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
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
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
This digression makes two further comments on the statement on weapons versus other expenditure in the UN report mentioned above. One may return to this post later and go straight on to the post “Discussion of Costs Resumed”, if desired. ... 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