Insight diagram
Economic Assessment Model Virtualisation of Electric Substations
4 2 months ago
Insight diagram
​In a recent report, the World Economic Forum considered that the use of robots in economic activity will cause far more job losses in the near future than there will be new ones created. Every economic sector will be affected. The CLD tries to illustrate the dynamic effects of replacing human workers with robots. This  dynamic  indicates that if there is no replacement of the  income forgone by the laid off workers, then the economy will soon grind to a halt. To avoid disaster, there must be enough money in circulation, not parked in off-shore investments, to permit the purchase of all the goods and services produced by robots. The challenge for the government is to make sure that this is  case.  

ROBOTS AND A DISATROUS ECONOMIC DYNAMIC
Insight diagram
Tragedy of the Commons Climate Change
Insight diagram
Simulation of MTBF with controls

F(t) = 1 - e ^ -λt 
Where  
• F(t) is the probability of failure  
• λ is the failure rate in 1/time unit (1/h, for example) 
• t is the observed service life (h, for example)

The inverse curve is the trust time
On the right the increase in failures brings its inverse which is loss of trust and move into suspicion and lack of confidence.
This can be seen in strategic social applications with those who put economy before providing the priorities of the basic living infrastructures for all.

This applies to policies and strategic decisions as well as physical equipment.
A) Equipment wears out through friction and preventive maintenance can increase the useful lifetime, 
B) Policies/working practices/guidelines have to be updated to reflect changes in the external environment and eventually be replaced when for instance a population rises too large (constitutional changes are required to keep pace with evolution, e.g. the concepts of the ancient Greeks, 3000 years ago, who based their thoughts on a small population cannot be applied in 2013 except where populations can be contained into productive working communities with balanced profit and loss centers to ensure sustainability)

Early Life
If we follow the slope from the leftmost start to where it begins to flatten out this can be considered the first period. The first period is characterized by a decreasing failure rate. It is what occurs during the “early life” of a population of units. The weaker units fail leaving a population that is more rigorous.

Useful Life
The next period is the flat bottom portion of the graph. It is called the “useful life” period. Failures occur more in a random sequence during this time. It is difficult to predict which failure mode will occur, but the rate of failures is predictable. Notice the constant slope.  

Wearout
The third period begins at the point where the slope begins to increase and extends to the rightmost end of the graph. This is what happens when units become old and begin to fail at an increasing rate. It is called the “wearout” period. 
BATHTUB MEAN TIME BETWEEN FAILURE (MTBF) RISK
Insight diagram

The World3 model is a detailed simulation of human population growth from 1900 into the future. It includes many environmental and demographic factors.

Use the sliders to experiment with the initial amount of non-renewable resources to see how these affect the simulation. Does increasing the amount of non-renewable resources (which could occur through the development of better exploration technologies) improve our future? Also, experiment with the start date of a more environmentally focused policy.

ECM-Training - World3 Model (clone) : Classic World Simulation
Insight diagram
Brief Summary of Albert O Hirschman's Book with 2026 update
The Passions and the Interests
Insight diagram
The causal loops are presented to transfer values from Economic values in Capitalism to Community values in the new economy
1. Value System Change
Insight diagram
Simpler view IM-70351 combined with Economic ViewIM-69774 in preparation for integrating with Prevention Investment Framework (private) IM
Reworked at Multiscale simpler view IM
Integrating Simple and Economic Views of Prevention
Insight diagram
WIP based mostly on Jan Toporowski 2013 vol 1 and 2018 vol 2 books on Michal Kalecki: An Intellectual Biography  
Layout Consistent with David Wheat MacroEconomic model CLD Insight by Gene Bellinger  
Kalecki economic thought
Insight diagram
Barangay IRAWAN Systems Model
Biophysical, Socio-cultural & Economic Data of Bgy. IRAWAN
Insight diagram
This is a complex model of COVID-19 outbreak in Burnie Tasmania. It show the effect of government policy to local economic and the impact of Covid-19. 

Assumptions
Government policy can reduce the number of infected, however also would reduce the economic growth. 

Interesting insights
Based on changing the value of government policy, it show that the policy can help to reduce on the number of death and infection. 

Covid-19 Out break
Insight diagram
OVERSHOOT GROWTH GOES INTO TURBULENT CHAOTIC DESTRUCTION

The existing global capitalistic growth paradigm is totally flawed

The chaotic turbulence is the result of the concept of infinite bigness this has been the destructive influence on all empires and now shown up by Feigenbaum numbers and Dunbar numbers for neural netwoirks

See Guy Lakeman Bubble Theory for more details on keeping systems within finite limited size working capacity containers (villages communities)

OVERSHOOT GROWTH INTO TURBULENCE
Insight diagram
This simple model is derived from  D.H. Meadows, Thinking in Systems chapter 2, figures 27 and 28.  It is designed to explain and demonstrate how the economic system is driven by both an amplifying feedback loop (shown in blue) and a stabilizing feedback loop (shown in red).
Project 2: Meadows Economic Capital Model
Insight diagram
Smithian growth model from Michael Joffe Fig. 3.7 p57 Ch3 Feedback Economics Book
Adam Smith's Growth through Division of labour
Insight diagram
Overview
The model simulates how logging in with tourism(mountain biking) in Derby Tasmania.
How the model works.
Trees grow, loggers cut them in order to sell them because of demand for Timber.
Mountain cyclist depends on satisfaction and expectation.  Satisfaction and Expectation depends on Scenery number of trees compared to visitor and Adventure number of trees and users.  Park capacity limits the number of users.  Local Business is influenced by the timber and number of Mountain Cyclist. Employment is influenced by the number of mountain cyclist and logging activity.

Simulation of Mountain Cyclist vs logging
Insight diagram
Simple model of the global economy, the global carbon cycle, and planetary energy balance.

The planetary energy balance model is a two-box model, with shallow and deep ocean heat reservoirs. The carbon cycle model is a 4-box model, with the atmosphere, shallow ocean, deep ocean, and terrestrial carbon. 

The economic model is based on the Kaya identity, which decomposes CO2 emissions into population, GDP/capita, energy intensity of GDP, and carbon intensity of energy. It allows for temperature-related climate damages to both GDP and the growth rate of GDP.

This model was originally created by Bob Kopp - https://insightmaker.com/user/16029 (Rutgers University) in support of the SESYNC Climate Learning Project.

Steve Conrad (Simon Fraser University) modified the model to include emission/development/and carbon targets for the use by ENV 221.
REM 221 Simple Climate-Carbon-Economic Model with Targets
Insight diagram
Microeconomic measures can produce counterintuitive 'emergent' effects at the macro or systemic level. The commendable act of saving money by individuals during uncertain economic times has the perverse macroeconomic effect of making a recession  worse: in aggregate there will be less money available for spending, suppressing demand for goods and services. Economists call this effect 'the paradox of thrift'. Similarly, logical efforts by companies in such conditions to reduce their wage bill or their postponement of investment decisions will reduce spending in the economy  and deepen the economic downturn.

What can be done to counteract this harmful dynamic? The missing spending can be replaced by government spending: governments have it within their power to effectively counter economic downturns!

Microeconomic Savings can convert to Macroeconomic Costs
Insight diagram
Cornerstore Economic Model
Insight diagram
Simple model of the global economy, the global carbon cycle, and planetary energy balance.

The planetary energy balance model is a two-box model, with shallow and deep ocean heat reservoirs. The carbon cycle model is a 4-box model, with the atmosphere, shallow ocean, deep ocean, and terrestrial carbon. 

The economic model is based on the Kaya identity, which decomposes CO2 emissions into population, GDP/capita, energy intensity of GDP, and carbon intensity of energy. It allows for temperature-related climate damages to both GDP and the growth rate of GDP.

This model was originally created by Bob Kopp (Rutgers University) in support of the SESYNC Climate Learning Project.
Simple Climate-Carbon-Economic Model
Insight diagram
Overview: 
The model shows the industry competition and relationship between Forrestry and Mountain Bike Trip in Derby, Tasmania. The aim of the simulation is to find a balance between the co-existence of these two industry.

How Does the Model Work?

Both industries will generate incomes. Firstly, income is generated from the sale of timber through logging. In addition, income is also generated from the consumption of mountain bike riders. Regarding to the Forrestry industry, people cut down trees because there is a market demand for timber. The timber is sold for profits. However, the experience of mountain biking tourism is largely affected by the low regeneration rate of trees and the degradation of the environment and landscape due to tree felling. People have better riding experiences when trees are abundant and the scenery is beautiful. People's satisfaction and expectations depend on the scenery and experience. Recommendations of past riders will also impact the tourists amount.

Interesting Insights

The income generated by logging can provide a significant economic contribution to Tasmania, but excessive logging can lead to environmental problems and a reduction in visitors. Excessive logging can lead to a decline in tourism in the mountains, which will affect tourism. Despite the importance of forestry, tourism can also provide a significant economic contribution to Tasmania. The government should find a balance between the two industries while maintaining the number of tourists. 



Simulation of Derby Mountain bikes versus logging
Insight diagram

Wealth can be seen as the factories, infrastructure, goods and services the population of a nation dispose of. According to Tim Garrett,  a scientist who looks at the economy from the perspective of physics, it is existing wealth that generates economic activity and growth. This growth demands the use of energy as no activity can take place without its use. He also points out that the use of this energy unavoidably  leads to concentrations of CO2 in the atmosphere.  All this, Tim Garrett says,  follows from the second law of thermodynamics.  If wealth decreases then so does economic activity and growth. The CLD tries to illustrate how wealth, ironically, now generates the conditions and feedback loops  that  may cause it to decline. The consequences are  inevitably economic  stagnation (or secular recession?). 

You can read about the connection Tim Garrett makes between 'Wealth, Economic Growth, Energy and CO2  Emissions' simply by Googling 'Tim Garrett and Economy'.

ECONOMIC GROWTH WILL MAKE EVERYTHING WORSE
Insight diagram
Overview of Part F Ch 25 and 26 of Mitchell Wray and Watts Textbook see IM-164967 for book overview
Economic Instability
Insight diagram
Summary of Ch 27 of Mitchell Wray and Watts Textbook see IM-164967 for book overview See IM-169093 for added dynamic evolutionary economics history
History of Economic Thought
Insight diagram
WIP Summary of Michael Thompson's Book See also Marco Verweij's 2011 book Clumsy Solutions for a Wicked World
Organising and Disorganising