How an Economy Grows and Why It Crashes

19
S H A R I N G   T H E   W E A L T H
But that image doesn’t hold water. Even if Able intends only 
to fi ll his own fi sh coffers, his greed, for lack of a better word, 
would provide a benefi t that would have otherwise been 
unavailable.
It’s important to note that Able does not need to make the loan. 
He has other options, including these four:  
1.  He simply might hold on to his fi sh for 
future use….This is the most secure 
option. He would be guaranteed to not 
have any losses, but of course his 
savings wouldn’t grow.
2.  He could simply indulge 
himself and consume his savings.
3.  He could build his own net rental 
company. He reckoned that if he 
consumed one of his reserve fi sh 
a day for two days, he could build 
two more nets.
He could then rent the 
extra nets to Baker and 
Charlie for half of a fi sh 
each day. With each 
of the two kicking in 
half of a fi sh every 
day to his net rental 
company, Able 
would have the one fi sh a day he needs to live, without 
ever having to go fi shing himself. Hello, early retirement!

---