Modern industrial civilisation has created massive
interdependencies which define it and without which it could not function. We all
depend on industrial farming to produce the food we eat, we depend on gasoline
being available at the gas station, on the
availability of electricity and even on the bread supplied by the local baker. Naturally,
we tend to support the institutions that supply the amenities and goods to
which we have become accustomed: if we get our food from the local supermarket,
it is likely that we would be opposed to it’s closure. This means that the economic
system that relies on continuous growth enjoys implicit societal support and that
nothing short of environmental disaster or a shortage of essential raw
materials will impede it’s growing indefinitely. It is not hard to work out the
consequences of this situation!
The Inescapable Dynamic of Economic Growth
This is part of series of model implemented from "Thinking in Systems" book by Donella Meadows
Thinking in Systems - Economic Capital - Fig 37, 44
Economic growth model v.1
This model shows the structure and operation of a simple economy. It can represent economic systems at different levels of abstraction (e.g. a single good, a group of goods, multiple groups, & an "economy.")
This model has one significant difference from Model 4. The fractional consumption rate table serves the purpose of demonstrating the effects of changes in the fractional consumption rate (or the converse the fractional rate of saving) from 100% to less-than 100% to more-than 100%.
It demonstrates dramatically the effects of significant changes in consumption rates.
Simple Economy: Model 5
A clone of the 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: http://www.jstor.org/stable/10.2307/4538470.
This model requires development and testing. Please contact the author if you are able to help.
Minsky Financial Instability Model
Economic capital growth in a system constrained by a non-renewable resource, Figure 37 from Thinking in Systems by Donella H. Meadows
Economic Capital Growth - Resource Constrained
Extended from
Im-628 Supply and demand by adding control folder.
See also Managing Health Services Use IM-17566
Based on JHPPL 2015 article Note here the framing is an economic exchange rather than a public service (needs-services-resources) or capabilities
Neoliberalism and health policy
Barangay IRAWAN Systems Model
Biophysical, Socio-cultural & Economic Data of Bgy. IRAWAN
This model shows the operation of a simple economy. It demonstrates the effect of changes in the fractional rate of consumption (or the converse the fractional rate of saving.)
In summary, lower rates of consumption (based on production) result in higher rates of production and consumption in the long-run.
Simple Economy: Model 8 Alternative
This is an interface to explore UK-SSP4.
UK-SSP4 Inequality
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
The term 'work' has been used in this model in the sense of economic activity to include not only
work done by people but also by machines. The model shows 8 positive
feedback loops that reinforce work and the need to work. From the perspective of physics, civilisation can be described as a MECHANISM FOR USING ENERGY AND DOING WORK.
Work, however, has some unavoidable consequences. The second law of thermodynamics
tells us that any ‘work’ requires the use of energy and that DOING WORK entails
the generation of WASTE HEAT. The laws of physics also tell us that CO2 emissions from burning fossil fuels will cause global warming. These unintended
and unavoidable consequences are highlighted in the model by prominent arrows.
Can
the structure of this system be changed to avoid a foreseeable collapse of civilisation?
Do economic activity and work unavoidably lead to doom?
A Tragedy of the Commons situation exists whenever two or more activities, each, which in order to produce results, rely on a shared limited resource. Results for these activities continue to develop as long as their use of the limited resource doesn't exceed the resource limit. Once this limit is reached the results produced by each activity are limited to the level at which the resource is replenished. As an example, consider multiple departments with an organization using IT resources, until they've exhausted IT capacity.
Environmental economics Niger Delta oil polluted case study
Structure of model in Nathan Forrester's 1983 MIT Thesis comprising 4 models
Macroeconomics System Dynamics Nathan Forrester
ECONOMIC GROWTH feeds on itself, provided the
growth engine is fed with materials and
finance. In this highly simplified representation some of the factors that influence economic growth
are show in the incircled green fields. Governments can influence economic growth positively
via investments and payouts. The most
obvious tool which governments can use to slow an overheated economy is
taxation.
Economic Growth Engine
Supply-Demand Shortside Adjustment
This is an interface to explore UK-SSP1.
UK-SSP1 Sustainability
An initial study of the economics of single use coffee pods.
Coffee Pods ISD Humanities
Simple tragedy of the commons behavior model.
Common Resources
WIP Exttension of IM-172005 Simulation of Goodwin01 Minsky Model. Compare with Part3 slide 5 of presentation in patreon
Goodwin02 Minsky Simulation Keen Economic Dynamics Aug2019
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
Cornerstore Economic Model
Overview of Part E Ch 20 to 24 of Mitchell Wray and Watts Textbook see IM-164967 for book overview
Economic policy in an open economy
