Contents
Contents
Copyright © 2012 by Leonard Wolfe. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.
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ISBN: 978-1-118-11806-1 (pbk); ISBN 978-1-118-21899-0 (ebk); ISBN 978-1-118-21900-3 (ebk); ISBN 978-1-118-21901-0 (ebk)
WHAT THIS BOOK IS ABOUT
Given that you were drawn to this book, chances are you are bright, educated, and intellectually curious. And like most bright, educated people you probably know very little about economics.
Unfortunately, few of us have much of a grip on economics, even when we are well-informed on other matters. But economic literacy is vital to making sense of the world we live in. We have witnessed bewildering turmoil in the economy and the deepest economic decline since the 1930s. We have been introduced to gobbledygook terms like collateralized debt obligations and credit default swaps. We have been confounded by subprime mortgage defaults, too-big-to-fail financial institutions, toxic assets, and economic collapse in countries we never paid much attention to before. A “haircut” is no longer just something you get at the barbershop, but also a loss on a bad loan.
This book aims to bring you up to speed, in a way that entertains while it informs. Don’t let the cartoons fool you into thinking this book is frivolous. The information is solid. We’ve collected many of the most frequently asked questions—plus some you haven’t thought of—on the subject of economics. Our topics range from the beginnings of money, to what makes economies grow, to whether Social Security will survive, to the benefits and costs of globalization. No question, in our view, is too dumb to ask and no answer should be too hard to understand. We’ve tried to provide answers that are as untechnical and jargon-free as possible without shortchanging you or insulting your intelligence.
Reading this book won’t make you a candidate for a Nobel Prize, but it will make you more comfortable with many of the ideas that underlie today’s important economic issues.
Lee Smith served as a senior writer and member of the Board of Editors of Fortune for 20 years and was its Bureau Chief both in Washington and in Tokyo, where his articles won citations for excellence from the Overseas Press Club of America. Prior to Fortune, he was a state capital correspondent for the Associated Press and a staff writer for Newsweek. Other publications for which he has written include Time and U.S. News & World Report.
Roy Doty is an internationally renowned illustrator whose work has appeared in the New York Times, Fortune, Newsweek, BusinessWeek, Sports Illustrated, and Golf Digest. He has written or co-authored 29 books, illustrated more than 160, and produced advertising and promotional work for many corporations in the United States and abroad. He has been named “Illustrator of the Year” six times by the National Cartoonist Society, and at its 2011 annual convention he received the Gold Key award and was inducted into the Cartoon Hall of Fame, becoming only the 13th member to be so honored in 65 years.
Leonard Wolfe spent more than 20 years at Time Inc. as an art director. He designed many of Time-Life Books’ most successful series, was Associate Art Director of Fortune, founding art director of Time Inc.’s science magazine Discover, and Promotion Art Director of Time magazine. Following his career at Time Inc., he founded a corporate communications company that produced annual reports and corporate literature for Perrier, GE, Time Warner, ExxonMobil, Reader’s Digest, BusinessWeek, and the Wall Street Journal, among many others.
Richard Warner has led a distinguished career as an art director and educator. He was Art Director of Sports Illustrated following his early years as a professor of design at Southern Methodist University. Most recently, he has been involved in corporate design, producing editorial and promotion materials for GE, ExxonMobil, Time Inc., GM, and BestFoods.
Stephen Buckles has enjoyed a distinguished career as a university professor, author, and leader of many respected professional organizations. A specialist in economics education, he has received numerous awards for his contributions to that field. He has been a board member of the Journal of Economics Education, economics editor of the Business Journal, President of the National Council on Economic Education, and Chair of the Individual Investors Advisory Committee of the New York Stock Exchange. He currently teaches economics at Vanderbilt University.
Barry Meinerth served as a Senior Vice President at Time Inc., responsible for printing and fulfillment of the company’s books and magazines throughout the world. Prior to that, he was Business Manager of both Time International and Discover magazines, Circulation Director of Time International, and Production Director of Fortune.
ACKNOWLEDGMENTS
Creating this book has been both a pleasure and an education in itself. And like any other worthwhile project, it has required the skill, talent, and experience of a number of dedicated individuals who saw the book's promise from the very beginning and were willing to devote many hours to making it the informative, inviting, and entertaining book it has become.
It began with a core staff of former colleagues from Time Inc. and soon grew to include other accomplished members with equally impressive backgrounds. Together they brought a combined wealth of experience, knowledge, and talent to create a unique view of a subject that for many has often seemed a formidable and intimidating one.
Credit belongs to a long list of people, but foremost among them are Roy Doty, Lee Smith, Stephen Buckles, and Richard Warner.
Roy has always managed to take complicated issues and ideas, condense their messages, and present them in a charming and delightful way, and he has done so here with cartoons that both inform and entertain.
Lee's ability to write clearly, concisely, and with an easygoing style makes even the most arcane subject matter come alive in the most interesting way imaginable. Steve's impressive background in economics education has proven invaluable, and the wealth of knowledge that he has brought to the book makes it one whose substance and content one can count on with confidence.
Richard's elegant format design sets the stage for the beautiful visual presentation that is apparent with each turn of the page.
Thanks, too, to Barry Meinerth, whose business acumen has been invaluable. To Marisa Gentile Raffio, whose unruffled professional manner under sometimes trying conditions made the production of the book far easier than it might have been and who has been a pleasure to work with. And to Ruth Wolfe, whose talent and experience in copyediting and proofreading played an important part in assuring the book's conciseness and clarity.
Special thanks, too, to Caroline Gallagher Donnelly, who was involved in the book’s early planning and development. And additional thanks to former colleagues at Fortune, William Rukeyser and Al Ehrbar, as well as to Michele Kalishman, Socrates Nicholas, Greg Rogers, Steve Rogers, and others too many to mention here.
To all of you, thanks for an exceptional job well done.
Leonard Wolfe