141 Eric Beinhocker, The Origins of Wealth Complexity, and the Radical Remaking of Economics (Cambridge, Massachusettes: Harvard Business School Press, 2006). “Many earlier economists, such as Smith (and Bentham) regarded themselves as philosophers rather than scientists, and the mathematics of the Classical periods is generally limited to a few numerical examples and a bit of algebra, but nothing more sophisticated,” p. 52-7.
142 Eric Beinhocker, The Origins of Wealth Complexity, and the Radical Remaking of Economics (Cambridge, Massachusettes: Harvard Business School Press, 2006). “Many earlier economists, such as Smith (and Bentham) regarded themselves as philosophers rather than scientists, and the mathematics of the Classical periods is generally limited to a few numerical examples and a bit of algebra, but nothing more sophisticated,” p. 33.
143 “GDP only includes goods; GNP does not include goods and services produced by foreign producers, but does include goods and services produced by U.S. firms based abroad. GDP replaced gross national product (GNP) as the primary measure of U.S. production in 1991.”
144 The U.S. national median salary for a stay at home parent with one pre-school child and another at school is $138,095.
145 These figures, based on the median salary of the 25th percentile across four different zip codes in the U.S. were calculated using data provided by:
146 Clifford Cobb, Ted Halstead, and Jonathan Rowe, “If the GDP is Up, Why is America Down?” Atlantic Monthly, 276 (4), October, p. 51-8. Cited from Sally Goerner After the Clockwork Universe: The Emerging Science and Culture of Integral Society (Edinburgh, Scotland: Floris Publishers, 1999), p. 331.
147 Clifford Cobb, Ted Halstead, and Jonathan Rowe, “If the GDP is Up, Why is America Down?” Atlantic Monthly, 276 (4), October, p. 51-8. Cited from Sally Goerner After the Clockwork Universe: The Emerging Science and Culture of Integral Society (Edinburgh, Scotland: Floris Publishers, 1999), p. 331.Comments made by Simon Kuznets appear in the first report to the U.S. Congress in 1934, as reported by Measuring Progress: Annex.
148 Clifford Cobb, Ted Halstead, and Jonathan Rowe, “If the GDP is Up, Why is America Down?” Atlantic Monthly, 276 (4), October, p. 51-8. Cited from Sally Goerner After the Clockwork Universe: The Emerging Science and Culture of Integral Society (Edinburgh, Scotland: Floris Publishers, 1999), p. 331.Comments made by Simon Kuznets appear in the first report to the U.S. Congress in 1934, as reported by Measuring Progress: Annex. As former World Bank economist Herman Daly puts it, “the current national accounting system treats planet Earth as a business in liquidation.” Add pollution to the balance sheet and we appear to be doing even better. Pollution shows up twice as gain: once when the Chemical factory, say, produces it is a byproduct, then again when the nation spend billions of dollars to clean it up in a toxic Superfund site. It shows up again as medical bills rising as a result of dirty air.
149 Robert Kennedy, Jr., from a lecture at a Friends of the Earth Rally (New York, 13 March 1963).
150 Hazel Henderson, Jon Lickerman, and Patrice Flynn Calvert_Henderson Quality of Life Indicators (Calvert Group, 2000). See also, Ethical Markets (White River Junction, Vermont: Chelsea Green Publishing, 2006).
151 Cobb, Halstead, and Rowe, “If the GDP is Up, Why is America Down?” p. 51-8.
152 Cobb, Halstead, and Rowe, “If the GDP is Up, Why is America Down?” p. 51-8.
153 Cobb, Halstead, and Rowe, “If the GDP is Up, Why is America Down?” p. 51-8.
CHAPTER NINE - Lessons from a Depression
154 Paul Krugman, “How Did Economists Get It So Wrong,” New York Times (2 September, 2009).
155 Paul Krugman, “How Did Economists Get It So Wrong,” New York Times (2 September, 2009).
156 “Saving the System, The Panic, The Rescues and a Full Report on the World Economy,” The Economist (11 October 2008).
157 Paul Krugman, “The Third Depression,” New York Times (27 June 2010).
158 The Economist (11 October 2008).
159 Charles Kindleberger, Manias, Panics and Crashes ( New York: Wiley & Sons, 3d ed. 1996), p. 1.
160 Prior to the Weimar Republic (1919-1933), the German national currency was the “mark.” In 1923, in order to counter inflation, the mark was replaced by the “rentenmark.” One year later, when inflation slowed down, the “reichsmark” came into being and remained Germany’s national currency throughout the war years. It was demonetized by a new currency law on June 20th 1948 and replaced by the “deutsche mark,” which was finally replaced by the euro.
161 Glyn Davies, A History of Money: From Ancient Times to the Present Day (Cardiff: University of Wales, 1994), p. 572-4.
162 In 1929, the “Wära Tauschgesellschaft” was founded by two Gesell followers, Hans Timm and Reinhard Rödiger. Claude Million, Ph.D. dissertation, “Nebenwährungen gegen Absatzstockung und Beschäftigungskrise – Die amerikanischen Versuche mit scrip während der Grossen Depression” (Humboldt Universität zu Berlin, April 1998).
163 In 1929, the “Wära Tauschgesellschaft” was founded by two Gesell followers, Hans Timm and Reinhard Rödiger. Claude Million, Ph.D. dissertation, “Nebenwährungen gegen Absatzstockung und Beschäftigungskrise – Die amerikanischen Versuche mit scrip während der Grossen Depression” (Humboldt Universität zu Berlin, April 1998).
164 In 1929, the “Wära Tauschgesellschaft” was founded by two Gesell followers, Hans Timm and Reinhard Rödiger. Claude Million, Ph.D. dissertation, “Nebenwährungen gegen Absatzstockung und Beschäftigungskrise – Die amerikanischen Versuche mit scrip während der Grossen Depression” (Humboldt Universität zu Berlin, April 1998). Letters specific to this case include the letter from the Board of the Reichsbank (I 10513) to the Minister of Finance, dated 8/8/1931 (Bundesbank Archiv R 31.01/15345), p. 145.
165 Margrit Kennedy, Interest and Inflation Free Money (Seva International, 1995): “During the Weimar Republic (1924-33), the central bank's president, Hjalmat Schacht, had the desire to create an ‘honest’ currency in Germany, which—in his understanding—meant a return to the gold standard. Since he could not buy enough gold on the world market adequate to the amount of money in circulation, he began to reduce the latter. The shorter supply of money resulted in rising interest rates, thereby reducing the incentives and possibilities for investment, forcing firms into bankruptcy, and increasing unemployment, which led to the growth of radicalism and finally helped Hitler to gain more and more power.”
166 Alex von Murat, The Wörgl Experiment with Depreciating Money (1934). Also, see Fritz Schwartz, Das Experiment von Wörgl (Bern: Genossenschaft Verlag Freiwirtschaftlicher Schriften, 1951), p. 14.
167 Alex von Murat, The Wörgl Experiment with Depreciating Money (1934). Also, see Fritz Schwartz, Das Experiment von Wörgl (Bern: Genossenschaft Verlag Freiwirtschaftlicher Schriften, 1951), p. 14.
168 Irving Fisher, Stamp Scrip (New York: Adelphi Co., 1933).
169 H.W. Brands, Traitor to His Class: The Privileged Life and Radical Presidency of Franklin Delano Roosevelt (New York: Doubleday, 2008). Quoted in The Economist (1 November 2008), p. 83.
170 See:
See also: Jack P. Greene, and Richard M. Jellison, “The Currency Act of 1764 in Imperial-Colonial Relations, 1764–1776,” The Wi
lliam and Mary Quarterly, Third Series, Vol. 18, No. 4 (October 1961), p. 517. John Phillip Reid, Constitutional History of the American Revolution, III: The Authority to Legislate (Madison: University of Wisconsin Press, 1991) p. 265.
CHAPTER TEN - The Blind Spot
171 John Maynard Keynes, A Tract on Monetary Reform (1923).
CHAPTER ELEVEN - Great Change
172 The National Center for Health Sciences, National Vital Statistics Report 47, no. 28, Table 12. Estimated life expectancy at birth in years, by race and sex: death-registration, United States, 1900-28, and 1929-97 (13 December 1999).
173 K. Bruce Newbold, Six billion plus: world population in the twenty-first century (Lanham, Maryland: Rowman & Littlefield, 2007), p. 6. See also:
environmental-news/latest/world-population-cartograms-47012201?click=main_sr>
174 See:
175 Lily Nonomiya, “Japan's Industrial Production Unexpectedly Declines” Bloomberg News (28 June 2007).
176 Heather Landym, Neil Irwin, “Massive Shifts on Wall St. Troubled Investment Bank To File for Bankruptcy,” The Washington Post, p. A01 (15 September 2008).
177 See:
178 Barry Ritholtz, “Bernanke Bombshell: AIG Insurer Exposed to FP,” 24 March 2009.
179 “The salary boost just about matches the profit increase of 11 percent that Wall Street analysts expect for the oil giant's 2008 profit, now pegged at just over $46 billion, according to a survey by FactSet Research. In 2009, analysts expect Exxon Mobil's annual earnings to fall by about $8 billion to $34 billion as the energy boom turned to bust.” From Steve Gelsi, “Exxon Mobil CEO Tillerson gets 10 percent Raise,” MarketWatch, The Wall Street Journal (3 December 2008).
180 “The Bank of England has now cut UK interest rates to an all-time low of 0.5 percent.” From Christine Oliver, “Interest Rates through the Ages: From Puritanism to Prudence,” The Guardian (5 March 2009).
181 Adam Voiland, “2009: Second Warmest Year on Record; End of Warmest Decade,” NASA (28 January 2010).
182 Stephen Dinan, “Obama signs massive stimulus bill,” The Washington Times (17 February 2009).
183 Sally Goerner, After the Clockwork Universe: The Emerging Science and Culture of Integral Society. (Chapel Hill, NC: Triangle Center for Complex Systems, 1999).
184 Duane Elgin and Coleen LeDrew, “Global Paradigm Change: Is a Shift Underway?” (San Francisco, CA: State of the World Forum, 2-6 October 1996).
185 Thomas Griffith, “This Turbulant World: People's Endless Struggles to Change Their Lives,” Time (5 October 1983).
186 The concept of Great Change was developed by the authors in collaboration with Dr. Sally Goerner (6 February 2006).
187 Amy Maxmen, “The Gut's ‘Friendly’ Viruses Revealed,” Nature, published online, doi:10.1038/news.2010.353 (14 July 2010). “It could be that viruses are the real drivers of the system because of their ability to modify the bacteria that then modify the human host.”
188 Jamshid Garajedaghi, “Systems Methodology: A Holistic Language of Design and Interaction – Seeing through Chaos and Understanding Complexity.”
189 Goerner, After the Clockwork Universe: The Emerging Science and Culture of Integral Society.
190 John Langone, “Alternative Therapies Challenging the Mainstream,” Time Special Issue (Fall 1996), p. 40.
191 John Langone, “Alternative Therapies Challenging the Mainstream,” Time Special Issue (Fall 1996), p. 40.
192 John A. Astin, “Why Patients Use Alternative Medicine,” Journal of the American Medical Association, 279, no. 19 (1998), p. 1548-1553.
193 James Robbins, “Free market flawed, says survey,” BBC News.
194 Paul Ray and Sherry Anderson, The Cultural Creatives (New York: Harmony Books, 1999), with updates based on the original survey by Paul Ray, “The Integral Culture Survey: A Study of the Emergence of Transformational Value in America” (Research Monograph sponsored by the Fetzer Institute and the Institute of Noetic Sciences, 1996).
195 Duane Elgin and Coleen LeDrew, Global Paradigm Change: Is a Shift Underway? (San Francisco, CA State of the World Forum, 2-6 October 1996).
196 Duane Elgin and Coleen LeDrew, Global Paradigm Change: Is a Shift Underway? (San Francisco, CA State of the World Forum, 2-6 October 1996).
197 Paul Hawken, Blessed Unrest: How The Largest Movement in the World Came Into Being and Why No One Saw It Coming (New York: Viking Press, 2007).
198 Goerner, After the Clockwork Universe: The Emerging Science and Culture of Integral Society.
199 Astin, “Why Patients Use Alternative Medicine.”
CHAPTER TWELVE - Efficiency, Resilience, and Money
200 Modern energy concepts and flow analyses were actually formally applied to economics as early as 1951, by Nobel laureate Wassili Leontief with his input-output analyses, modeling the flow of goods and value in economic systems. Ecologists then applied these same flow concepts and analyses to ecosystems, only to have economists later reapply these enhanced energy understandings to economics. Odum (1971, 1984), Hannon (1973), and Costanza (1984), for example, have all used thermodynamics and flow-network analysis as the basis for understanding the activities in both economic and ecosystem networks; and Georgescu Roegen (1971) developed an entire thermodynamic foundation for economics. Paul Samuelson stated in 1965, in the Preface to Roegen’s Analytical Economics, that he considers Roegen as “A scholar’s scholar, and an economist’s economist.” He added: “I defy any informed economist to remain complacent after meditating over this essay.” Nevertheless, complacency is what has greeted that book and its successor, Entropy Law and the Economic Process.
201 Predrag Cvitanovič, Introduction to Universality in Chaos (Bristol, UK: Adam Hilger), p. 11.
202 See: Robert Ulanowicz, Sally Goerner, Bernard Lietaer, and Rocio Gomez, “Quantifying Sustainability: Efficiency, Resiliency and the Return of Information Theory,” Journal of Ecological Complexity. The original paper is also available for download on
203 R.M. May, “Will a large complex system be stable?” Nature 238:413-414 (1972).
204 C.S. Holling, “Resiliency and the stability of ecological systems” Annual Review of Ecology and Systematics, 1973; and Brian H. Walker, John M. Anderies, Ann P. Kinzig and Paul Ryan, “Exploring Resiliency in Social-Ecological Systems: Comparative Studies and Theory Development” in a special issue of Ecology and Society, 2006. Guest editors, Walker, Anderies, Kinzig, and Ryan, (Collingwood, Victoria, Australia: CSIRO Publishing). Online version:
205 Graphic was originally published in S. Goerner, R. Dyck, and D. Lagerroos, The New Science of Sustainability: Building a Foundation for Great Change (Chapel Hill, NC: Triangle Center for Complex Systems, distributed by Gabriel Island, BC, Canada: New Society Publishers, 2008). Modified graphic in S. Goerner, B. Lietaer, R. Ulanowicz, R. “Quantifying economic sustainability: Implications for free enterprise, theory, policy and practice.” Ecological Economics 69 (1), p. 76-81.
206 In the original literature this window is called a “window of vitality” given its biological meaning in natural ecosystems. An ecosystem can support complex life forms only within this range. See R.E. Ulanowicz, A T
hird Window: Natural Foundations for Life (New York: Oxford University Press, 2008); and A.C. Zorach, and R.E. Ulanowicz “Quantifying the complexity of flow networks: How many roles are there?” Complexity 8(3): 68-76 (2003).
207 “On Aug. 14, 2003, more than 50 million North Americans find themselves without power in the most widespread blackout in the history of electrical civilization.”
science_technology/energy_production/clips/13545/>
208 V.V. Gafiychuk, I.A. Lubashevsky, and R.E. Ulanowicz, “Distributed self-regulation in ecological and economic systems,” Complex Systems 11 (1997), p. 357-372.
CHAPTER THIRTEEN - Sustainable Development
209 See: Robert Ulanowicz, Sally J. Goerner, Bernard Lietaer, and Rocio Gomez, “Quantifying Sustainability: Resilience, efficiency and the return of information theory,” Ecological Complexity, 6(1), (27 March 2009), p. 36. “Since sustainable development requires a balance of efficiency and resilience, Ulanowicz (1980) used configurations of flow pathways and magnitudes in natural ecosystems to develop a measure of network efficiency called the Systemic Efficiency (SE or E), which gauges overall system performance as well as its ability to pull more and more energy into its sway, while reducing extraneous diversity/connectivity.” The original paper is also available for download on:
New Money for a New World Page 35
