During the 'big recession' many governments have deliberately repressed salaries, usually via structural reforms, in order to gain competitivity. However, repression of salaries increases inequality, social discontent and often has counterintuitive effects. Salaries are a cost for companies, but they are also the basis for the demand for the goods and services they offer: people with little income cannot afford them. Scientific studies have shown repeatedly that economic growth generated via salary increases does not endanger the creation of employment, but rather reinforces it. In most countries, the 'positive effect of salary increases' eclipses any possible negative effects on export competitivity and even any detrimental effect on investment. A good example of such a study is the work of ONARAN and OBST on Wage-led Growth in the EU15 Member States (2016).  This positive dynamic has been highlighted in the model by prominent arrows. The policy implications for governments are clear! 

I have tried to capture the unemployment benefits budget in a causal loop diagram. You can make this as extensive as you want, but I have tried to focus on how unemployment benefits are financed and on the main determinants of expenditures and income. I was not (yet) able to 'close te loop' - to build the diagram up from feedback cycles. 
The diagram is in Dutch.

Peak oil occurs not when there are no more reserves, but when it is too expensive to bring them to the surface. The diagram describes a dynamic where peak oil leads to oil prices that are too low for oil companies to produce oil. There are two keys to understand this counterintuitive situation. First, it is important to realize that without energy (oil) no economic activity can take place. Second, when supplies of oil become scarce, non-elite workers  - because of the contraction of the economy - will lose their jobs or suffer salary cuts. This will make goods containing (or using) oil products too expensive for the masses. Demand for those products (most things on the market) will decline and with it demand for oil - oil prices will drop too low for oil companies to produce oil!

These ideas stem from Gail Tverberg's blog: 'Our Finite World'. https://ourfiniteworld.com/

Plan for CCP project completion see IM-102242  for WIP detail of the structures of the related models

Nobody seems to notice bubbles until they burst. One possible reason is that those caught up in a bubble are completely blinded by the grip, the overpowering logic and force excerted by the positive feedback loop that drives it. Financial bubbles occur time and time again - and nobody seems to learn. Another example on a different time scale is an argument that spins out of control and ends in violence. The participants seem to be blind to the consequences; the immediate and imperative logic of the feedback loop imposes itself. The vortex created by the feedback loop even seems to draw in outsiders, such as new investors. Is this the reason why we don't notice bubbles? This explanation is meant to stimulate discussion!

First pass at model depicting importance of Net Capital Accumulation on economic growth of firm - from firm's perspective

Taken from Saeed, Khalid. ‘Limits to Growth Concepts in Classical Economics’. In Feedback Economics: Economic Modeling with System Dynamics, edited by Robert Y. Cavana, Brian C. Dangerfield, Oleg V. Pavlov, Michael J. Radzicki, and I. David Wheat, 217–46. Cham: Springer International Publishing, 2021. https://doi.org/10.1007/978-3-030-67190-7_9.

On the occasion of th G20-meeting in Toronto, the German Economics minister Herr Schaüble said that without restoring confidence it would not be possible to get consumer spending and business investment going. Similar remarks were made by David Cameron and Señor Zapatero of Spain. All maintain that confidence is a pre-requisite to get growth going and that, therefore, it was imperative to reduce fiscal deficits. Reducing the fiscal deficit will restore confidence at first. However, reducing the deficit very quickly will introduce a dynamic that may cause the economy to decline - and perhaps depress  consumers demand even further.  It will actually destroy confidence: few businesses are inclined to invest in a shrinking economy. Cutting the deficit too rapidly or too steeply can lead to a confidence trap.

NOTE: A big experiment is now taking place in the UK - the government has cut public spending severely! Will this lead to hardship and, perhaps, social unrest? 

Explanation of the Model

Clone of Wagdy Samir Macroeconomics work in progress IM-901 Additions and deletions based on Robert Skidelsky's description of Keynes general THeory from his Biography Vol2 p 549 -571

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

This simple model describes wealth accumulation. The value in income is described by the following simple equation:

Model-SIM from Chapter 3 of Wynn Godley and Marc Lavoie's Monetary Economics, adapted for an open economy. The model is stock-flow consistent with only government money--no bills or bonds. No central bank and interest rates do not change. Government spends buying output from the production sector. The production sector is passive turning over all revenue over to households. Households save out of income and spend partially spend out of wealth. Imports and exports pass through the production sector illustrating the idea that consumer households buy from domestic businesses that which they have imported. The model also tracks the sectoral balance flows and changes in equity. Sectoral flows and equity balances match each other dollar for dollar to satisfy the sectoral balances accounting identity (Household Saving - Consumption) + (Business Saving - Expenditure) + (Taxes - Government Spending) - (Exports - Imports) = 0. Since business investment occurs internally to the Business Sector, 

WIP Summary of MIchael Hudson's Book Killing the Host: How Financial Parasites and Debt destroy the Global Economy 

Based on G.P. Cimellaro et al. Framework for analytical quantification of disaster resilience Engineering Structures 32 (2010) 3639–3649 paper

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

The complex model reflects the COVID-19 outbreak in Burnie, Tasmania. The model explains how the COVID-19 outbreak will influence the government policies and economic impacts. The infected population will be based on how many susceptible, infected, and recovered individuals in Burnie. It influences the probability of infected population meeting with susceptible individuals.

The fatality rate will be influenced by the elderly population and pre-existing medical conditions. Even though individuals can recover from COVID-19 disease, some of them will have immunity loss and become part of the susceptible individuals, or they will be diagnosed with long term illnesses (mental and physical). Thus, these variables influence the number of confirmed cases in Burnie and the implementation of government policies.

The government policies depend on the confirmed COVID-19 cases. The government policies include business restrictions, lock down, vaccination and testing rate. These variables have negative impacts on the infection of COVID-19 disease. However, these policies have some negative effects on commercial industry and positive effects on e-commerce and medical industry. These businesses growth rate can influence the economic growth of Burnie with the economic

Most of the variables are adjustable with the slider provided below. They can be adjusted from 0 to 1, which illustrates the percentages associated with the specific variables. They can also be adjusted to three decimal points, i.e., from 0.1 to 0.001.

Assumptions

- The maximum population of Burnie is 20000.
- The maximum number of infected individuals is 100.
- Government policies are triggered when the COVID-19 cases reach 10 or above.
- The government policies include business restrictions, lock down, vaccination and testing rates only. Other policies are not being considered under this model.
- The vaccination policy implemented by the government is compulsory.
- The testing rate is set by the government. The slider should not be changed unless the testing rate is adjusted by the government.
- The fatality rate is influenced by the elderly population and pre-existing medical conditions only. Other factors are not being considered under this model.
- People who recovered from COVID-19 disease will definitely suffer form immunity loss or any other long term illnesses.
- Long term illnesses include mental illnesses and physical illnesses only. Other illnesses are not being considered under this model.
- Economic activities are provided with an assumption value of 1000.
- The higher the number of COVID-19 cases, the more negative impact they have on the economy of Burnie. 

Interesting Insights

A higher recovery rate can decrease the number of COVID-19 cases as well as the probability of infected population meeting with susceptible persons, but it takes longer for the economy to recover compared to a lower recovery rate. A higher recovery rate can generate a larger number of people diagnosed with long term illnesses.

Testing rate triggers multiple variables, such as government policies, positive cases, susceptible and infected individuals. A lower testing rate can decrease the COVID-19 confirmed cases, but it can increase the number of susceptible people. And a higher testing rate can trigger the implementation of government policies, thus decreasing the infection rate. As the testing rate has a strong correlation with the government policies, it can also influence the economy of Burnie. 

Implementation of the Solow model of economic growth with labor enhancing technology.

parameters: s, alpha, delta, n, gA
variables: Y. K, L, C, A
per capita variables: y, k, c, a
per capita and technology variables: y~, k~, c~
steady state variables: y~*, k~*, c~*
all variables come with relative growth rates g

Features:

+steady state from beginning
+one time labor shock
+permanent savings quote shock
+permanent technological growth rate shock

Decreasing steady state variables when starting in steady state are numeric artifacts.

Based on chapter 14 of Modeling Dynamic Economic Systems

This model is to show the status of numbers of infected people, recovered people and deaths during COVID-19 in Burnie Australia. It also shows impact on the growth of economy.