Bathtub Economics

Most people – including policy makers and politicians- don’t understand economics. How can they be expected to when it seems from the outside to be and important but obscure art? There are, however, some basic concepts that if everyone knew and took into account, our societies could function better and more peacefully.

Bathtub economics is a series of models created by the Swedish Sustainable Economy Foundation to help explain the basic of economics and, in the age of total digitalization, how modern technology can stabilize the economy so it performs to purpose.

  • The analogy of money as water, flowing from account to account
  • The idea that taxes, fees and subsidies act as control valves in the system
  • How each part of the system is dependent on the other
  • Money can be better understood from a stock and flow viewpoint
A short introduction. Bathtub economics – The Movie!

Read more about Bathtub economics here.

Visit our Circular Economy School to learn how Bathtub economics and the Circular economy fit together.