“You could read ten books on the subject and not glean as much information.” DAVID BACH, author ofthe New York Times bestseller The Automatic Mlionle dwi _ michael COP GurrU.S. $19.95 / Can. $21.95 / U.K. £12.99 Show us the money— and how it works! verybody’s talking about the economy, but how can you evaluate what they're saying? How can we, the people, understand what Wall Street or Washington know—orsay they know? Author Michael Goodwin asked himself the same questions and came up with a good answer: explore the development of economic thought, examine the reality of economic practices, and tell the story through the graphic medium in order to make it accessible. Inaword: Economia. ‘The narrator of this important graphic work is an Everyman of economies seeking sensible answers to the questions many people wonder about: » What's the difference between capitalism, socialism, and communism? * Does trickle-down economics work? + Is deficit spending necessary? + And are corporations people? Economix explains it all, from the beginnings of Western economic thought to economic failures, successes, anomalies, and future possibilities. Goodwin looks at how our modern economy has gone global and how it is affected by war, climate change, and resource limitations. It’s the essential, comprehensive guide to understanding the econ- omy, regardless of your political affiliation. Economix is a must-read for every citizen— whether you work on, wonder about, or occupy Wall Street!se He Good ira « weustPar evpan e.Burr paviD BACH # wIROOUCTON JOEL BAKAN i ewe oeneA aE A BRAMS COMICARTS » NEW YORKEditor: Sheila Keenan Book Design: Dan E, Burr and Sara Corbett ‘Managing Editor: Tamara Arellano Production Manager: Alison Gervais Library of Congress Cataloging-in-Publication Data Goodwin, Michael, 1966- Economix ; how and why our economy works (and doesn’t work) in words and pictures / Michael Goodwin, p-em. Includes bibliographical references and index. ISBN 978-0-8109-8839-2 (alk. paper) 1. Economies—Comic books, strips, ete. I. Title. HBI71.G62 2012 330—de23. 2011052119 ‘Text and illustrations copyright © 2012 Michael Goodwin, Foreword copyright © 2012 David Bach. Introduction copyright © 2012 Joel Bakan. Allrights reserved. Published in 2012 by Abrams ComicArts, an imprint of ABRAMS. All rights reserved. No portion of this book may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, mechanical, electronic, photocopying, recording, or otherwise, without written permission from the publisher. Abrams Comicarts is a registered trademark of Harry N. Abrams, Ine., registered in the U.S. Patent and Trademark Office. Printed and bound in the United States 10987654321 Abrams ComicArts books are available at special discounts when purchased in quantity for premiums and promotions as well as fundraising or educational editions can also be created to specification. For details, contact sales @abramsbooks.com or the address below. spek ABRAMS 115 West 18th Street New York, NY 10011 wwwatbramsbooks.com,CONTENTS Foreword... Introduction Preface... Eas The Invisible Hand (THE DISTANT PAST TO 1820)..+sseeeesssseseesesscceeenenseesssesseseaees 13, CHAPTER 2 Full Steam AN@ad cisso-is0s)....cccsecssecseeseen 43 poo The Money POW? ases-tot)....cccsccssecssecee 73 THINGS Fall Apart :srs-t045)...cccccccssscesteee 95 Poo Guns and Butter asss-rs66»... oa Lo The Era Of LIMItS ises-tos0)....cecceceesereoee 163 po The Revolt of the Rich asso-s000.....cc.:eee 197 The World TOdaYcsoorosnaniy..ssesseseeeseenee 251 Glossary Further Reading 95, Acknowledgments... 97 About the Authoi 98 About the Artist. Index...FOREWORD itting in the green room at NBC’s Today Show in New York City, preparing to do a segment on my new book Debt Free for Life, I met Charles Kochman, editorial director of Abrams ComicArts. Charlie asked if I would consider reviewing a new book they had coming out called Eeonomiz by Michael Goodwin. My first thought was, A graphic book on the economy—that sounds cool. But seriously? How in the world can you take a subject as complicated as the history of economics and explain it graphically? “Graphically” is really just another word for “adult comic book,” right? For that matter, ean you really make learning about the history of the economy easy and entertaining enough that people will want to read it? ‘As I was thinking about this, I met another Today Show guest, Jeff Kinney, author of the Diary ofa Wimpy Kid series, who was also published by Abrams. Kinney's books had single-handedly gotten my seven- year-old son, Jack, to love reading. I took a picture with Jeff, asked for his autograph for my son, and it hit me: Economézr could be a complete game changer. If you could write a book that explains the history of the economy and make that information approachable, millions could benefit! The more I thought about this, the more certain I became that Economie could help tens of millions—if it was any good. I left the Today Show still skeptical but also interested and excited about the potential of how a book like this could serve so many. Accouple of weeks later, Abrams sent Economic to my office to review. [had planned to flip through it, then come back to it later, In three hours I had read the entire book cover to cover. All I can say is that I wish fd had this book twenty-five years ago when I was graduating college. It’s simply phenomenal! Economix does what I have never seen done before: it breaks down the history of global economies in a concise, easy, and entertaining read, Let's face it: even if you love economies as I do, and you study this stuff, it can be difficult and often boring. Economix isn't boring; it’s the exact opposite, It’s eye-opening, exciting, and powerfully educational—and, most important, a fantastic, fast, and fun read. Economizis also a time-saver: you could read ten books on the subject and not glean this much information. Michael Goodwin has done an exhaustive study of economic history and then masterfully summarized and explained it. Add in Dan Burr, who did the most incredible job of illustrating theprose, and you've now got the ultimate fun crash course in the history of the economy. It’s almost not fair, when I think how lucky young people are to get this book in their hands. You'll get to benefit from this read without all the pain and suffering that the rest of us went through to learn this stuff. 'm jealous. But I am also truly delighted and honored to share this book and provide the foreword. Tan tell you for a fact that this book will be required reading for my two young boys, Jack and James. I have taken multiple economics courses in college and studied personal finance for over two decades, and I’ve simply never seen the history of economies explained this well. My sons will have a leg up on their friends by reading and understanding how economic issues affect them and how economic forces have shaped history and will impact their future. With the recent recession, we've learned that the economy affects us all. What happens in Greece in 2012 affects us on Main Street and Wall Street in the USA—but why? The Federal Reserve says interest rates will stay low until 2014, but what can that do to our deficit, job growth, housing, and on and on? How did the mortgage crisis really happen? Why did Lehman Brothers go bankrupt? Each year, each month, each day, something happens in the economy that impacts us. It is critical that more people understand the basis of how the economy works so that more people can provide intelligent input and actions. There is simply too much economic rhetoric today that is politically biased and media driven. What's needed is thoughtful discussion about what has worked and what hasn’t worked in the past. ‘More people need this information—and now more people can access it. The economy matters. That idea is not a political slogan but rather a lifeline of financial well-being. I have always said that the first economy you should worry about and focus on is your own economy. But the reality is that you do need to understand how the economy has worked in the past and how it’s working now. The more you understand the economy, the better you can manage your own economy—and I believe Eeonomix can help you do just that. truly loved this book, and I plan to pass it along to everyone who will listen. This book needs to be required reading in high schools and colleges—but the best place to start educating our young people is at home. $o buy this book, read it, and share it with your family. Go make your own economy bright and powerful—because it can be—and history proves it. Live and finish rich, David Bach DAVID BACH is the founder of FinishRich.com and the author of nine New York Times bestsellers, including Debt Free for Life; The Automatic Millionaire; and Start Late, Finish Rich.