Model supporting research of investment vs. austerity implications. Please refer to Modern Money & Public Purpose Video.

First Basic Macro economic model

This model is an attempt to understand the interactions within an economy in an attempt to determine where the leverage points are to stimulate an economy.

This is a Virtual Systemic Inquiry (VSI) Project. Please refer to the Stimulating an Economy focus page.

A model to gain understanding of the causes and effects of a population's interest in engineering.

Fig 2 to 14 Land Use added to 4 Quadrant Model SD Model from Eskanasi 2014  thesis 

Model in support of an article being written about the relationship between investment and austerity. See Version 2

See also:
* Inv vs Aust Sim [IM-2736]
* Inv & Output 1 [IM-2740]
* Inv & Output 2 [IM-2741]

Neoliberalism uses a deceptive narrative to declare that money the government spends into the economy in excesses of the taxes it collects creates a ‘government debt’. In fact, the money the government spends into the economy in excess of the taxes is an income, a benefit for the private sector. When the government issues bonds, the money the private sector uses to buy them via banks comes from a residual cushion of dollars that the government already spent into the economy but has not yet taxed back.  If this were not the case, if the government had taxed back all the money it spent into the economy, then the economy could not function. There would be no dollars in the economy, since the government is the sole supplier of U.S. dollars! In the doted rectangle in the graph you can see that the dollars paid to the government for bonds sits in a dollar asset account. When the government issues bonds it simply provides the public and institutions with a desirable money substitute that pays interest i.e. Treasury bonds. It is a swap of one kind of financial asset for another. To register this swap the government debits the dollar asset account and credits the bond account.  When the time comes to redeem (take back) the bonds, all the government does is revers the swap, and that’s all!  When you look at the total amount of finacial assets in the private sector,  these remain constant at $ 25 BN  after the payment of $ 5 BN taxes. This implies that  no lending of financial assets of the private sector to the government has taken place during the swap operation. The money was always there. The debt mountain is an illusion!

This is a reconstruction of the SIMM model presented in Chapter 2 of Feedback Economics (Contemporary Systems Thinking)

A simple model of economic growth where a government taxes the economy, and spends it on capital and revenue goods.

Model of Covid-19 Outbreak in Burnie, Tasmania

When reported COVID-19 cases begin to show a rapid increase, the government will initiate control policies to deal with the spread.As the number of people tested increases and measures such as isolation and medical assistance are implemented, the number of people infected will decline rapidly.Therefore, the government's policy is to reduce and eliminate sources of transmission by increasing the number of tests and initiating control measures.At the same time, it also shows the negative impact of economic growth, which according to the model will stop in the next 20 weeks.

A sample model for class discussion modeling COVID-19 outbreaks and responses from government with the effect on the local economy.  Govt policy is dependent on reported COVID-19 cases, which in turn depend on testing rates less those who recover

The statement that there can be no economic activity without  energy and that fossil fuels are finite contrasts with the fact that money is not finite and can be created by governments via their central banks at zero marginal cost whenever needed.

An important fact about COAL, GAS and OIL (especially when produced via fracking) is that their net energy ratios are falling rapidly. In other words the energy needed to extract a given quantity of fossil fuels is constantly increasing. The falling ratio 'EROI' (Energy Return on Energy Invested ) provides yet another warning that we can no longer rely on fossil fuels to power our economies. In 1940 it took the energy of only one barrel of oil to extract 100. Today the energy of 1 barrel of oil will yield only 15. We cannot wait until the ratio falls to 1/1 before we invest seriously in alternative sources of energy, because by then industrial society as we know it doday will have ceased to exist. An EROI of 1:1 means that it takes the energy of one barrel of oil to extract one barrel of oil - oil production would simply stop! 

Rich picture trying to explain in detail the economy of Peru.

Model supporting research of investment vs. austerity implications. Please refer to Modern Money & Public Purpose Video.

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Scratch build of a stock-flow consistent model of a closed economy, based on a current transactions matrix