​Farmers use intensive pesticides to harvest cotton, which is harmful to not only the health of the farmers using them, but also our environment as it pollutes rivers and groundwater that negatively interfere with the ecosystem. Even though these farmers know of the health and environmental risks, they still use harmful pesticides to produce cotton, but why is this so. This stock and flow map should explain what impacts farmers to use pesticides to grow cotton despite the risks and explain the cause and effect relationship their use has on the cotton industry and the environment.

Irving Fisher's Debt Deflation Theory from Michael Joffe Fig. 3.4 p54 Ch3 Feedback Economics Book with Private Credit Inflation boom added to the  bust cycles

This model shows the operation of an extremely simple economy. The system produces and consumes each item (or good) at a fixed rate.

When production exceeds consumption, consumer goods accumulate in stocks. Trading may occur between actors in this system. That will not, however, affect the quantities of the stocks of goods. It only affects ownership (not a concern of this model.)

The recent moratorium on deep-sea drilling will reduce the supply of oil. But the world-wide trend is an ever increasing demand for it. This simple CLD  tries to illustrate the dampening effect on demand and on economic activity of diminishing oil supplies and of rising prices: oil prices  affect virtually all products and especially agricultural production. As it becomes more and more difficult to extract oil, prices must rise. At the moment the global recession counteracts this effect, but the recession will not last forever. Is it too early to speak of Peak Oil?

Adam Smith's The Invisible Hand: The Feedback Structure of Markets. From Sterman JD Business Dynamics p170 Fig 5-26. A price-mediated resource allocation system..

This is to support a discussion on money flows and growth. Money as a lubricant for the flow of embodied energy in human systems.
See also A Prosperous Way Down website

A simple budget planning system.  What additional complexities can you add?

This is a toy model of an investment market.

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. 

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!

Causal loop structure of system dynamics models of the business cycle and the Kondratieff long wave from Gene Bellinger's AI gemini prompts mc and mr Jan2026 From MIT Sloan school work esp Forrester and Sterman

Assignment 1- Part 2 Energy Economics and Fossil Fuels

This model simulates a COVID outbreak occurring at Burnie, Tasmania. It links the extent to the pandemic with governments intervention policies aiming to limit the spread of the virus. The other part of the model illustrates how will the COVID statistics and the government enforcement jointly influence the economic environment in the community. A number of variables are taken into account, indicating positive or negative relationship in the infection and the economy model respectively.

 

Assumptions

·         Government takes responsive actions when the number of acquired cases exceeds 10.

·         Government’s prompt actions, involving closure of the state border, lockdown within the city, plans on mandatory vaccination and testing, effectively control the infection status.

·         Economic activities are reduced due to stagnation in statewide tourism, closure of brick-and-mortar businesses, and increased unemployment rate, as results of government restrictions.

 

Insights

Government’s rapid intervention can effectively reduce the infected cases. The national vaccination rollout campaign raises vaccination rate in Australians, and particularly influence the death rate in the infection model. Please drag the slider of vaccination to a higher rate and run the model to compare the outcomes.

Although local economy is negatively affected by government restriction policies, consumer demand in online shopping and government support payments neutralize the negative impact on economy and maintain the level of economic activities when infections get controlled. 

WIP of Rammelt's 2019 System Dynamics Review Article which has STELLA and Minsky software versions as supplements. Compare with the older IM-2011 version

• This model examines how sustainable consumerism is from social, economic, and environmental aspects. The question in focus is "How will our second-hand clothing donations affect communities in developing countries, specifically Kenya?"

WIP SD REpresentation of Steve Keen's BOMD Minsky model (described in Fig.5 of his patreon Jan2021 Draft New Economics Manifesto) to hope to make the causal structure clearer

Difficulties with formulae and links

A causal loop diagram illustrating solutions for the homelessness problem

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

This seeks to model increasing improvements in long run economic growth potential as the education level increases.