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
People are agents of throughput and the younger, healthier and less resistant to change are the people (for a given population, state of technology, and resource availability), then the larger and better quality the throughput they can achieve.
In more perfluent countries, in recent years, several factors have combined to effect a steady increase in the average age of the population. ... 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
Another indirect adverse effect of environmental degradation on economic well-being arises from the effect of the degradation on people’s perception of their economic condition.
A further illustration of the erroneously perceived conflict between environmental conservation and economic well-being lies in this frequent reaction to some piece of environmental devastation: “Oh, well, at least it creates jobs for some people who wouldn’t have one otherwise.”
Certainly the degradation will keep some people busy for a while, but because of the depletion of the resource on which their jobs depend, there will be a net loss of jobs. ... 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
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
The Great Depression of the 1930’s has been very thoroughly gone over in the literature and there would be no need to mention it here except that it is necessary to describe it in terms of the concepts presented in these posts and to link it with the present day. ... Read more
Throughput of resources, a first derivative of wealth, is of two kinds, gross and net. Net throughput is the flow of goods and services in the economy. Gross throughput is net throughput plus the resources required to extract and process wealth into these goods and services. ... 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
In Australia the federal government is trying to implement an Emissions Trading Scheme to combat global warming. Opponents of this scheme argue that it will cost jobs.
Surely the whole point of trying to slow and stop global warming is that if such warming continues unchecked, it will cost millions of jobs, and lives, worldwide, because of the destructive effects of changing climates and rising sea levels. ... Read more