System thinking Phil 130

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Transcript System thinking Phil 130

Economics
Group Project
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Brian Palmer
James Murphy
Brennan Beede
Tuiasosopo Nivsulv
The system purpose is to measure the nations
economic productivity. By evaluating the US
Gross Domestic Product you can sense of the
economic health of the country.
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Export
Imports
Consumption
Inflation
Investment
Government Expenditures
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Stock
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Gross Domestic Product
Flows
Production
 Loss of Production
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Interconnections
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Money
Reinforcing Feedback Loop
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An impact to the economic model would be the house market
collapse.
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This occurred in the fall of 2008 was that the housing market became
unstable due to a large amount of home loans going into default. This was
a compound problem due to financial practices that were in place.
Mortgages of several homes were bundled together and sold as securities
on the open market, when these mortgages start to go into default there
was no way to determine who was invested in these bad loans, causing
these type of securities to become unstable and investors stopped investing
in them. As money for new home loans became harder to come by the
market was flooded with a large supply of homes, causing the value of
homes to decline. The farther the value of homes fell the more people let
their home loans go into default, adding to the problem. The prices will
continue to fall until the price of homes become very affordable and then
the demand will return stabilizing the housing market. Other factors come
into play also, there has to be an increase in jobs so that there is money for
people to spend on homes. In this way the housing market and the health
of the economy are tied together.
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Global War
Natural Disasters
Poor Economic News from other Countries