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

Stock-flow consistent model with private debt provided by the financial sector. Growth in model is predicated on Business sector growth in the wage bill which is funded by internal finance if available, while the remainder is financed by credit, i.e., external finance (an exogenous variable in the model). Business equity is the difference of the Business's current account and business debt (i.e., capital account). Firms are passive in this model--they do not save and pass all revenue, and external financing, to households minus repayments on debt--which is an exogenous variable in the model.

Trying to look objectively how tax changes to the wealthiest could lower debt and any impact to the economy.

Very simple causal loop diagram of a loan, which can be any loan. However, when the loan is a fixed amount, that needs to be repaid in x periods, you can cross out the 'taking out' arrow from debt to bank account.

Very simple causal loop diagram of a loan, which can be any loan. However, when the loan is a fixed amount, that needs to be repaid in x periods, you can cross out the 'taking out' arrow from debt to bank account.

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

Stock-flow consistent model with private debt provided by the financial sector. Growth in model is predicated on Business sector growth in the wage bill which is funded by internal finance if available, while the remainder is financed by credit, i.e., external finance (an exogenous variable in the model). Business equity is the difference of the Business's current account and business debt (i.e., capital account). Firms are passive in this model--they do not save and pass all revenue, and external financing, to households minus repayments on debt--which is an exogenous variable in the model.