2. Natural Economic Model
• Heart stands for Married Couples
• Diamond stands for The Rich
• Spade stands for Labor Force
• Club stands for Government
3. Corollaries
• More Diamonds (The Rich), Higher
GDP level
• Less Diamonds (The Rich), Flight of
Capital
• More Hearts (Married Couple),
Greater Aggregate Demand
• Less Hearts (Married Couple),
Economic Recession
• More Spades (Skilled Labor), More
Personal Income
• Less Spades (Skilled Labor), Less
Taxes
4. Evidence-I
In every economy, there are four
basic abovementioned groups.
Government levies direct taxes on
the rich and well-off to pay for the
poor and labor force. It costs
Government to maintain institutions
of Central Bank and Treasury. In
Pakistan, Central Bank is called State
Bank of Pakistan whereas Treasury is
called Federal Board of Revenue.
Evidence-II
Natural Economic Model is in vogue in
the world especially in the United
States, China, France and Japan. Every
economic group is free to change its
status e.g. a laborer can become a rich
person. Developing countries must
adopt this model to apply monetary and
fiscal policies.
Evidence-III
In a casino, every group comes and
wins. If one group wins at the cost of
others, it is unfair business.
5. Key Benefits
• Natural Economic Model is a pre-
requisite for applications of
modern economic initiatives and
techniques.
• Natural Economic Model gives
importance to resources
especially human capital.
• This model simplifies macro-
economic framework for students
of Economics.
Discussion
Q: Is Natural Economic Model universal
in application?
A: Yes.
Q: Does Natural Economic Model mention
international trade?
A: It clearly mentions flight of capital from
one country to another.
Q: Can anyone comment on the Natural
Economic Model?
A: Suggestions are welcome, however,
Muhammad Ilyas, former LUMS
lecturer is welcome to critically
appreciate the model.
Q: Is this model worth awarding?
A: Yes.
Sajid Imtiaz: Communications Expert DKN, Chief Editor Daily 10 Minutes
6. Key Benefits
• Natural Economic Model is a pre-
requisite for applications of
modern economic initiatives and
techniques.
• Natural Economic Model gives
importance to resources
especially human capital.
• This model simplifies macro-
economic framework for students
of Economics.
Discussion
Q: Is Natural Economic Model universal
in application?
A: Yes.
Q: Does Natural Economic Model mention
international trade?
A: It clearly mentions flight of capital from
one country to another.
Q: Can anyone comment on the Natural
Economic Model?
A: Suggestions are welcome, however,
Muhammad Ilyas, former LUMS
lecturer is welcome to critically
appreciate the model.
Q: Is this model worth awarding?
A: Yes.
Sajid Imtiaz: Communications Expert DKN, Chief Editor Daily 10 Minutes