Ocean/atmosphere/biosphere model tuned for interactive economics-based simulations from Y2k on.

This model also shows the operation of a simple economy. It differs from Model 1 primarily in the representation of all goods in the economy by units of measure of a higher level of abstraction. Thus, the same model can represent economies at different levels.

The simulation demonstrates how differing rates of consumption affect Savings.

Overview of Part F Ch 25 and 26 of Mitchell Wray and Watts Textbook see IM-164967 for book overview

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

Ocean/atmosphere/biosphere model tuned for interactive economics-based simulations from Y2k on.

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.

Ocean/atmosphere/biosphere model tuned for interactive economics-based simulations from Y2k on.

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'.

Ocean/atmosphere/biosphere model tuned for interactive economics-based simulations from Y2k on.

Ocean/atmosphere/biosphere model tuned for interactive economics-based simulations from Y2k on.

Simpler view IM-70351 combined with Economic ViewIM-69774 in preparation for integrating with Prevention Investment Framework (private) IM

Economic growth cannot go on forever, although politicians and most economist seem to think so. The activity involved in economic growth necessarily  generates entropy (disorder and environmental degradation). Entorpy in turn generates powerful negative feedback loops which will, as a response from nature, ensure that economic activity will eventually grind to a complete halt.  In these circumstances organised society cannot persist and will collapse. The negative feedback loops shown in this graph have already started to operate. The longer economic growth continues unabated, the more powerful these negative feedback loops will become. How long can economic growth continue before it is overwhelmed? It may not be very far in the future.

STEM conceptual model.

When people talk about a government deficit, they forget that this is only one side of the ledger. On the other is a corresponding non-government SURPLUS. The money the government spends is not lost but shows up in the private sector as income. When one talks only of the deficit then one can understand that many think it should be reduced or even converted into a surplus, but reducing the government deficit reduces private sector income and a government surplus forces a deficit on the private sector with a potentially devastating effect on private sector wealth and economic activity.  Unless the economy is overheating, government deficits are usually healthy. For countries that run traditionally a trade deficit, such as the US they are necessary to maintain economic activity. Consider this fact: for almost all of past 40 years the US and the UK have run deficits without any harmful effects!

From Peter Senge's "Fifth Discipline".

Economic capital growth model, Figure 27 from Thinking in Systems by Donella H. Meadows

Ocean/atmosphere/biosphere model tuned for interactive economics-based simulations from Y2k on.

Ocean/atmosphere/biosphere model tuned for interactive economics-based simulations from Y2k on.

Simple tragedy ​of the commons behavior model.