Capital Decay

Definition

The gradual reduction in available capital over cycles when R < 1.0. Even with 90% recycling, each cycle loses 10% of capital.

Capital after N cycles = C₀ × Rᴺ

With R=0.9, after 10 cycles: $100K × 0.9¹⁰ = $34,867 remaining.

PSC Section 3.4

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Perpetual Social Capital

The gradual reduction in available capital over cycles when R < 1.0. Even with 90% recycling, each cycle loses 10% of capital.

Capital after N cycles = C₀ × Rᴺ

With R=0.9, after 10 cycles: $100K × 0.9¹⁰ = $34,867 remaining.

PSC Section 3.4

Search 905 terms across all IRSA research papers.