A simple forecasting model of the economy:
This model includes factory output, the services sector, the military, the government, the banking system,
and the labor force. The model also includes the birth rate, the death rate, and taxes. The detailed models inside
of each block are not shown at this level.
Below is shown the results of a simulation of the above economy with a national debt that is under control.
The horizontal axis shows time. The vertical axis shows wealth. Note how the assets generated by the economy increase
over time.
Below is shown the simulation results of the same economy with a slightly higher national debt.
Note how the assets of the economy are now depressed. Bailouts by the printing press are shown in red.
