Tag Archives: economy

Value Inflation – the Trigger, not the Bullet

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

Ends and Means

Good Trends, Not Good Conditions

It is not the intention in this blog to establish a perfect world of perfect conditions. Such a thing has been imagined and described by many in the past, but it must always remain an abstract possibility in the indefinite future.  ... Read more

Foreword

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

Demographic Trends and Living Standards

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

Fight Unemployment or Inflation First?

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

The Tyranny of Vested Interests

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

Digression: Depletion and Inflation

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

Digression: “So Long As We Profit, Costs Elsewhere Aren’t Our Problem”?

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

Visual and Noise Pollution

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

Notes on Evolution Not Revolution

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

Page 1 of 512345