WIP based on Bill mitchell's blogs

WIP Book summary of Frank Stilwell's 2019 Book, The Political Economy of Inequality, Polity Press podcast and slides

THE BROKEN LINK BETWEEN SUPPLY AND DEMAND CREATES TURBULENT CHAOTIC DESTRUCTION

The existing global capitalistic growth paradigm is totally flawed

Growth in supply and productivity is a summation of variables as is demand ... when the link between them is broken by catastrophic failure in a component the creation of unpredictable chaotic turbulence puts the controls ito a situation that will never return the system to its initial conditions as it is STIC system (Lorenz)

The chaotic turbulence is the result of the concept of infinite bigness this has been the destructive influence on all empires and now shown up by Feigenbaum numbers and Dunbar numbers for neural netwoirks

See Guy Lakeman Bubble Theory for more details on keeping systems within finite working containers (villages communities)

From Walrave ISDC2014 paper Counteracting the success trap in publically owned corporations. Similar to the ordinary (efficiency focussed) and dynamic capabilities (explore) insight described by David Teece

Simulating Hyperinflation for 3650 days.

If private bond holdings are going down and the government is running a big deficit then the central bank has to monetize bonds equal to the deficit plus the decrease in private bond holdings.  We don't show the details of the central bank buying bonds here, just the net results.

See blog at http://howfiatdies.blogspot.com for more on hyperinflation, including a hyperinflation FAQ.

Simple causal loop diagram of a compound interest savings account in Dutch.

Summary of UNEP ecosystems services CBA 2011 article by Wegner and Pascual

WIP Dynamic map from Steve Keen's Minsky at 100 Lecture video and slides and later Emergent Macroeconomics papers

This model shows the operation of a simple economy. It demonstrates the effect of changes in the fractional rate of consumption (or the converse the fractional rate of saving.)

In summary, lower rates of consumption (based on production) result in higher rates of production and consumption in the long-run.

From Bill Mitchell and Warren Mosler December2018 billy blog entry  and mosler's MMT white paper (google docs) 2019. Some highly aggregated stocks and flows and boundaries introduced.

In this Insight I focus on the demand site of the Market and Price model, leaving the supply side out.

Unfortunately, this model only produces the illusion of functioning, but I did manage to get it to give me the graph. However, because of the use of flows, if you change the time step to and the simulation length to anything other than the same numbers, you'll find the graph showing something that looks more exponential. This is due to the function referencing itself in regards to time, so inevitably each time consumption grows it changes the outcome on the other side of the equation. Still, this is a convincing mock up. I added a "45 degree" line so that one could conceivably see (and also change) the difference made by altering the level of autonomous consumption.

This model shows the structure and operation of a simple economy. It can represent economic systems at different levels of abstraction (e.g. a single good, a group of goods, multiple groups, & an "economy.")

In summary, lower rates of consumption (based on production) result in higher rates of production and consumption in the long-run. Rates of consumption over 100% of production will diminish the savings stock and eventually cause rates of production and consumption to fall.

WIP Elements from macroeconomics, neoliberalism and commercial determinants of health frameworks to provide a background to the effects of the universal basic income on health and wellbeing for the first 1000 days. UBI diagram modified from Johnson2021 article Expanded in Insight 2

This is a simplification of the Austerity vs Prosperity model in the hope that it will be easier to understand.

WIP Summary of Miller 2015 PCD article for the Compelling Case for Prevention Project Scoping Study.

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? 

Goodwin business cycle model, modified from Keen and Blatt

This model compares direct exchange prices to money prices. It demonstrates the distortion that monetary expansion or contraction has on the information contained in monetary pricing.

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! 

WIP Clone of Conceptualizing Capitalism Insight to summarise Thorstein Veblen's writings on the Nature of Capital and other Institutional economics concepts

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