Raoul Kennedy

Economic Distortion Dynamics Raoul Kennedy

What if we had a rough reference to make sense of the world and why some bad things happen. Drawing from economic theory and system dynamics, a conceptual model is explored in which economic distortions stem from returns that are disproportionate to cost-bearing. Policies responsible for such distortions can generate feedback loops that raise the risk of dislocation and tragic outcomes, including shortages and food crises, environmental damage, oversupply and waste, unjust wealth and impoverishment, asset bubble-crash cycles, violence, and human rights abuses. Moreover, the dynamics suggest an unsustainable path which threatens hardship for those of us who are dependent upon the current paradigm. Insights into complex economic systems are a vital first step towards sustainability and social justice. The potential dangers of certain interventions reviewed here invoke the precautionary principle-avoiding policy action when the impacts are systemic. It is hoped that the ideas presented can serve as a resource for anyone seeking a bigger picture in planning for the future.