Investment vs Austerity
Gene Bellinger
Model in support of an article being written about the relationship between investment and austerity. See Version 2
See also:* Inv vs Aust Sim [IM-2736]
* Inv & Output 1 [IM-2740]
* Inv & Output 2 [IM-2741]
- 2 years 7 months ago
Investment vs Austerity v3
Gene Bellinger
Model supporting research of investment vs. austerity implications. Please refer to Modern Money & Public Purpose Video.
- 2 years 7 months ago
20120908a_InvestmentVsAusterity
Paul Newton ★
I propose we grow this sim model (or similar) over time to help ourselves better understand the opposing investment and austerity strategies now being advocated for the U.S. government. The hope is to build as simple a model as possible that subsumes the major underlying feedback loops that probably exist in the mental models of proponents of each of these positions. Starting this model was inspired by this Investment vs. Austerity discussion http://www.linkedin.com/groups/Investment-vs-Austerity-How-can-4582801.S.157876413
- 6 years 1 month ago
Austerity vs Prosperity v0
Gene Bellinger
Austerity Prosperity Economics Macroeconomics Modern Monetary Theory MMT
- 2 years 7 months ago
Investment vs Austerity v2
Gene Bellinger
- 2 years 7 months ago
The Dynamic that Threatens the Stability of the Euro
Hanns-Jürgen Hodann
- 3 years 1 month ago
CUTBACKS OFTEN MAKE FISCAL DEFICITS WORSE
Hanns-Jürgen Hodann
Cutbacks can have a counterintuitive effect. The government knows precisely how much it custs in spending. However, it cannot know the extent to which tax revenues shrink in a non-linear complex economic system as the economy contracts. In addition, the treasury has to spend more as automatic stabilizers activate and payments are made to an increasing number of unemployed workers. The effect of this is that initially the deficit shrinks, but later it rises as tax revenues fall short of expectations and more spending takes place. The ironic part is that often the very indicator that promted austerity measurs, the defcit to GDP ratio, becomes worse than it was at the outset. We could observe this in Spain and Portugal where planned deficits have been repeatedly missed, as austerity measures (fiscal cutbacks) were introduced to deal with the effects of the 2008 financial crisis.
- 3 years 9 months ago
The effects of Austerity
Francis Lambert
The effect of austerity in the wrong place
- 8 years 2 months ago
Clone of Austerity vs Prosperity
Hanns-Jürgen Hodann
This model shows the basic functioning and dynamics of a 'modern monetary system'.
The non-government sectors, consisting of the private and foreign sectors initial y starts with zero currency units. It is important to realize that after creating a new currency the government must first spend currency units into the economy before they can be used: without currency units the private sector could not even pay taxes! A government that has its own freely floating currency can create a much money as it wants. It does not need tax receipts to finance its spending, and any money it spends into the economy above that collected in taxes represents income for the private sector. The model show that the government initially created 9 trillion money units, but spent only six trillion into the economy. The six trillion showed up as a government deficit, but also as wealth in the non-government sector.
Since the government can create as many money units as it wishes and transfer them to the private sector to ensure an adequate level of demand in the in the economy, austerity is unnecessary: money is available, though real resource may be scarce. This also shows that the government can contribute actively towards the creation of prosperity.
Please note that this model was originally created by Gene Bellinger, IM 3206, from which this version was cloned.
Austerity Prosperity Economics Macroeconomics Modern Monetary Theory MMT
- 4 years 2 months ago
Clone of Clone of Austerity vs Prosperity
emilio piccoli
This model shows the basic functioning and dynamics of a 'modern monetary system'.
The non-government sectors, consisting of the private and foreign sectors initial y starts with zero currency units. It is important to realize that after creating a new currency the government must first spend currency units into the economy before they can be used: without currency units the private sector could not even pay taxes! A government that has its own freely floating currency can create a much money as it wants. It does not need tax receipts to finance its spending, and any money it spends into the economy above that collected in taxes represents income for the private sector. The model show that the government initially created 9 trillion money units, but spent only six trillion into the economy. The six trillion showed up as a government deficit but as wealth in the non-government sector.
Since the government can create as many money units as it wishes and transfer them to the private sector to ensure an adequate level of demand in the in the economy, austerity is unnecessary: money is available, though real resource may be scarce. This also shows that the government can contribute actively towards the creation of prosperity.
Please note that this model was originally created by Gene Bellinger, IM 3206, from which this version was cloned.
Austerity Prosperity Economics Macroeconomics Modern Monetary Theory MMT
- 5 years 3 days ago
Clone of Clone of Investment vs Austerity v3
garywolf
Model supporting research of investment vs. austerity implications. Please refer to additional information on the SystemsWiki Focus Page and Modern Money & Public Purpose Video.
- 6 years 7 months ago
Clone of Investment vs Austerity v3
Scott Fortmann-Roe
Model supporting research of investment vs. austerity implications. Please refer to additional information on the SystemsWiki Focus Page and Modern Money & Public Purpose Video.
- 6 years 3 months ago
Clone of Investment vs Austerity v3
VMV
Model supporting research of investment vs. austerity implications. Please refer to additional information on the SystemsWiki Focus Page and Modern Money & Public Purpose Video.
- 6 years 1 week ago
Clone of Investment vs Austerity v3
Dante Dias Torio
Model supporting research of investment vs. austerity implications. Please refer to additional information on the SystemsWiki Focus Page and Modern Money & Public Purpose Video.
- 4 years 7 months ago
Clone of Investment vs Austerity v3
Lukas Hartwig
Model supporting research of investment vs. austerity implications. Please refer to Modern Money & Public Purpose Video.
- 2 years 1 week ago
Clone of Investment vs Austerity v3
Daniel Fish
Model supporting research of investment vs. austerity implications. Please refer to Modern Money & Public Purpose Video.
Follow us on YouTube, Twitter, LinkedIn and please support Systems Thinking World.
- 2 years 8 months ago
Clone of Investment vs Austerity
Julian Blanc
Model in support of an article being written about the relationship between investment and austerity. See Version 2
See also:* Inv vs Aust Sim [IM-2736]
* Inv & Output 1 [IM-2740]
* Inv & Output 2 [IM-2741]
- 1 month 6 days ago