Tag Archives: wealth

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

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

Interest Rates and Ratio Distortion

It is necessary for a lender of money to charge interest because the purchasing power of each money unit is generally expected to fall with time. This has been the trend historically and the very operation of the economy tends to make it so.  ... Read more

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

Global Inequalities in Wealth

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

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