Good Simple Lesson in Economics
REALLY INTERESTING LESSON IN UNDERSTANDING THE ECONOMIC MELTDOWN Real economics and a lesson on the growth bubble and a nswer to how the US economy melted. Once there was a little island country. The land of this country was the tiny island itself. The total money in circulation was 2 dollars as there were only two pieces of 1 dollar coins circulating around. 1) There were 3 citizens living on this island country. A owned the land. B and C each owned 1 dollar. 2) B decided to purchase the land from A for 1 dollar. So, now A and C own 1 dollar each while B owned a piece of land that is worth 1 dollar. * The net asset of the country now = 3 dollars. 3) Now C thought that since there is only one piece of land in the country, and land is non producible asset, its value must definitely go up. So, he...