Article Image
News Link • Economy - Economics USA

How Saving Grows the Economy--Explained with Comics

• https://fee.org, by Dan Sanchez

Back in the 1980s, Irwin Schiff, the late anti-tax activist, political prisoner, and father of free-market pundit Peter Schiff, wrote a marvelous comic book titled How an Economy Grows and Why It Doesn't, which teaches economic principles through a light-hearted story.

The comic starts with three islanders—Able, Baker, and Charlie—who live off of fish, which they catch in the sea. They have no tools to aid them, so they must fish with their bare hands. Fish, to the islanders, is a consumers' good: something that is used to pursue their goals directly (in this case, the goals of satisfying hunger and not starving). But, fish can only be a consumers' good when it is ready for consumption. The fish do the islanders no good while they are still swimming in the sea. So the islanders must engage in production. They must produce the product of "fish on a plate," which is the true consumers' good.

Join us on our Social Networks:

 

Share this page with your friends on your favorite social network:


Purse.IO Save on All Amazon Purchases