The Spending Pressure Model

Models of the economy include simple drawings, complex math equations, and even analogue computers using fluids and pipes to mimic the circulation of income, taxes, savings and investment flows.

Here is the famous Monetary National Income Analogue Computer (MONIAC) invented by Bill Phillips in 1949, which used a water pump to actually pressurize colored fluids from one tank to another “to represent taxation.”[1]

Although the MONIAC had its fans, the “Phillips Curve” it was used to derive fell into disrepute by the 1970s.  Our Spending Pressure model is not so ambitious, but still draws on the “fluid logic” that taxes pump out dollars from the private economy, and that differential pressure is exerted on parcels of real estate depending on the location of that real estate in relation to the differential behaviors of disparate taxing jurisdictions.

As a result, Spending Pressure can not only be calculated, but geolocated.  We don’t need to create a model of the whole economy.  We can simply map the Spending Pressure in your own personal economy.  Right where you live, or may want to live,  in the economic units of your town, county, state and country.  There’s a tradeoff between what you keep and what the government takes.  Different zones have different pressures, based on the volume of taxes different units of government trade for your personal assets. 


[1] Wikipedia:  https://en.wikipedia.org/w/index.php?title=MONIAC&oldid=1100226655