Transcript Modeling Economic Systems Aaron Salls Pd. 3 January 26, 2006

Modeling Economic Systems
Aaron Salls
Pd. 3
January 26, 2006
Background
• Adam Smith’s Capitalism vs. Karl Marx’s Communism
• Regulation vs. natural forces of supply and demand
• Real-life scenarios indicate that regulation is bad,
namely, the regulation that led to the stagflation of the
1970s
• Deregulation of airlines allowed supply and demand to
command the market, allowing for greater profit and
distribution of wealth
Procedure
• Built upon “Bank Reserves” model
• Removed individual interaction
• Assigned all agents as employees of one of
three companies, all vying for the business
of the entire population
• Agents paycheck dependent on the
success of the company
• Investments into the company redistribute
the wealth
Figure 1. Screen Capture of the
Problem / Analysis
• Currently, model is more socialistic in
nature (no return on investment (ROI), no
CEOs/entrepreneurs)
• The model is very, very simplistic. There is
room to expand to include variable
population, government regulation, taxes,
etc.
Figure 2. Fairly normal distribution of
wealth in model
Figure 3. Money Increase w/ Interest