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

This is part of series of model implemented from "Thinking in Systems" book by Donella Meadows

Based on 2023 framework from Australian Treasury mapped into the Salutogenesis framework via social wellbeing

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

Adapted from Hartmut Bossel's "System Zoo 3 Simulation Models, Economy, Society, Development."

​Population model where the population is summarized in four age groups (children, parents, older people, old people). Used as a base population model for dealing with issues such as employment, care for the elderly, pensions dynamics, etc.

An initial study of the economics of single use coffee pods.

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.

An initial study of the economics of single use coffee pods.

Bradley initial study of the economics of single use coffee pods.

An initial study of the economics of single use coffee pods.

Goodwin business cycle model, modified from Keen and Blatt

WIP Comparing Univeral Basic Income Guarantee with the Job Guarantee based on comparison articles

An initial study of the economics of single use coffee pods.

Simplification of Prevention Investment Framework (private) IM See WIP integrating with economic view insight (private) and multiscale version IM private

Adapted from Hartmut Bossel's "System Zoo 3 Simulation Models, Economy, Society, Development."

​Population model where the population is summarized in four age groups (children, parents, older people, old people). Used as a base population model for dealing with issues such as employment, care for the elderly, pensions dynamics, etc.

Adapted from Hartmut Bossel's "System Zoo 3 Simulation Models, Economy, Society, Development."

​Population model where the population is summarized in four age groups (children, parents, older people, old people). Used as a base population model for dealing with issues such as employment, care for the elderly, pensions dynamics, etc.

An initial study of the economics of single use coffee pods.

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.

An initial study of the economics of single use coffee pods.

An initial study of the economics of single use coffee pods.

Very basic stock-flow diagram of simple interest with table and graph output in interest, bank account and savings development per year. Initial deposit, interest rate, yearly deposit and withdrawal, and initial balance bank account can all be modified. 

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..