Circularity in Economic models including Exports and Imports
Simple Economy: Model 8
In summary, lower rates of consumption (based on production) result in higher rates of production and consumption in the long-run.
Social Justice, Epidemiology and Health Inequalities
Perhaps the following thought experiment helps to understand how this is possible.If you imagine two drawers, each representing an account. The first drawer contains 100 gold coins and the second is empty. Also imagine that there are no other gold coins available at this time. Let's call the first drawer account A and the second account B. Now if you want to transfer 30 gold coins from account A to account B, you would actually first have to take the coins out of drawer A and then place them into drawer B. Account A will then necessarily have 30 coins less in it. Now imagine accounts A and B are held in a computer as electronic money. Instead of 100 gold coins, account A only contains the computer generated number '100' and account B shows '0'. To get account B to show a balance of '30', it would now simple be necessary to change the '0' to '30' on the computer. The need to raid account A and to take '30' from the number '100' before you could credit account B does not exist. Money is created as it is entered in B's account irrespective of whether A's account is debited before or after this process or not at
Keynes General Theory
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
Multilevel theory of behavior
Simple Economy: Model 5
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.
Killing the Host
Simple Economy: Model 2
The simulation demonstrates how differing rates of consumption affect Savings.
Simple Economy: Model 7
In summary, government "spending" tends to slow growth of production and consumption.
MANAGING FULL EMPLOYMENT
MODERN MONETARY THEORY SHOWS HOW FULL EMPLOYMENT CAN BE ACHIEVED!
POTENTIAL GDP is a level of overall spending - by the government and the non-government sector - at which there is full employment. If the economy is not operating at its potential, then the private sector has failed to invested or spend enough to generate the necessary growth nor has income from net exports contributed enough. This only leaves the government to close the spending gap. Conceptually, a government disposing of its own freely floating currency could act using two powerful tools - spending in excess of tax revenue, and taxation - to ensure that the gap between the actual economic activity and potential GDP is quickly closed. Achieving the full employment that prevailed for 30 years between 1945 and 1975 in western economies is definitely possible!
Inequality Crisis and Secular Cycles
Dynastic Cycles Structure
Odum Money and Energy Flows
Austerity vs Prosperity v0
Matilde's Coffee Pods ISD Humanities v 1.02
Simple Economy: Model 3
In summary, lower fractional rates of consumption (based on production) result in higher levels of Savings.
Health System Efficiency
Investment and Output 2
Simplified Keen Goodwin Minsky Financial Instability model
Bubbles and Feedback Loops
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!