The economy is built from simple transactions. You take assets or credit and exchange it for goods, services, or financial assets. That’s it. This process is repeated countless times in countless scenarios to build up the overall economy.

You gain true clarity when you see a complex system as a combination of it’s simple parts. This type of understanding applies to many things in life. By reducing your problems to their simpler parts, you gain the ability to tackle even the most challenging task. You no longer see it as a single daunting task, but many manageable tasks.

Principles

Book: Principles