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An attempt: Adam sees a gold nugget on his property. He decides that rather than preserving plums like he normally does this time of year he will start a busin
by im3w1l 4y ago
An attempt:
Adam sees a gold nugget on his property. He decides that rather than preserving plums like he normally does this time of year he will start a business mining gold. He takes out a loan from Bob at a high interest rate. He hires Charlie who previously worked as a tailor, and Dick who was unemployed.
Anticipating future riches Adam, Bob, Charlie and Dick all start spending more money. Evan the innkeeper has to cook more and fancier food for them. He works longer hours and builds up some savings, thinking that he will spend it on fine gold jewelry from Adam later.
The mining effort finds absolutely nothing. Adam has neither gold nor plums and defaults on his debt to Bob. He lays off Charlie and Dick. For Evan business goes back to normal, he has money but the jewelry he wanted to buy doesn't exist.
Eventually Adam starts preserving plums again and Charlie goes back to tailoring.
- mikkergp 4y agoUntil someone else comes up with a wild idea? I guess this is sort of what I had in mind, to make it at like state or industry sized scale, new idea comes along 20 companies try it. Spend a bunch of money hire people etc, feeding the economy. 16 companies fail. 1 company grows to 4x, 3 companies stay at 1x = 7x. 13 companies worth of value sort of has to dissolve into the economy before the next innovation/growth train comes along.