THE FULL CIRCULAR FLOW

Monday 21 November 2011

Closed Market System
(Credit: http://www.eoearth.org/article/Neoclassical_economic_theory)
This image depicts the variables in our current economic system, but take note that there is no environmental variable, no mention of resources as non renewable, the model is predicated on the assumption that those inputs will never run out. These outside forces that threaten the stability of the closed system are considered exogenous, and thus not incorporated into the market flow.
How can this even be deemed as acceptable in today’s reality? Damage to ecological stability is an essential cost of production that could lead to the self-decimation of our species and yet economic theory hasn’t even been modified to account for the real effects of our global market system. How many tons of coal were burned to power the production of this project that was then shipped via a massive form of transport completely reliant upon oil, emitting carbon dioxide into the atmosphere that stays there for a hundred years rapidly warming the biosphere in which human life is preciously cradled? Am I supposed to ignore this phenomena of truth?
Religious Narrative was the original attempt to explain the unexplainable by the human species.
Sometime after the random mutation leading to the repositioned Larynx and the development of language human beings became conscious of themselves, conscious of an inner self that is, and they began to ask those questions which are inherent to our species.

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