The cyclical nature of market economies is as old as the markets themselves. In a free market system, financial downturns inevitably accompany economic prosperity. So, while it is helpful to understand what causes these downturns, the more important questions to consider are “What makes the `boom and bust’ cycle so predictable?” and “What are the ethical responsibilities of the citizens of a free market economy?” In Boom & Bust: Financial Cycles and Human Prosperity, Alex J. Pollock argues that while economic downturns can be frightening and difficult, people living in free market economies enjoy greater health, better access to basic necessities, better education, and have more choices and wider horizons than people at any other point in history. This reality would not exist in the absence of financial cycles. This book explains why.
