Home > Store

Seeds of Destruction: Why the Path to Economic Ruin Runs Through Washington, and How to Reclaim American Properity

Register your product to gain access to bonus material or receive a coupon.

Seeds of Destruction: Why the Path to Economic Ruin Runs Through Washington, and How to Reclaim American Properity

eBook (Watermarked)

  • Your Price: $21.59
  • List Price: $26.99
  • Includes EPUB, MOBI, and PDF
  • About eBook Formats
  • This eBook includes the following formats, accessible from your Account page after purchase:

    ePub EPUB The open industry format known for its reflowable content and usability on supported mobile devices.

    MOBI MOBI The eBook format compatible with the Amazon Kindle and Amazon Kindle applications.

    Adobe Reader PDF The popular standard, used most often with the free Adobe® Reader® software.

    This eBook requires no passwords or activation to read. We customize your eBook by discreetly watermarking it with your name, making it uniquely yours.


  • Copyright 2015
  • Edition: 1st
  • eBook (Watermarked)
  • ISBN-10: 0-13-408492-6
  • ISBN-13: 978-0-13-408492-3

If you think the current administration is mismanaging the economy straight towards disaster, you're not alone: so do two top economists from both sides of the political aisle. In Seeds of Destruction, former Bush chief White House economist R. Glenn Hubbard and well-known CNBC commentator Peter Navarro explain why current economic policy is a catastrophic failure. Then, they offer a comprehensive, bipartisan blueprint for reversing the decline of America's currency, manufacturing base, and standard of living - setting the stage for the epic policy debates that will precede the 2010 elections. Hubbard and Navarro begin with a "checklist" of what it takes to be a prosperous, democratic nation - and show why Obama's policies (some of Bush's also) fail on every level. They explain why the activist Federal Reserve and Obama fiscal stimulus policies are doing far more harm than good... why we must restore the U.S. manufacturing base, whatever China says about it... how to transform tax policy into an engine of growth and innovation... how to apply the "tough love" needed to save Social Security, Medicare, and Medicaid... why America must resign the job of world policeman... how market-based solutions can finally deliver real energy independence... how to reform our antique financial regulatory system without imposing heavy-handed rules that cause even more trouble.

Sample Content

Table of Contents

Foreword . . . xii

About the Authors . . . xviii

Introduction: The White House Plants Its Seeds of Destruction . . . 1

Part I Getting from Seeds of Destruction to Seeds of Prosperity . . . 7

Chapter 1 America’s Four Growth Drivers Stall and Our Economy Stagnates . . . 9

The GDP Growth Drivers Equation . . . 11

GDP Growth Has Been Well Below Potential Growth . . . 12

The American Consumer’s Roller Coaster . . . 15

Where Has All the Business Investment Gone?. . . 19

There’s Too Much Government Spending . . . 21

Net Exports Are a Net Negative . . . 25

Conclusion . . . 27

Chapter 2 How to Lift the American Economy with the Ten Levers of Growth . . . 29

Lever One: Free Markets Free of Corruption and Monopoly Best Promote Growth . . . 29

Lever Two: Free and Fair Trade Helps All Countries Grow . . . 31

Lever Three: Entrepreneurship Is the Linchpin of Long-Term Growth . . . 33

Lever Four: Without Savings, There Can Be No Investment and Growth . . . 34

Lever Five: Without a Stable Banking System and Strong Financial Markets, Savings Can’t Be Transformed into Investment . . . 35

Lever Six: Innovation and Technological Change Matter More Than Machines and Workers . . . 36

Lever Seven: “Human Capital” Matters as Much as Physical Capital . . . 38

Lever Eight: Oil Price Shocks Stunt the Growth of Oil-Import-Dependent Nations . . . 39

Lever Nine: A Healthy Nation Is a Productive and Prosperous Nation . . . 40

Lever Ten: A Solid Manufacturing Base Makes for a Strong Economy . . . 41

Part II Fixing America’s Destructive Duo: Monetary and Fiscal Policy . . . 47

Chapter 3 Why an Easy-Money Street Is a Dead End . . . 49

The Return of Fed Activism . . . 52

The Maestro or a Bubble Maker? . . . 53

President Obama Crosses the Activist Rubicon . . . 54

The Road to American Prosperity Cannot Be Paved with a Cheap Dollar . . . 57

Where Have You Gone, William McChesney Martin? . . . 60

Chapter 4 Why You Can’t Stimulate Your Way to Prosperity . . . 63

From John Maynard Keynes to the Kennedy Tax Cut Revolution . . . 66

Part III Getting the “Big Three” Right: Tax, Trade, and Energy Policy . . . 83

Chapter 5 Why Raising Taxes Lowers America’s Growth Rate . . . 85

Ideological Gridlock Over Broad-based Tax Reform . . . 88

From a “Class Tax” to a “Mass Tax” . . . 91

From Double Taxation to Double Whammies . . . 93

Income Tax Evolution or Consumption Tax Revolution? . . . 95

Meeting on the Middle Ground . . . 97

Chapter 6 Why the Best “Jobs Program” May Be Trade Reform . . . 101

The 2000s: A Decade of Large and Chronic Trade Deficits . . . 103

America’s Trade Deficits Cause Inflation and Loss of Political Sovereignty. . . 104

The World’s Poster Child for the Modern Protectionist-Mercantilist State . . . 104

China’s Great Wall of Protectionism . . . 106

China’s Eighteenth Century Mercantilism . . . 111

Chapter 7 Why America’s Foreign Oil Addiction Stunts Our Growth . . . 125

How Does America’s Oil Import Addiction Harm Our Economy? Let Us Count the Ways . . . 128

Risky Business . . . 130

Moving Toward Forging a Political Consensus on Reducing Oil Import Dependency. . . 132

The Smart Path Embraces Both Soft- and Hard-Path Options . . . 133

The Folly of Energy Independence Redux . . . 136

Achieving a Targeted Reduction in Oil Dependence . . . 137

Why This Proposal Has Economic and Political Merit . . . 140

The Thorny Politics of Oil Import Fees . . . 142

Part IV Good Politics Usually Makes for Bad Economics . . . 147

Chapter 8 Cutting the Gordian Knot of Entitlements . . . 149

The Imperative of an Economic Rather Than Accounting Solution . . . 151

Why Social Security Is Easier to Fix Than Medicare and Medicaid . . . 153

Saving Social Security in Two Easy Pieces . . . 154

Closing the Social Security Spending Gap: What Won’t Work . . . 158

Closing the Social Security Spending Gap: What Can Work . . . 161

Forging a Political Consensus . . . 165

Saving Medicare and Medicaid: Mission Impossible? . . . 167

A Flexible and Focused Way Forward . . . 168

Chapter 9 Why ObamaCare Makes Our Economy Sick . . . 173

The Big Health Care Picture . . . 174

Are We Getting What We Are Paying For? . . . 176

ObamaCare Puts the Coverage Cart Before the Cost Horse . . . 178

ObamaCare Provides a Far-Too-Sweet Entitlement . . . 180

Truth or Consequences . . . 181

ObamaCare and the Law of Unintended Consequences . . . 183

Toward a More Market-Driven Health Care System . . . 184

What Can Be Done? . . . 191

Conclusion. . . . 192

Part V The American Economy at a Crossroads . . . 197

Chapter 10 How to Prevent Another Financial Crisis–and Housing Bubble. . . 199

#1: Easy Money . . . 201

#2: Not Enough “Skin in the Game” for American Home Buyers . . . 202

#3: Not Enough “Skin in the Game” for Mortgage Lenders . . . 203

#4: Way-Too-Exotic Mortgages for Borrowers . . . 205

#5: The Mortgage-Backed Securities Meltdown . . . 208

#6: The Collateralized Debt Obligations Credit Rating Debacle . . . 211

#7: A Flawed Insurance Market: Credit Default Swaps . . . 213

#8: Inflexible Bank Capital . . . 216

#9: Too Big to Fail: Last Rites for Financial Dinosaurs . . . 218

#10: A Fragmented and Sectoral Model of Regulation . . . 219

#11: Subsidies for Nonproductive Investment, Taxes for Productive Investment . . . 221

The New Law as the End of the Beginning . . . 222

Chapter 11 How to Implement Our Seeds of Prosperity Policy Blueprint . . . 229

Our Seeds of Destruction Problem . . . 230

Our Seeds of Prosperity Solution . . . 231

Conclusion . . . 248

Index . . . 251

Additional Bonus Material for eVersion Only:

An Interview with Glenn Hubbard About His Time in the White House . . . 269


Submit Errata

More Information

InformIT Promotional Mailings & Special Offers

I would like to receive exclusive offers and hear about products from InformIT and its family of brands. I can unsubscribe at any time.


Pearson Education, Inc., 221 River Street, Hoboken, New Jersey 07030, (Pearson) presents this site to provide information about products and services that can be purchased through this site.

This privacy notice provides an overview of our commitment to privacy and describes how we collect, protect, use and share personal information collected through this site. Please note that other Pearson websites and online products and services have their own separate privacy policies.

Collection and Use of Information

To conduct business and deliver products and services, Pearson collects and uses personal information in several ways in connection with this site, including:

Questions and Inquiries

For inquiries and questions, we collect the inquiry or question, together with name, contact details (email address, phone number and mailing address) and any other additional information voluntarily submitted to us through a Contact Us form or an email. We use this information to address the inquiry and respond to the question.

Online Store

For orders and purchases placed through our online store on this site, we collect order details, name, institution name and address (if applicable), email address, phone number, shipping and billing addresses, credit/debit card information, shipping options and any instructions. We use this information to complete transactions, fulfill orders, communicate with individuals placing orders or visiting the online store, and for related purposes.


Pearson may offer opportunities to provide feedback or participate in surveys, including surveys evaluating Pearson products, services or sites. Participation is voluntary. Pearson collects information requested in the survey questions and uses the information to evaluate, support, maintain and improve products, services or sites, develop new products and services, conduct educational research and for other purposes specified in the survey.

Contests and Drawings

Occasionally, we may sponsor a contest or drawing. Participation is optional. Pearson collects name, contact information and other information specified on the entry form for the contest or drawing to conduct the contest or drawing. Pearson may collect additional personal information from the winners of a contest or drawing in order to award the prize and for tax reporting purposes, as required by law.


If you have elected to receive email newsletters or promotional mailings and special offers but want to unsubscribe, simply email information@informit.com.

Service Announcements

On rare occasions it is necessary to send out a strictly service related announcement. For instance, if our service is temporarily suspended for maintenance we might send users an email. Generally, users may not opt-out of these communications, though they can deactivate their account information. However, these communications are not promotional in nature.

Customer Service

We communicate with users on a regular basis to provide requested services and in regard to issues relating to their account we reply via email or phone in accordance with the users' wishes when a user submits their information through our Contact Us form.

Other Collection and Use of Information

Application and System Logs

Pearson automatically collects log data to help ensure the delivery, availability and security of this site. Log data may include technical information about how a user or visitor connected to this site, such as browser type, type of computer/device, operating system, internet service provider and IP address. We use this information for support purposes and to monitor the health of the site, identify problems, improve service, detect unauthorized access and fraudulent activity, prevent and respond to security incidents and appropriately scale computing resources.

Web Analytics

Pearson may use third party web trend analytical services, including Google Analytics, to collect visitor information, such as IP addresses, browser types, referring pages, pages visited and time spent on a particular site. While these analytical services collect and report information on an anonymous basis, they may use cookies to gather web trend information. The information gathered may enable Pearson (but not the third party web trend services) to link information with application and system log data. Pearson uses this information for system administration and to identify problems, improve service, detect unauthorized access and fraudulent activity, prevent and respond to security incidents, appropriately scale computing resources and otherwise support and deliver this site and its services.

Cookies and Related Technologies

This site uses cookies and similar technologies to personalize content, measure traffic patterns, control security, track use and access of information on this site, and provide interest-based messages and advertising. Users can manage and block the use of cookies through their browser. Disabling or blocking certain cookies may limit the functionality of this site.

Do Not Track

This site currently does not respond to Do Not Track signals.


Pearson uses appropriate physical, administrative and technical security measures to protect personal information from unauthorized access, use and disclosure.


This site is not directed to children under the age of 13.


Pearson may send or direct marketing communications to users, provided that

  • Pearson will not use personal information collected or processed as a K-12 school service provider for the purpose of directed or targeted advertising.
  • Such marketing is consistent with applicable law and Pearson's legal obligations.
  • Pearson will not knowingly direct or send marketing communications to an individual who has expressed a preference not to receive marketing.
  • Where required by applicable law, express or implied consent to marketing exists and has not been withdrawn.

Pearson may provide personal information to a third party service provider on a restricted basis to provide marketing solely on behalf of Pearson or an affiliate or customer for whom Pearson is a service provider. Marketing preferences may be changed at any time.

Correcting/Updating Personal Information

If a user's personally identifiable information changes (such as your postal address or email address), we provide a way to correct or update that user's personal data provided to us. This can be done on the Account page. If a user no longer desires our service and desires to delete his or her account, please contact us at customer-service@informit.com and we will process the deletion of a user's account.


Users can always make an informed choice as to whether they should proceed with certain services offered by InformIT. If you choose to remove yourself from our mailing list(s) simply visit the following page and uncheck any communication you no longer want to receive: www.informit.com/u.aspx.

Sale of Personal Information

Pearson does not rent or sell personal information in exchange for any payment of money.

While Pearson does not sell personal information, as defined in Nevada law, Nevada residents may email a request for no sale of their personal information to NevadaDesignatedRequest@pearson.com.

Supplemental Privacy Statement for California Residents

California residents should read our Supplemental privacy statement for California residents in conjunction with this Privacy Notice. The Supplemental privacy statement for California residents explains Pearson's commitment to comply with California law and applies to personal information of California residents collected in connection with this site and the Services.

Sharing and Disclosure

Pearson may disclose personal information, as follows:

  • As required by law.
  • With the consent of the individual (or their parent, if the individual is a minor)
  • In response to a subpoena, court order or legal process, to the extent permitted or required by law
  • To protect the security and safety of individuals, data, assets and systems, consistent with applicable law
  • In connection the sale, joint venture or other transfer of some or all of its company or assets, subject to the provisions of this Privacy Notice
  • To investigate or address actual or suspected fraud or other illegal activities
  • To exercise its legal rights, including enforcement of the Terms of Use for this site or another contract
  • To affiliated Pearson companies and other companies and organizations who perform work for Pearson and are obligated to protect the privacy of personal information consistent with this Privacy Notice
  • To a school, organization, company or government agency, where Pearson collects or processes the personal information in a school setting or on behalf of such organization, company or government agency.


This web site contains links to other sites. Please be aware that we are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of each and every web site that collects Personal Information. This privacy statement applies solely to information collected by this web site.

Requests and Contact

Please contact us about this Privacy Notice or if you have any requests or questions relating to the privacy of your personal information.

Changes to this Privacy Notice

We may revise this Privacy Notice through an updated posting. We will identify the effective date of the revision in the posting. Often, updates are made to provide greater clarity or to comply with changes in regulatory requirements. If the updates involve material changes to the collection, protection, use or disclosure of Personal Information, Pearson will provide notice of the change through a conspicuous notice on this site or other appropriate way. Continued use of the site after the effective date of a posted revision evidences acceptance. Please contact us if you have questions or concerns about the Privacy Notice or any objection to any revisions.

Last Update: November 17, 2020