system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5 - Please explain this economics to me, I just can't wrap my head around it

 This is a common math problem that floats around the internet in many forms but I just don't get it.

1. I borrow $50 from person A
2. I borrow $50 from person B
3. I buy something for $97 leaving $3 change
4. I repay $1 to person A leaving $49 owing
5. I repay $1 to person B leaving $49 owing
6. I keep $1 for myself
7. I now owe $49 each to persons A and B making a total of $98 owed and I have repaid $2 total ($1 each to person A and B)
8. $98 owed + $2 paid = $100 that I initially borrowed
9. How the f\*\*k did I magically get to keep $1 from seemingly nowhere?
gpt
You're looking at it all wrong.  You started with $0.  You borrowed $100, which brought you to -$100 net worth.  You bought a $97 widget.  That left you with a $97 widget and $3, with a total debt of $100.  You paid $2 on your debt.  That left you with a $97 widget, and $1 in cash, and a total debt of $98.  Thus, you have assets worth $97+$1=$98, and debts totaling $98, which is the same as the $0 net worth you started with.