Tuesday, September 13, 2011

Money As An Energy Transfer

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This diagram was drawn to show how the growth cycle can be maintained and how it can falter. It was based on a talk by Paul Callaghan that I heard on Radio NZ.

Since then, it has occurred to me that a similar flow chart could be made to show how stored energy from the Sun is passed on from person to person with money acting as a courier. In fact I would not be surprised if a mathematical model could be constructed to show how converted and stored solar energy is used when monetary exchanges take place. It also might reveal blockages when energy transfers are slowed down or diverted away prematurely from the rest of the community by unproductive activities.

The role of technology has a crucial part to play in the energy transfer processes. If we neglect to nurture science and its practical applications, then I think we could easily revert to a comparatively impoverished nation. Food for thought?

The Shape Of Our Society

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This diagram is a bit of a shambles, but I have tried to show my opinion of how English speaking societies have changed in recent times. Feudal/tribal hierarchies have been with us for many thousands of years. Democracy, as we know it today, is a new experiment. It will always be threatened by individuals or minority groups who wish to selfishly return their society back to the unequal situation of the past.

As I see it, a very large Middle Class that supports an equitable distribution of wealth and strong Government infrastructure is an important basis for social stability and wealth creation. When too many merchants, professionals and large asset landowners decide to combine to weaken their government services and bypass the rest of society economically, the social and economic consequences can be bad for all. Unfortunately, New Zealand has experienced this (along with USA the U.K). I think we will have to decide if we wish to let this continue until it gets unbearable for the marginalized or correct our course and restore social and economic equity to re-energize the path to sustainable growth.

I will expand upon this later when I present a graphic way to show how every service we pay for and the goods we buy ultimately affects how we live socially and economically. Every tax and purchase we make activates a relationship with another person or group. If these relationships are mostly within our own community, our community grows stronger socially and economically and enables a reciprocal relationship back to each of us. If too many drop outside this cycle then we will all suffer.