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 Model

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