It is necessary here to repeat a point made or implied earlier, that the level and rate of change of economic activity and the level of unemployment are to a large extent independent of one another. Not totally independent of course, each is one determinant of the other. ... Read more
By Diana Massam, Secretary, Environmental Communicators’ Orgnanisation (UK)
In ‘Economics for a Round Earth’, Charles Pierce challenges previously accepted economic ideals and methods of management, as fundamentally flawed and outdated. He proposes drastic changes, but stresses that these can only be achieved as a series of progressive trends. ... Read more
This post will cross at a different angle, ground covered already.
The belief is still currently widespread, and held by persons of influence in economic affairs, that a general increase in wages will boost the economy, i.e. increase the throughput rate and its derivative by increasing consumer demand. ... Read more
The Australian Government has recently announced revised, reduced targets for the reduction of greenhouse gas emissions. There has been some objection to this but it should not really be surprising.
Governments around the world have shown that they just don’t get it. ... Read more
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