Based on the original A Short Course of Economic Science  text  and Pilyugina's 2019  article
Based on the original A Short Course of Economic Science text and Pilyugina's 2019 article
This model illustrates the current practice and consequences of government spending. Following the
direction of the arrows from right to left the model shows the following sequence
based on current practice:

 Government
Spending at a certain point leads to spending in excess of tax receipts. This
w
This model illustrates the current practice and consequences of government spending. Following the direction of the arrows from right to left the model shows the following sequence based on current practice:

Government Spending at a certain point leads to spending in excess of tax receipts. This will automatically lead to the issue of treasuries in the belief that the excess spending must be financed by borrowing (although the government has the capacity to create  money). This in turn will increase the national debt.

 Consequences that follow from this practice:

1) That national debt increases whenever the government spends in excess of tax receipts.

2) That the government must pay interest on the debt issued, which in turn increases and reinforces the need for government spending.

3) That the interest paid on treasuries will increase private sector income.

There is an alternative view, supported by Modern Monetary Theory, of how government spending can proceed. Please see this  Insight: 

https://insightmaker.com/insight/19954

  Goodwin Model:   This is a basic version of the Goodwin Model based on Kaoru Yamagushi (2013),  Money and Macroeconomic Dynamics , Chapter 4.5 ( link )     Equilibrium conditions:   Labor Supply  = 100  Devation from the equilibrium conditions generates growth cycles.
Goodwin Model:
This is a basic version of the Goodwin Model based on Kaoru Yamagushi (2013), Money and Macroeconomic Dynamics, Chapter 4.5 (link)

Equilibrium conditions:
  • Labor Supply = 100
Devation from the equilibrium conditions generates growth cycles.
WIP Launchpad (TufteA3) of Bogdanov's Tektology general theory of organization linked to the modern (or historical?) organization of biology and political economy. Should also address the specialised organisation of the pursuit of knowledge and learning in the fullness of time
WIP Launchpad (TufteA3) of Bogdanov's Tektology general theory of organization linked to the modern (or historical?) organization of biology and political economy. Should also address the specialised organisation of the pursuit of knowledge and learning in the fullness of time
From Schluter et al 2017  article  A framework for mapping and comparing behavioural theories in models of social-ecological systems COMSeS2017  video .   See also Balke and Gilbert 2014 JASSS  article  How do agents make decisions? (recommended by Kurt Kreuger U of S)
From Schluter et al 2017 article A framework for mapping and comparing behavioural theories in models of social-ecological systems COMSeS2017 video. See also Balke and Gilbert 2014 JASSS article How do agents make decisions? (recommended by Kurt Kreuger U of S)
 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

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

 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 lea

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!

Clone of Pesticide Use in Central America for Lab work        This model is an attempt to simulate what is commonly referred to as the “pesticide treadmill” in agriculture and how it played out in the cotton industry in Central America after the Second World War until around the 1990s.     The cotto
Clone of Pesticide Use in Central America for Lab work


This model is an attempt to simulate what is commonly referred to as the “pesticide treadmill” in agriculture and how it played out in the cotton industry in Central America after the Second World War until around the 1990s.

The cotton industry expanded dramatically in Central America after WW2, increasing from 20,000 hectares to 463,000 in the late 1970s. This expansion was accompanied by a huge increase in industrial pesticide application which would eventually become the downfall of the industry.

The primary pest for cotton production, bol weevil, became increasingly resistant to chemical pesticides as they were applied each year. The application of pesticides also caused new pests to appear, such as leafworms, cotton aphids and whitefly, which in turn further fuelled increased application of pesticides. 

The treadmill resulted in massive increases in pesticide applications: in the early years they were only applied a few times per season, but this application rose to up to 40 applications per season by the 1970s; accounting for over 50% of the costs of production in some regions. 

The skyrocketing costs associated with increasing pesticide use were one of the key factors that led to the dramatic decline of the cotton industry in Central America: decreasing from its peak in the 1970s to less than 100,000 hectares in the 1990s. “In its wake, economic ruin and environmental devastation were left” as once thriving towns became ghost towns, and once fertile soils were wasted, eroded and abandoned (Lappe, 1998). 

Sources: Douglas L. Murray (1994), Cultivating Crisis: The Human Cost of Pesticides in Latin America, pp35-41; Francis Moore Lappe et al (1998), World Hunger: 12 Myths, 2nd Edition, pp54-55.

  Goodwin Model:   This is a basic version of the Goodwin Model based on Kaoru Yamagushi (2013),  Money and Macroeconomic Dynamics , Chapter 4.5 ( link )     Equilibrium conditions:   Labor Supply  = 100  Devation from the equilibrium conditions generates growth cycles.
Goodwin Model:
This is a basic version of the Goodwin Model based on Kaoru Yamagushi (2013), Money and Macroeconomic Dynamics, Chapter 4.5 (link)

Equilibrium conditions:
  • Labor Supply = 100
Devation from the equilibrium conditions generates growth cycles.
Clone of Pesticide Use in Central America for Lab work        This model is an attempt to simulate what is commonly referred to as the “pesticide treadmill” in agriculture and how it played out in the cotton industry in Central America after the Second World War until around the 1990s.     The cotto
Clone of Pesticide Use in Central America for Lab work


This model is an attempt to simulate what is commonly referred to as the “pesticide treadmill” in agriculture and how it played out in the cotton industry in Central America after the Second World War until around the 1990s.

The cotton industry expanded dramatically in Central America after WW2, increasing from 20,000 hectares to 463,000 in the late 1970s. This expansion was accompanied by a huge increase in industrial pesticide application which would eventually become the downfall of the industry.

The primary pest for cotton production, bol weevil, became increasingly resistant to chemical pesticides as they were applied each year. The application of pesticides also caused new pests to appear, such as leafworms, cotton aphids and whitefly, which in turn further fuelled increased application of pesticides. 

The treadmill resulted in massive increases in pesticide applications: in the early years they were only applied a few times per season, but this application rose to up to 40 applications per season by the 1970s; accounting for over 50% of the costs of production in some regions. 

The skyrocketing costs associated with increasing pesticide use were one of the key factors that led to the dramatic decline of the cotton industry in Central America: decreasing from its peak in the 1970s to less than 100,000 hectares in the 1990s. “In its wake, economic ruin and environmental devastation were left” as once thriving towns became ghost towns, and once fertile soils were wasted, eroded and abandoned (Lappe, 1998). 

Sources: Douglas L. Murray (1994), Cultivating Crisis: The Human Cost of Pesticides in Latin America, pp35-41; Francis Moore Lappe et al (1998), World Hunger: 12 Myths, 2nd Edition, pp54-55.

 Goodwin cycle  IM-2010  with debt and taxes added, modified from Steve Keen's illustration of Hyman Minsky's Financial Instability Hypothesis "stability begets instability". This can be extended by adding the Ponzi effect of borrowing for speculative investment.

Goodwin cycle IM-2010 with debt and taxes added, modified from Steve Keen's illustration of Hyman Minsky's Financial Instability Hypothesis "stability begets instability". This can be extended by adding the Ponzi effect of borrowing for speculative investment.

Circular equations WIP for Runy.    Added several versions of the model. Added a flow to make C increase. Added a factor to be able to change the value 0.5. Older version cloned at  IM-46280
Circular equations WIP for Runy.

Added several versions of the model. Added a flow to make C increase. Added a factor to be able to change the value 0.5. Older version cloned at IM-46280
WIP Overview model structures of Khalid Saeed's 2014  WPI paper  Jay
Forrester’s Disruptive Models of Economic Behavior  See also General SD and Macroeconomics CLDs  IM-168865
WIP Overview model structures of Khalid Saeed's 2014 WPI paper Jay Forrester’s Disruptive Models of Economic Behavior  See also General SD and Macroeconomics CLDs IM-168865
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.")  This model has one significant difference from Model 4. The  fractional consumption rat
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.")

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.
Investigations into the relationships responsible for the success and failure of nations. This investigation was prompted after reading numerous references on the subject and perceiving that *Why Nations Fail: The Origins of Power, Prosperity, and Poverty* by Acemoglu and Robinson seem to make a gre
Investigations into the relationships responsible for the success and failure of nations. This investigation was prompted after reading numerous references on the subject and perceiving that *Why Nations Fail: The Origins of Power, Prosperity, and Poverty* by Acemoglu and Robinson seem to make a great deal of sense.
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
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.
 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..

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 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
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.
 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

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? 

Book Summary of The Great Transformation by Karl Polanyi see  Wikipedia  . See also more Karl Polanyi ideas  IM-181325
Book Summary of The Great Transformation by Karl Polanyi see Wikipedia . See also more Karl Polanyi ideas IM-181325
WIP Summary of MIchael Hudson's  Book  Killing the Host: How Financial Parasites and Debt destroy the Global Economy 
WIP Summary of MIchael Hudson's Book Killing the Host: How Financial Parasites and Debt destroy the Global Economy