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
To come back to the subject of capitalism versus communism, the real extreme, the true opposite polarity, would be between flat-earth economics and a new economics, round-earth economics. The latter not only assumes the earth’s capacity as a source and sink to be limited, but incorporates these limits as directly relevant and determinative in every sphere of economic life. … 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
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
I was reading a popular news magazine last week and two stories followed each other directly. They described events in two neighbouring continents, North and South America. Yet they might have been describing events on two remotely separated planets.
The first story was about an Italian car-industry expert who has, in the past few years, restored the Chrysler motor company to profitability. … 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
An answer must be found to the problems of aging populations in more perfluent countries.
It has been suggested that efforts should be made to achieve and sustain a higher birthrate in the more perfluent countries, to lower the median age and create more taxable workers and more throughput to support ever rising pension demands. … Read more
Another misconception held by many in both “rich” and “poor” countries is that the “rich” should go on making and using ever more goods and services, thereby “creating wealth” that can somehow find its way to the “poor” nations, making them “richer”. … Read more
A fault of flat earth economics as practiced in free enterprise economies is that it chops a nation’s economy into sections that are too often treated as being self-contained and independent of other sections. This is not a useful or realistic view. … Read more
Achieving a sustainable world economy would be nothing less than a great step in human evolution, comparable with the mastery of fire or the development of settled agriculture as opposed to hunting and gathering. It concerns the whole world and needs to be tackled on a world, not just a national, basis. … Read more