Written by one of the foremost experts on the business cycle, this is a compelling and engaging explanation of how and why the economic downturn of 2007 became the Great Recession of 2008 and 2009. Author Howard Sherman explores the root causes of the cycle of boom and bust of the economy, focusing on the 2008 financial crisis and the Great Recession of 2008-2009. He makes a powerful argument that recessions and the resulting painful involuntary unemployment are inherent in capitalism itself. Sherman clearly illustrates the mechanisms of business cycles, and he provides a thoughtful alternative that would rein in their destructive effects.
Table of Contents
Preface and Acknowledgments; Part I. Problems of the Roller Coaster Economy; 1. Boom, Bust, and Misery: The Curse of Capitalism; 2. History of the Roller Coaster; 3. Bush, Boom, and Bust; Part II. Diagnosing the Roller Coaster; 4. The Income Gap; 5. The Consumption Gap; 6. The Housing Crisis; 7. Investment and Profit; 8. The Credit Balloon and the Financial Crisis; 9. Government Spending and Taxes; 10. The Trade Gap: How Boom and Bust Spread Around the Globe; Part III. Diagnosis and Cure of the Roller Coaster Economy; 11. How Violent Profit Swings Cause the Roller Coaster; 12. The Public Option for Health and Employment: How Democratization Can End the Busines Cycle; References; Index.