How an Economy Grows and Why It Crashes

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Evidence of this change could be seen at Charlie Surfs, the 
venerable surfboard shop established by one of the island’s 
founders. 
After generations of manufacturing success, the company 
was moving in a new direction. Charlie’s descendants 
landed a big loan to vastly expand their surfi ng school 
operations. Twelve new gleaming campuses were built 
across the island. 
At the same time, the company struck a deal to manufacture 
its boards in Sinopia, paying off the foreign workers with 
Fish Reserve Notes, The higher-value activities of surfboard 
design and surfi ng instruction remained at home. 

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