Our actions are based on our beliefs and the results of those actions are the basis for our beliefs. The difficulty we create for ourselves is that we make assumptions as to how to interpret the results we select based on our beliefs. As a result we are often operating on a flawed perspective of reality.
Use a bathtub model to investigate the manner in which inflows and outflows govern the quantity of a stock. Extend the structure to create and investigate the relationships of a goal seeking balancing loop.
While all things are related for a particular situation all things are not relevant. We need to develop a simplified model of reality which depicts those interactions which are responsible for the patterns of behavior and current situation. We want the simplest model which enables the requisite understanding. This is no easy task though.
OK, we have a problem. Yet, do we really know what the problem is? More often than not we look at the symptoms, consider them the problem and attempt to fix them. This actually dooms us to failure because they're only symptoms.
There are things we can influence and usually a broader array of things we are concerned about though can't influence. It's important to know the differerence otherwise we waste our energies trying to change things we have no influence over.
The issue of increasing private and government debt to banks is a major
concern after the financial crisis of 2008 (see Figure at link given below). In order to
understand why our society and government is increasingly indebted to banks we
need to understand how our current money system works and why we need a
continuous infusion of new money in a growing economy. “Why We Are Increasingly
Indebted To Banks?” investigates the reasons behind this and suggest a possible
solution.
This Savings Model is the third in the series. It illustrates the difference in savings over time for a doctor or for a skilled worker who went to a trade school.
