Why is the US Economy Really in a State of Crisis?

"Whatever Happened to Penny Candy?" is a short, concise book covering a lot of ground at a basic level that anyone who can read should be able to comprehend.

As mentioned in the preface, it talks about the origin and history of money, the origin and history of the dollar, the business cycle, inflation, recession, depression, foreign currencies, governments and their effects on economic behavior, and various other related topics.

Written as if it were a series of letters to the authors nephew, Richard Maybury starts by explaining what coins and dollars are and then incrementally explains economics from the perspective of the Austrian school of economics.

He shows that our money is not, in any true sense, actual money, explains how it is that we have come to use a fiat currency in place of money, covers what has happened when previous governments have debased the money supplies of their countries, and shows that the problems that we are having as a country are clearly the result of corruption in our legal systems.

The knowledge contained within this simple book is contrary to the vast majority of what is portrayed by media, government, and schools where economics is concerned, but written with a clarity that is difficult to refute.

If you find yourself confused by what is going on with the economy, what the real effect of the recently passed "economic stimulus package" will be, or why we continue to go through boom and bust cycles, this book can clear up that confusion quite nicely.

The knowledge contained within "Whatever happened to penny candy?" also shows not only why penny candy no longer costs a penny, but why even though we earn a lot more than our fathers did when they were our age we are actually making less.

In a nutshell, "Whatever Happened to Penny Candy?" denotes that:

1. People vote for politicians who offer them free lunches.

2. Politicians tax people to give them the things they have promised, fund public works projects, carry out wars, and provide welfare programs.

3. When raising taxes would lead to revolts, those in government resort to counterfeiting and debasing the currency to pay for the things they want.

4. Once politicians get scared of inflation, they stop counterfeiting until they become scared of unemployment, then continuing to alternate between them in the hope of avoiding a prolonged depression.

5. This tampering with the money supply is the source of the economic problems that we are having.

6. The root of the problem has nothing to do with money and everything to do with the way we elect politicians and our system of law. Because we choose to elect the politicians who promise to provide us with what we want, but refuse to directly pay for such things, we consistently get only those who are willing to continue to debase our money supply. This causes us to continue to become poorer as time goes by and, if continued, will eventually lead to major problems for all of us as a society.

7. We can turn things around if we stop trying to vote ourselves a free lunch and refuse to continue electing politicians who offer us such.

Overall, I would have to say that this book offers the best explanation of economics that I have ever seen within a single book. If everyone picked up a copy, read it, and gave it the consideration that I think it deserves, we could enact real change as a people. However, if we continue to hold onto the idea that we can simply vote ourselves richer, we will likely go the way of every other country in history that has tried to do that same.

References:
Maybury, Richard J., "Whatever Happened to Penny Candy? Fifth Edition", Bluestocking Press