Tag Archives: systems theory

Traditional economic theory is rooted in a 19th- and 20th-century understanding of science and mathematics. At the simplest level, traditional theory assumes economies are linear systems filled with rational actors who seek to optimize their situation. Outputs reflect a sum of inputs, the system is closed, and if big change comes it comes as an external shock. The system’s default state is equilibrium. The prevailing metaphor is a machine. But this is not how economies are. It never has...

Longish but important.  Downloadable as a PDF. Scroll down to the end.Donella Meadows ArchiveLeverage Points: Places to Intervene in a System Donella Meadows ht Roger Erickson