How an Economy Grows and Why It Crashes

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C H A P T E R
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T
he same economic rules that operate in a simple 
economic society also apply to a more complicated one.…
Able’s initial willingness to create capital through his 
own personal sacrifi ce benefi ted the other islanders. As 
a result of his prudent lending program, the islanders 
built many hand nets, and then capitalized on the 
increased productivity to fund much more effi cient fi sh-
catching machines. In addition to allowing a better diet, 
more fl attering attire, and easier transport, the increased 
productivity gave rise to leisure time and a burgeoning 
surfi ng scene. 
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