People, generally, do not seem to be conscious of, or care about, the enormous dangers of climate change and even the possibility of a devastating war in the Korean peninsula that could turn nuclear. They carry on with their routine and banal conversations as if that was all that mattered. In the 60s there were peace demonstration, there was more awareness and public engagement in the face of the thread of nuclear war. Could the pressures and demands of modern capitalism, now no longer tamed by a competing communist system that could potentially appear to be more attractive, be a causal factor? People caught up in the turmoil of a positive feedback loop rarely perceive reality beyond it. This simple CLD tries to illustrate the dynamic and feedback loops that could be responsible for this strange apathy and how our present day economic system could be blinding us to imminent danger.

Simulating Hyperinflation for 3650 days.

If private bond holdings are going down and the government is running a big deficit then the central bank has to monetize bonds equal to the deficit plus the decrease in private bond holdings.  We don't show the details of the central bank buying bonds here, just the net results.

See blog at http://howfiatdies.blogspot.com for more on hyperinflation, including a hyperinflation FAQ.

This model attempts to illustrate a Strong Towns' perspective of municipal financing of our communities based on a development Growth Ponzi Scheme. http://www.strongtowns.org/the-growth-ponzi-scheme/ 

Clusters of interacting methods for improving health services network design and delivery. Includes Forrester quotes on statistical vs SD methods and the Modeller's dilemma. Simplified version of IM-14982 combined with IM-17598 and IM-9773

The upper diagram shows the principal factors that have an influence on the budget deficit and indicates what needs to be done to correct it. But this is not the full story. The diagram below shows that  cutting public expenditure reduces aggregate demand and  increases unemployment. The reduction of aggregate demand  reduces  economic activity which has the effect of reducing  tax revenue.  In addition, the state has to pay out funds as there is a need for more unemployment benefit payments.   The result of these austerity measures  is often the opposite of their intended purpose: they can increase rather than decrease the budget deficit.

There is plenty of empiric evidence to show that this has happened time and time again. For instance, a report from UNCTAD (United Nations Conference on Trade and Development) found that between 1990 and 2000 in all the  cases examined where cutbacks in public spending and tax increases were used, the fiscal situation did not only not improve but worsened. Despite such repeated evidence, unfortunately calls for  austerity measures continue to be heard. 

The macroeconomic ruel: SPENDING = INCOME = OUTPUT, WHICH DRIVES EMPLOYMENT is presented here in a schematic form. Output can be taken to be equivalent to  GDP. In order to maintain output it is necessary for all the income earned to be spent. If this is not the case, then companies find they have excess unsold stock on their hands and will cut back on production. This, in time, will lead to an increase in unemployment as companies need fewer employees. The shortfall in spending can be made up by any of the three sectors that contribute to total output. However, in cases where  a country has a trade deficit and where the private sector is not spending or investing enough, the only option is for the government to Net Spend i.e. to spend more than it collected in taxes causing a fiscal deficit.

This model is based off Meadows economic capital with reinforcing growth loop constrained by a renewable resource model.

I made this model to simulate how a companies revenue will change depending on the lifetime of the appliances it manufactures, in combination with the ratio of repair costs and price. It also shows the accumulation of e-waste.

Circular equations WIP for Runy.

Goodwin cycle IM-2010 with debt and taxes added, modified from Steve Keen's illustration of Hyman Minsky's Financial Instability Hypothesis "stability begets instability". This can be extended by adding the Ponzi effect of borrowing for speculative investment.

A sample model for class discussion modeling COVID-19 outbreaks and responses from government with the effect on the local economy.  Govt policy is dependent on reported COVID-19 cases, which in turn depend on testing rates less those who recover