Economic flywheel

In the book Good to Great the concept of the Flywheel and the Doom Loop are presented as two patterns organizations follow to build momentum or fail. The economy is an organization. "The Flywheel: The additive effect of many small initiatives; they act on each other like compound interest," applies to the economy as much as it applies to a company or civic organization.
is energy transferred by, a force acting through a distance.
The concepts of the Flywheel and energy being applied provides a good model to understand the economy as well as companies or civic organizations.
Energy efficiently applied (red) by labor (blue) generates work (yellow) adding momentum. Errors made, taxes collected and other consumption decreases momentum. Governments (purple) both adds to and consumes momentum as they add to value and tax to support their contributions. The greater the Disposable Energy, the more Labor required to apply that energy to create Economic Work, the more work adds momentum to the Economic Flywheel. Unfortunately, the contrary is also true.
File:EconomicFlywheel.png

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