So Fred takes the gift from Sam and tests it for a couple of weeks. Since Fred is unable to know what to do with his potential leisure time, Fred just cuts down trees so that eventually his world looks like this:

Fred, remember, is cursed with a conscience and therefore is forced to think about the long term consequences of Sam's gift:

After a heated debate, somewhat tempered by the fact that there were now no longer any trees locally to act as a wind break, Fred was able to convince Sam that the Iron Axe was indeed not a gift at all because it had a long term flaw. So Sam walked over to the cliff (the metaphorical edge of the world) and casually discarded the Iron Axe.

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The Electronic Universe Project