The purpose of this chapter is to help you understand the power of compounding. If something grows over time, such as population, demand for oil, money supply – really anything that steadily increases in size –, and you graph it over time, the graph will look like a hockey stick.
Said more simply, if something is increasing over time on a percentage basis, it is growing exponentially.
Using an example drawing on the magnificent work of Dr. Albert Bartlett, let me illustrate the power of compounding for you.
Continue reading “Crash Course Chapter 4: Compounding Is The Problem”
