How an Economy Grows and Why It Crashes



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how an economy grows

AUTHOR’S NOTE



xi
O
ver the past century or so, academics have presented 
mankind with spectacular scientifi c advancements in 
just about all fi elds of study...except one. 
Armed with a mastery of mathematics and physics, scientists 
sent a spacecraft hundreds of millions of miles to parachute 
to the surface of one of Saturn’s moons. But the practitioners 
of the “dismal” science of economics can’t point to a similar 
record of achievement. 
If NASA engineers had evidenced the same level of forecasting 
skill as our top economists, the Galileo mission would have 
had a very different outcome. Not only would the satellite 
have missed its orbit of Saturn, but in all likelihood the rocket 
would have turned downward on lift-off, bored though the 
Earth’s crust, and exploded somewhere deep in the magma.
In 2007 when the world was staring into the teeth of the 
biggest economic catastrophe in three generations, very few 
economists had any idea that there was any trouble lurking 
on the horizon. Three years into the mess, economists now 
offer remedies that strike most people as frankly ridiculous. 
We are told that we must go deeper into debt to fi x our 
INTRODUCTION



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