Tag Archives: throughput
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
A magazine article cited, as one reason for improving safety in the home and reducing deaths and injuries to children, the argument that the deaths and injuries were a cost to the nation because of the loss of “production” of goods and services which those children, had they become healthy adults, would have accomplished in their lifetime. ... Read more
Real wage and material living standard will be treated as different terms for the same variable.
The real wage, however, is not the same as the money wage. The real wage is the access to goods and services given to a worker in exchange for their labour. ... Read more
The inadequate or wrong concepts of current economics lead to a number of misconceptions, some examples of which will be given.
“Soak the Rich”
The “soak the rich” taxation policy sometimes advocated or practiced by the political left is based on a confusion about the nature of wealth. ... Read more
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 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
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