equations for economy paper

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  • 7/30/2019 Equations for Economy Paper

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    \sum_{t=1}^{x}[PE(C_t)]-\sum_{u=1}^{z}[RAPR(R_u)\cdot YR(R_u)]+YoGE

    BE(B_s)=\sum[PE(workers)+ASL(workers)]+PPC(B_s)

    \sum_{t=1}^{x}[{CoL(C_t)+\sum_{n=1}^{YW}ASL(C_t,y_n)}]+\sum_{s=1}^{y}[CoP(B_s)

    +SNL(B_s)]-\sum_{t=1}^{x}[CoL(C_t)]-\sum_{u=1}^{z}[RAPR(R_u)\cdot YR(R_u)]+YoGE

    At the end of the month, before payday, we see that:

    \sum_{s=1}^{NoB}[BE(B_s,M_{c+1})]=\sum_{t=1}^{NoWC}[PE(C_t,M_{c+1})+ESU(C_t,M_{c+1})

    +SSA(C_t,M_{c+1})]+\sum_{s=1}^{NoB}PPC(B_s,M_{c+1})

    And since

    \sum_{t=1}^{NoWC}[PE(C_t,M_{c})+ESU(C_t,M_{c})]

    +\sum_{s=1}^{NoB}PPC(B_s,M_c)\rightarrow \sum_{all}Businesses

    If for all functions of Mc, the same function calculated at Mc+1 is the same, then the deficit for all

    businesses in month c+1, disregarding the Safety Net, is:

    \sum_{t=1}^{NoWC}[SSA(C_t,M_{c+1})]

    Supposing this deficit is present month to month, where the money gets stored in a Savings Account, the

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    deficit would amount to

    \sum_{t=1}^{NoWC}\sum_{m=1}^{NoMW(C_t)}[SSA(C_t,m)]

    This savings deficit is funded by recycling itself. All money, even saved money, goes somewhere;

    furthermore, once its there, it goes somewhere else. Thus all Stored Savings Amounts are recycled (chiefly

    during ones retirement. Suppose that Stored Savings Amounts for all people are depleted upon the end of

    retirement (or death). Then clearly,

    \sum_{p=1}^{NoRP}\sum_{m=1}^{NoMW(R_p)}

    [SSA(R_p,m)]=\sum_{p=1}^{NoRP}\sum_{m=1}^{NoMR(R_p)}[PE(R_p,m)]

    Now, we know that:

    \sum_{p=1}^{NoRP}\sum_{m=1}^{NoMR(R_p)}[PE(R_p,m)]\rightarrow Businesses

    Now, the Citizens Reserved Savings Amountis, as seen above (3), negative. And so, keeping the same

    supposition (of retired citizens having had died), the money from those retired can be used to offset thedeficit (the negative amount).

    CRSA(\bigcup_{all\: s}B_{s})=-\sum_{t=1}^{NoWC}\sum_{m=1}^{NoMW(C_t)}[SSA(C_t,m)]

    +\sum_{p=1}^{NoRP}\sum_{m=1}^{NoMW(R_p)}[SSA(R_p,m)]

    Now, suppose that for all Rp, there are citizens, Ct such that SSA(Rp,m)=SSA(Ct,m) (ie. Suppose that for

    each retired person, there is a citizen who has the same Savings Amount Reserved)

    CRSA(\bigcup_{all\: s}B_{s})=-\sum_{t=1}^{NoWC}\sum_{m=1}^{NoMW(C_t)}[SSA(C_t,m)]

    +\sum_{t=1}^{NoRP}\sum_{m=1}^{NoMW(C_t)}[SSA(C_t,m)]

    Then,

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    CRSA(\bigcup_{all\: s}B_{s})=-\sum_{t=1}^{NoWC-NoRP}\sum_{m=1}^{NoMW(C_t)}[SSA(C_t,m)]\\

    \\ for\; NoWC\geq NoRP

    Or

    CRSA(\bigcup_{all\: s}B_{s})=\sum_{t=1}^{NoRP-NoWC}\sum_{m=1}^{NoMW(C_t)}

    [SSA(C_t,m)]\\ \\ for\; NoRP\geq NoWC

    We see that if theNumber of Retired People andNumber of Working Citizens is the same, then the Citizens

    Reserved Savings Amountis balanced (or zero) - meaning absent of a deficit or surplus. And since theStored Savings Amountaddressed above is the cumulative value of earnings for a retired citizen, their

    Stored Savings Amount, having would been recycled back into the economy would supply a newly

    employed citizens Stored Savings Amountfor life (assuming they require the same amount). Therefore, if

    the count of the deceased is equivalent to the number of new workers (receiving the same pay as the

    aforementioned deceased), no money needs to be created (making the Citizens Reserved Savings Amount

    zero). If there happen to be more new workers than deceased, then the government should assume the

    responsibility of making money to replenish the deficit as it would be calculated in the Citizens Reserved

    Savings Amount. (Note: we could create a more complicated function to determine the exact amount ofmoney needed, however this method (of comparing the number of deceased and newly employed) yields

    the same results - that is: when records are kept of the difference between the actual value and the expected

    value - so as to balance the equation).

    Another way to look at the amount of money needed is by the following calculation