How an Economy Grows and Why It Crashes

H O W   A N   E C O N O M Y   G R O W S   A N D   W H Y   I T   C R A S H E S
18
Charlie and Baker conceded the point. They realized that 
they were asking Able to take a risk for no personal benefi t. 
But the lure of extra fi sh was too strong. Before long they 
came up with a way to entice him into taking a chance.
They thought, they crunched the numbers, and fi nally a 
fi nancial idea was born!
Baker approached Able and said, 
“Let’s make a deal: For every 
fi sh you lend us, we’ll pay 
you back two. That’s a 100 
percent profi t. Where else are 
you gonna get a return like 
that on an island like this?”
Able is persuaded, “Now that 
interests me!” he said with no apparent irony.  
Able thought of the riches, “If I lend them two fi sh I’ll get 
back four.” I’ll be two fi sh richer without doing any work. 
I’ll be a fi sh tycoon!”
To some it may appear 
that Able has crossed a 
line. If this were a 
Hollywood movie 
he would start 
twirling his waxed 
mustache. He would 
be making money off 
the backs of others’ labor, 
drawing profi ts from their toil!  

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