The Structure of Our Social System

A model in the form of a block and flow diagram defines what macroeconomics is and how it works.

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The model shows the circulation of money around our social system and it also shows the various goods, services, access rights, interest, taxes, etc which are in return for these money flows. The model has several other forms including a mechanical one in the attachment. This paper and model with photographs should be built and used for introducing students to our social system of macroeconomics for a whole country.

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Photo of David Chester
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Erin, the mechanical model is not difficult to build and might be part of a class project. But to answer your question, a civics teacher who has found that this model is a good way of describing of what our society consists and how it works, will use the model to add interest to the rather dry aspect of the national economy.  Alternately a teacher of maths would find that the associated equations and their solution easily illustrated by this model and use it to show an application for simultaneous equation solving.  If you haven't yet tried it please go to one of the attached MODEL s and then run through the paper to see the photographs of the model that I built.

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Who do you imagine might use this model? And how? 

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Since the days of Adam Smith and David Ricardo, very little progress has been made in modelling the whole of our social system. Attempts to do this have either been oversimplified and show only a part of the whole thing, or when computing it they have become so complicated that one cannot easily understand what the results provide. After not finding much progress on the general problem, the author decided to begin afresh, and the resulting model, and analyses in the book, are the result. Today there is so much criticism about the lack of a good way for treating this subject, that macroeconomics continues to be dismal, unclear and very confused. This logical, formal and scientific approach provides a sensible solution which is relatively easy to understand.

Photo of David Chester
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Due to some doubts about whether the diagrammatic model was correctly received I sent it several times! It is included with the attachment, which has 3 photographs in addition and an explanation of how to build the equivalent mechanical version.

For those (deeper-thinking teachers) who really want to better understand the implications of this way of presenting theoretical macroeconomics, I recommend my recent book: "Consequential Macroeconomics--Rationalizing About How Our social System Works" . Write to me at   chesterdh@hotmail.com  for an e-copy, and tell me why you are interested.