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
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 more accurate definition of economic growth would be any change in the relation between the throughput and renewal rates, for a given resource for which throughput exceeds renewal, in which change the ratio of the throughput rate to the renewal rate falls, or conversely the ratio of renewal to throughput increases. ... Read more
The plan which eventually became acceptable, more readily under pressure of the Second World War, was that of deficit spending, whereby the government deliberately set out to spend more than they received through taxes, duties, and charges. The gap could be filled by borrowing, thereby mobilising stagnant funds. ... Read more
In terms of physically damaging, poisoning, or depleting the earth’s living environment, there are no such things as visual or noise pollution.
These are red herrings in the sense that, for example, people who object to the noise of rock music, traffic, or children at play, or object to the replacement of an ornamental old building by a stark new one, feel entitled to attach their cause to the environmental cause (feeling licensed by the use of the word “pollution” in describing what they object to), thereby distracting attention from issues of real importance to the living environment and diverting energy that should go into resolving those issues in the environment’s favour. ... Read more
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