Are Resource Costs Macroeconomically seen Costs?

Kai Neumann

Modell aus Perspektive des Faktors Spending Power

PI

This beginning of the model shows the usual view that the increase of resource prices lowers the spending power which lowers the consumption which balances the price. Two balanced feedback loops. But, ....

Modell aus Perspektive des Faktors Spending Power

PI

... if we widen the system's boundary we can look what the increase of resource prices actually means: Technical efforts are taken and even politically motivated price increases lead to spending power elsewhere that could help our jobs and spending power here. But, ...

Modell aus Perspektive des Faktors Spending Power

PI

... if we look further we have to realize that the goods we export today face more and more competition from other countries that invest into education and develop and produce high quality products as well.

So in the end we should transform into a sustainable country not just for the sake of our children and grandchildren but also for our current economy and our own spending power.