Real wage and material living standard will be treated as different terms for the same variable.
The real wage, however, is not the same as the money wage. The real wage is the access to goods and services given to a worker in exchange for their labour. ... Read more
The inadequate or wrong concepts of current economics lead to a number of misconceptions, some examples of which will be given.
“Soak the Rich”
The “soak the rich” taxation policy sometimes advocated or practiced by the political left is based on a confusion about the nature of wealth. ... Read more
The fierce conflicts between conservationists on one side and workers, industrialists, and some politicians on the other arise from a misconception.
Both parties in fact desire the same goal – economic well-being. But the latter and many of the former believe that environmental conservation and economic progress are conflicting aims, between which a balance or compromise must be found. ... Read more
The direct addition of value inflation to the rate of price increases is quite small. The larger effect arises from secondary influences, in whose shaping human psychology plays an important part. These influences are triggered by the small value inflation component and its corollary, a slowing of the rate of net throughput increase relative to gross throughput increase. ... Read more
Good Trends, Not Good Conditions
It is not the intention in this blog to establish a perfect world of perfect conditions. Such a thing has been imagined and described by many in the past, but it must always remain an abstract possibility in the indefinite future. ... Read more
This post describes events in an isolated city unfamiliar to many, but it has lessons for countless major cities around the world facing similar issues.
In the remote city of Perth, Western Australia, a campaign was waged until March 2017 against a big highway project called ‘Roe 8’. ... Read more
When dealing with economics, we are confronted by a large array of interdependent static and dynamic variables. A change in one effects changes in all, which in turn affect the variable first changed, through its interdependence with the rest.
Cybernetics is perhaps most appropriate for the treatment of economic matters. ... Read more
People are agents of throughput and the younger, healthier and less resistant to change are the people (for a given population, state of technology, and resource availability), then the larger and better quality the throughput they can achieve.
In more perfluent countries, in recent years, several factors have combined to effect a steady increase in the average age of the population. ... Read more
Public sector employment and transfer payments are limited by the amount of revenue which can be raised, which in turn is limited by how much the private sector can provide without ceasing to be viable, or how much can be borrowed without creating a “deficit bomb”. ... Read more
Another indirect adverse effect of environmental degradation on economic well-being arises from the effect of the degradation on people’s perception of their economic condition.
A further illustration of the erroneously perceived conflict between environmental conservation and economic well-being lies in this frequent reaction to some piece of environmental devastation: “Oh, well, at least it creates jobs for some people who wouldn’t have one otherwise.”
Certainly the degradation will keep some people busy for a while, but because of the depletion of the resource on which their jobs depend, there will be a net loss of jobs. ... Read more