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Sep 27, 2019 at 13:35 comment added Darrel Hoffman This basically boils down to a feudal pyramid scheme...
Sep 27, 2019 at 10:54 comment added Adrian Colomitchi Letting the multiplication factor aside, this reminds me of the fractional reserve banking
Sep 26, 2019 at 15:43 comment added mcRobusta Counter-intuitive is the name of the game. I'm not sayingggg there's a parallel to be drawn with the real world, buuuuut...
Sep 26, 2019 at 15:22 comment added cegfault upvote from me. Very creative! I think this also works because it's counter-intuitive. Until you sit down and do the calculations, there's no way you'd estimate the result. Also, as an aside, I feel like this may be a type of fallacy even nowadays in stock markets, taxation strategies, or other financial institutions across the known world, especially in developing countries
Sep 26, 2019 at 12:10 history answered mcRobusta CC BY-SA 4.0