ABSTRACT
Imagine a community that has access to a lake with a fish stock. The community exploits the fish stock and consumes the harvest. It is possible for the community to increase the harvest by 3% each year, which is reflected in the growth of the gross national product. Innovative members of the community, who have been taught economics, propose that if some of the harvested fish is not consumed by the fishermen but saved to be consumed by people of the community, who instead of going fishing could build a boat, the fish harvest could then increase even more in the long run. Now with the improved technology the harvest growth rate increases to 4%, which makes it possible to save more fish to invest in boat builders. Everyone is happy because the growth rate of the gross national product is high.
