Capitalism is in crisis and climate
change disruption is now beginning to hit the bottom line. Insurance companies
know this well. According to a report by the Bank of England, insured losses
have risen from $10 000 million in 1985 to $50 000 million in 2015. Climate change
cannot be reversed, and extreme weather events
will undoubtedly get worse in the future strengthening the disruptive effects
shown in the CLD. Another dynamic is that
companies will continue to automate and, as The Economic Policy Institute has shown,
fail to reflect productivity gains in workers' salaries. The result, stagnating
salaries is disastrous for demand, given that capitalism needs endlessly rising demand
and consumption. A further serious problem is that as climate change gets worse
there will be increasing demands for companies to assume their responsibility and
bear the costs of negative externalities. The CLD shows these factors which are likely
to lead to the collapse of the system: when capitalism can no longer generate 'capital'
it has stopped to serves any useful purpose.
Theory of Structural Change for IAMO Research Group
The part-whole paradigm
Examples of
research issues addressed here include the path dependence of farm structures,
regime shifts in land-system change, as well as transitional processes in the
evolution of farm structures and innovation systems. All these issues feature
counter-intuitive systemic properties that could not have been predicted using
standard agricultural economics tools. The key strength of the research group
in regard to the part-whole paradigm is the internationally renowned expertise
in the agent-based modelling of agricultural policy. (More on what happened here until now / is happening now)
The system-environment paradigm
This paradigm is represented by conceptual
research drawing inspiration from Niklas Luhmann’s theory of “complexity-reducing”
and “operationally closed” social systems. The attributes of complexity
reduction and operational closure are shown to generate sustainability
problems, conflicts, social dilemmas, ethical issues, and divergent mental
models. The organizing idea explaining these phenomena is the
complexity-sustainability trade-off, i.e., the tendency of the operationally
closed systems to develop excessive internal complexity that overstrains the
carrying capacity of the environment. Until now, the conceptual work along
these lines has focused on developing the systems-theoretic principles of
ecological degradation and highlighted the sustainability-enhancing role of
nonprofit organizations and corporate social responsibility. Another overarching
topic has been the analysis of connections between Luhmann’s social systems
theory and the evolutionary economics approaches, such as those of Thorstein
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This high-level
simulation model presented by Jay Forrester in his book World Dynamics, simulates
socio-economic-environmental world system. The world Model was created in a
time where pollution and other negative effects of industrialization and
economic growth started to become recognized in 1970. For this exam purpose, we have
rebuilt the model to do some experiments and analyze the results.
Starts from the bathtub model of economics developed by TSSEF.se (see the explanation here). It adds rich and poor and you can change the constraints on the system by moving the sliders (taxes, wages, rates, dividends etc) to see how the economic system functions at national level.
I have tried every combination I can but I think you will agree with me that the system is unstable. OR maybe I forgot something.
Any activity requires the use of energy. Economic activity
is not possible without energy,
especially fossil fuels. An increase in economic activity necessarily
leads to an increase in the use fossil
fuels and greenhouse gas emissions. In addition there will be a commensurate increase in waste products,
pollution and heat. This is dictated by the laws of physics and unavoidable. A problem arise when the cost of this degeneration
caused by continual economic growth surpasses the benefit society derives from it. The ecological economist Professor Herman Daly (2014) explained that
when the impact on the ecosystem is correctly measured, global growth has reached
a point where the total private and social costs of economic growth outweigh
the private and social benefits. In other words, more economic growth is making global society worse off overall - growth has become uneconomic! The model
shows that eventually pressures will build up that counteract the perennial
belief that all social ills can be solved with economic growth.
This page provides a structural analysis of POTUS Candidate Bernie Sanders. The method used is Integrative Propositional Analysis (IPA)
available:
http://scipolicy.org/uploads/3/4/6/9/3469675/wallis_white_paper_-_the_ipa_answer_2014.12.11.pdf
This model was designed from the SIR model(susceptible, infected, recovered) to determine the effect of the covid-19 outbreak on economic outcomes via government policy.
Assumptions
The government policy is triggered when the number of infected is more than ten.
The government policies will take a negative effect on Covid-19 outbreaks and the financial system.
Adjusted parameter: Immunity loss rate can be changed from vaccination rate.
Government policy's parameters
Adjusted parameters: Testing rate(from 0.15 to 0.95), vaccination rate(from 0.3 to 1), travel ban(from 0 to 0.9), social distancing(from 0.1 to 0.8), Quarantine(from 0.1 to 0.9)
Economic's parameters
Fixed parameter: Tourism
Adjusted parameter: Economic growth rate(from 0.3 to 0.5)
Interesting insight
An increased vaccination rate and testing rate will decrease the number of infected cases and have a little more negative effect on the economic system. However, the financial system still needs a long time to recover in both cases.
This is the summary of lecture 1 of my Course about StartUps. It's an intro to the startup ecosystem and the different stakeholders that can interact with your new enterprise at different stages of its evolution and growth. -version 1 - for info or suggestions: bonato.pietroz@gmail.com
