How an Economy Grows and Why It Crashes

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C H A P T E R
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I
n the beginning, the island had no government…
compensation at least for the limited diet. Able, Baker 
and Charlie were old friends and worked out disputes 
amicably. But as simple societies grow more complex, 
there inevitably arises the need for some central 
authority. 
With more people on the island, misunderstandings 
multiplied. When words failed to settle the matter, 
spears were often employed to bring about a resolution.  
With no organized mutual defense apparatus, 
occasionally gangs of fi sh fi lchers would go on a 
rampage and make life miserable for the islanders.
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