The transport policy referred to in the previous post, where everyone is expected to undertake all journeys in their own big car, has become so entrenched in many countries over the last fifty years that it seems impossible to change or modify. ... 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
In the Great Depression, and in the stagflationary predicament of the 1970’s and 80’s which threatens to recur as a result of the US credit crisis and the run-up in the cost of resources and food, the work could have been available to employ everyone if the money had been available to pay them. ... Read more
There are four main opinions on the subject of global warming:
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1) It’s not happening.
2) It’s happening but has causes other than anthropogenic increases in the atmospheric carbon dioxide content, for instance the precession of the nodes of the earth’s orbit and cyclical variations in the sun’s radiation.
The terms derivative and differential are used here in their mathematical sense, denoting rates of change.
Gross national product and living standard are treated as measures of quantity of wealth. In fact, they are not the quantity but its first derivative or first differential, the rate of wealth-throughput. ... Read more
Partial Accounting: Another spurious “cost” often used as a basis for policy appears as a result of partial accounting. An urban public transport service might be reduced or eliminated on the grounds that the costs of the service are nowhere near covered by passenger fares, and that costs can be reduced and the nation or city thereby enriched by cutting the service. ... 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
A subtle, indirect but nevertheless important further way in which environmental depletion damages economic health is through the extinction of species.
A particular species may not be throughput directly in the sense that a particular economic activity is based directly on that species. ... Read more
The term solar energy means not only the direct radiant energy of the sun, but also its stored forms – plants, animals, fossil fuels.
The sun’s radiant energy is not a resource, but the result of throughput of a resource – that being the sun’s matter. ... Read more