The statements in this post apply particularly to the economic predicament of the 1970’s and 80’s, which may recur under the pressure of modern problems. They do not necessarily hold true for every form of economic malaise; for instance, they would have been inaccurate for the Great Depression of the 1930’s. ... 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
These increases or decreases, it must be emphasised, would be not necessarily absolute, but relative to what real wages would have been, depending on other variables, if the money wage change had not taken place. It is necessary to be reminded constantly that we are dealing with an array of interdependent dynamic variables. ... 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
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
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
In 1964, the ship Alkimos was wrecked on a reef off the coast of Western Australia at a time when our largest city, Perth’s, suburban sprawl had not reached that far. The ship was Greek but had a varied and colourful history, including on-board murders and criminal activity, under different names and flags. ... Read more
Structuring, or realising, wealth into goods and services is currently called production or output, as though wealth were being created. In fact, this structuring or realisation is part of the process of throughput of wealth.
The use of goods and services, now called consumption in the sense of being opposite to “production”, is really a subsequent process in the throughput chain whereby wealth is degraded into waste matter and heat whence it may be renewed. ... Read more
In setting forth the ideas in the book ‘Economics for a Round Earth’ I did not expect that they would rapidly be taken up as policy and that the global economy would thus be set on a radically different, sustainable path, in time to avoid pain. ... Read more