critics argue that this perspective downplays the role of demand in driving economic growth. They suggest that it is essential to strike a balance between savings and consumption, as insufficient demand can lead to underutilized resources and economic stagnation.
3. Simplistic approach to financial crises: The book portrays excessive government intervention as the primary cause of financial crises. Critics argue that this is an oversimplification, as various factors, including financial market dynamics, global economic imbalances, and private sector behavior, can contribute to economic downturns. They argue that a more nuanced understanding of financial crises is necessary to prevent future economic instability.
4. Lack of empirical evidence: Some critics point out that the allegorical nature of the book limits the presentation of empirical evidence to support the authors’ claims. They argue that a more robust analysis of real-world data would better inform readers about the validity of the authors’ arguments and the complexities of economic growth and financial crises.
5. Potential ideological bias: Critics suggest that the authors’ viewpoints may be influenced by their ideological leanings towards free-market capitalism and libertarianism. They argue that this bias may lead to a one-sided presentation of economic theory and policy, overlooking the merits of alternative perspectives.

• Anqi: What are some examples of government intervention that could benefit the economy?

Government intervention can play a crucial role in addressing market failures, promoting social welfare, and fostering economic growth. Here are some examples of government interventions that could benefit the economy:

1. Provision of public goods: Governments can fund and provide public goods, such as infrastructure, education, and national defense, which are essential for a well-functioning society and economy. These goods are typically non-excludable and non-rivalrous, meaning that private markets may not provide them efficiently due to the free-rider problem.
2. Regulation of externalities: Governments can implement regulations to address negative externalities, such as pollution or overuse of natural resources. Examples include environmental regulations, cap-and-trade systems, and carbon taxes. These interventions can help internalize the social costs of economic activities and promote more sustainable growth.
3. Consumer protection: Governments can establish rules and regulations to protect consumers from unfair or deceptive business practices, such as false advertising, unsafe products, or predatory lending. These measures help maintain consumer trust in the market and promote fair competition.
4. Redistribution of income: Governments can use tax and transfer systems to redistribute income and reduce inequality. Progressive taxation, unemployment benefits, and social security programs can help provide a social safety net for vulnerable populations, ensuring a more equitable distribution of resources and opportunities.
5. Stabilization policies: Governments can use fiscal and monetary policies to stabilize the economy during economic fluctuations. For example, during a recession, governments can implement expansionary fiscal policies (e.g., increased government spending or tax cuts) to stimulate aggregate demand and promote economic recovery. Central banks can use monetary policies, such as interest rate adjustments or quantitative easing, to influence money supply and credit conditions to maintain price stability and support economic growth.
6. Support for innovation: Governments can invest in research and development, provide grants or tax incentives for innovation, and fund public research institutions to promote technological advancements and productivity growth. These interventions can help create a more competitive and dynamic economy in the long run.
7. Promotion of fair competition: Governments can enforce antitrust laws and competition policies to prevent monopolies, cartels, and other anti-competitive practices, ensuring that markets remain competitive and efficient.

While government intervention can bring about positive outcomes, it is essential to strike a balance between intervention and allowing market forces to operate, as excessive intervention can lead to inefficiencies, distortions, and unintended consequences.