The plan which eventually became acceptable, more readily under pressure of the Second World War, was that of deficit spending, whereby the government deliberately set out to spend more than they received through taxes, duties, and charges. The gap could be filled by borrowing, thereby mobilising stagnant funds. ... Read more
To repeat in another way a point discussed earlier, there is an achievable optimum flow of money through the aggregate income (wages plus social welfare) channel in relation to the flow through other channels. The optimum state is characterised in two ways: (i) full employment, that is no involuntary employment of able people, prevails; (ii) economic activity, the wealth throughput rate, is at the maximum possible within the constraints imposed by other factors. ... Read more
During the 1970’s and 1980’s governments and people generally in the more perfluent nations were waiting for an economic “upturn” or “recovery” to reduce what had become chronic high unemployment. The underlying assumption was that the high throughput-increase rates, the so-called “economic growth” rates of the 1950’s and 1960’s, were normal and that the more sluggish throughput-increase (TI) rates of latter years were an abnormal phenomenon that could be expected to speed up in time through this or that brilliant policy initiative or going back to the early economics of the eighteenth and nineteenth centuries; or by eliminating (depending on your point of view) businessmen, unions, migrants, taxes, civil servants, or computers; or just by waiting. ... Read more
Another misleading idea used to be that capitalism and communism represented opposite extremes, opposite poles of economic theory and practice.
Proponents of communism used to believe, inter alia, that if only the world were communist there would be no more environmental degradation, no more pollution, no more problems in that area. ... Read more
This technology promises to expand the amount of fissionable fuel available from natural uranium by a factor of about 60, by “breeding” more fuel than it consumes. This doesn’t change the non-renewable nature of the total uranium resource, but it does promise to make it so abundant as to encourage a casual attitude towards energy conservation. ... Read more
It is possible for some time to consume a resource faster than its renewal rate, just as a business can for some time consume its accumulated money capital faster than it takes money in (this is only an illustration and does not confuse money with wealth). ... Read more
Current economics assumes a world of unlimited resources, unlimited wealth. No matter how rapidly a resource is used, either (i) “They” will always find more, or (ii) substitute resources will always be found to serve to any required extent as well or better in place of the depleted resource. ... Read more
An answer must be found to the problems of aging populations in more perfluent countries.
It has been suggested that efforts should be made to achieve and sustain a higher birthrate in the more perfluent countries, to lower the median age and create more taxable workers and more throughput to support ever rising pension demands. ... Read more
It has not been the aim of these posts to provide detailed remedies for every current problem in or related to economics.
It has only been my purpose to outline a more practical and realistic relationship between the human economy and the world we live in, one which favours life over death, progress and enhancement over degeneration. ... Read more