#economics #economic-framework #analysis

idea

Economics are of a higher level than the underlying physical mechanisms. What's more, economics are highly conventioned. These conventions are hidding the underlying mechanisms of the physics powering the economics. Therefore analyzing a system through its economics is borned to produce limited or erroneous results. It is necessary to take into account the actual underlying physical system.

For example, inflation can cause GDP to grow, while the actual physical exchange of goods is decreasing.

There are multiple illustrations to that:

• decreasing retirement pensions is not just a problem of giving more money to retirees, but a problem of creating enough surplus from the working class to provide to the retirees.

• more examples

links

While looking at Collapse, it's very important to remember that adding money to the system won't compensate for the finitude of the world.

references

Jean Marc Jancovici / interview lors du colloque Risque Pays de Coface - 16/02/2023

La decroissance des flux physiques est inexorable. La decroissance economique, elle sera ce que seront les conventions.

[Si] vous avez moins de transformation de sable en verre [...] vous pouvez decider que on valorise le verre le double de l'annee precedente, auquel cas ca ne pose pas de probleme d'avoir un PIB croissant, mais pour autant ca ne fera pas plus de verre par personne.

La grande distribution ca fait un peu plus d'un an qu'elle voit les achats augementer en valeur et diminuer en volume. C'est l'un des effets de l'inflation