Systeemi selittämään maailmantaloutta | System to explain World Economy

Julkaistu 19.1.2016

Here a demonstration about GoodReason to model a very big challenge: the world wide economy as a compact and simple system model.

The picture below has been created by analyzing the Wikipedia page: Economic system, which has total 98 links in the side bar, to the more specific pages for 7 groups of economical systems.

World Wide Economy (Wiki)

The drawing contains very specific information in order to understand in a nutshell, what is business like in the world. This model works like a small shop with one sales person (the small figure in the lower side).

Contribution from this small study

This kind of model is a simplification about the frightening set of different conflicting theories, which have been doomed to fail in practice. There is communism/socialism and capitalism and many other fundamental theories, which have created much despair for customers and citizens. None of them is perfect. However, any of them can be modeled as a GoodReason system very detailed as a conceptual model or a computable model case by case using Excel and more specific tools.

Teaching economies at universities should be changed to that the students could analyze every theory as a simple model, level by level. Those models should be useful and important for political decision makers for understanding what philosophy and practice is the best to be used in any important situation. Every actor in economy is a system to be analyzed in a generic way, without forgetting its special features.

Using GoodReason, totally new paradigms for economy can be invented and checked, if there only is an idea about that.