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
The bottom line is that anything that leads to more fi sh 
catching (production) benefi ts the island. The more fi sh 
there are, the more possibilities there are for everybody to 
eat more, do something besides fi shing, or perhaps, 
do nothing at all.
S
ome may wonder what would happen if Able turns out to 
be a really greedy guy, who would use his new wealth just 
to get richer and richer.
Is this really a danger? If the only way to make his savings 
grow (without working himself) is to make it available to 
other members of the community, why would he hoard it?
Otherwise his wealth will stay the same or get smaller as 
he personally consumes it! The best thing about private 
capitalism is that it forces those who may only be motivated 
by personal gain to raise the living standards of others.
REALITY CHECK

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