• 9. Exponential versus Linear Growth

  • Jul 19 2022
  • Length: 10 mins
  • Podcast

9. Exponential versus Linear Growth

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  • Summary

  • To better understand exponential growth, here’s a short story. A little girl is negotiating her allowance with her parents. “Just pay me a penny and double my pay every week.” Sounds easy enough. At first glance, this sounds like a great deal.

    By week four, she’s only making eight cents a week. Her parents still feel like it’s a good deal. After two months, she’s making $2.56 a week. In six months, she’s making $335,544.32 a week, and after one year, her earnings are equal to the GDP of the United States of America. She accepts Venmo, PayPal, or Apple Pay.

    Exponential growth is a game changer.
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