Economic Multipliers

Do you know what these are?

These determine whether we CREATE wealth in systems.

I'm not going to tell you what these are (today anyway). You may already know. I am just going to put a short piece of text in here that I wrote on May 5, 2010 regarding this site:


' ... if a house burns down and needs to be rebuilt, if the building and contents are properly insured, the owners will generate great economic activity in the community they live in. But the insurance company will have to ‘on average’ cover that cost. The system as a whole ‘technically’ lost the economic multipliers that went along with that base of wealth.

When people do not understand the concept of and value of wealth retention (in conjunction with building NEW bases of wealth), they also do not understand how the system as a whole can lose economic multipliers.

Now, most people know nothing about economic multipliers (and they are not YET mentioned in any of the thinking pieces) but they are lying around all over the place in the pieces I wrote ...'


People who understand economic multipliers usually understand better than most which activities produce societal wealth and which activities destroy it.