Tag Archives: throughput

Digression: Thrift versus Spendthrift

Merely transferring money into the wages channel, increasing the spending power of consumers without forcing them to borrow, is of course not enough; the spending power must be translated into effective demand, with increased spending and consumption actually taking place – the more the better.  ... Read more

Concepts and Terms – What is ‘wealth’?

The world economy isn’t working as well as it should and could. Some countries that enjoyed for some years near full employment, low interest rates, and a bearable rate of price increases, with fast-rising material living standards, all achieved without anything like current high levels of government and private debt, do so no longer.  ... Read more

Living Standard and Quality of Life

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

Digression: Work and Jobs

The Mitterand socialist government in France during the 1980’s hoped to create tens of thousands of jobs by cutting working hours. The basic working week was to carry the same pay, therefore each hour worked was to carry more pay. The work not done as a result of the reduction in hours per worker was supposed to require the engagement of extra hands to get it done.  ... Read more

Digression: Bad Economics Good for Conservation?

This digression takes another journey over ground traversed in the post “Digression – Resource Consumption, jobs, and ‘Hands Off’ ” and in the Foreword.

In the foregoing discussion of pensions there appears to be a contradiction – the current trend of pension payments threatens severe economic dislocation, but such dislocation slows throughput and conserves wealth.  ... Read more

The Idea of Proportionate Flows Applied to Wages: the Great Depression

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

More Dollars for Conservation?

So, environmental conservation must be the primary goal, and economic well-being depends on it – not the other way round.

That last phrase refers to the spurious argument that economic “progress” as currently understood, i.e., increasing throughput of wealth, provides money which can be spent on conserving the environment.  ... Read more

Evolution Not Revolution

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

Environment versus Economic Progress

The fierce conflicts between conservationists on one side and workers, industrialists, and some politicians on the other arise from a misconception.

Both parties in fact desire the same goal – economic well-being. But the latter and many of the former believe that environmental conservation and economic progress are conflicting aims, between which a balance or compromise must be found.  ... Read more

The Derivatives of Wealth

The terms derivative and differential are used here in their mathematical sense, denoting rates of change.

Gross national product and living standard are treated as measures of quantity of wealth. In fact, they are not the quantity but its first derivative or first differential, the rate of wealth-throughput.  ... Read more

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