Misnamed “Keynesian” deficit financing policies applied in more recent years to “recessions” have contributed more and more to inflation and less and less to alleviating unemployment.
These policies have come to exacerbate the very disease, unemployment, they were meant to remedy. … Read more
The throughput chain comprises several “links”, different processes that follow one another but do not all necessarily take place at the same rate. The processes commonly are: the extraction or controlling of wealth; its rendering or structuring into saleable goods and services; the sale of those goods and services; and their subsequent degradation into waste matter from which wealth may be renewed. … Read more
People working overtime for extra pay, or purchasing more goods more often, or performing any act that increases their rates of consumption, may justify themselves or be justified by governments or the media with the argument (consistent with current economic thinking) that by doing so they are boosting the economy, creating wealth, giving employment to people. … Read more
Before going on any further it is necessary to discuss the term aggregate demand.
Aggregate demand is the sum of two components – investment spending and consumer spending. It would be better if these were treated separately as independent channels through which money flows, since the relation between them is by no means constant in the sense that they can be lumped together and boosted or damped down together. … Read more
Governments in many less perfluent countries have borrowed thousands of millions of dollars in attempting to achieve permanent increases in the level of national economic activity and living standards.
The belief was that by borrowing “wealth” from the “rich” nations, they would be able to use it to generate more “wealth” of their own, enough to pay back the original “wealth” with interest and still leave enough to make their own country permanently wealthier. … Read more
In a feat of enterprise and endurance, Hans Tholstrup drove a solar-powered car across Australia in 1979. The car had a large flat roof arrayed with photoelectric cells that turned the sun’s radiation into electricity and charged a battery.
Solar radiation cannot deliver more than about a kilowatt, roughly an old-fashioned horsepower, per square metre at ground level, and it usually delivers less. … Read more
A new definition of costs is also required. The term at present is muddled and confused in general usage.
Wealth loss versus Throughput Reduction
Any outlay of money in a national economy is regarded as a “cost” to the nation in the sense of some loss of wealth. … 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
First, it will be noted that things that common sense tells us are always good, such as efficient government or nuclear disarmament, or always bad, such as strikes or cartels, may actually be bed sometimes and good other times depending on the circumstances. … 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