Teaching other students to earn chits to pay other student-teachers to teach one a new topic.
Original endowment
Endowment of natural resources to start process (as original unearned resources to buy imports).
Inherited chits to start taking a course.
How success forces players to next level
Exports to a creative city will soon be replaced forcing a city to generate new exports.
Courses successfully taught will dry up the students willing to take the same course, so teacher has to learn something new to teach.
Desert
Imports (however funded) are just consumed with no attempt to stretch or replace them.
Course taken (however funded) but no learning and no subsequent teaching.
Rain forest
Imports are assimilated, stretched, and modified in a diversity of products. City is in an excellent position to innovate and export goods. This is easier in a diverse city with many entry points to assimilate and creatively use imports.
Course knowledge feeds into a number of “hooks” or “entry points” so a student has an in-depth understanding of topic and is in an excellent position to teach—perhaps in new courses. This is easier in a student with more diverse knowledge.
Export processing zone
Imports get a little processing and are then reexported.
Courses not really learned but mechanically used to teach others with little real understanding oneself.
Advanced-backward trade
Science fiction import cannot be stretched or replaced. Not assimilated in that sense. Stops the dynamic.
Course at too advanced level so little is learned or assimilated. Stops the dynamic.
Supply regions
Regions that produce something, natural resources, agricultural outputs, or a military supplier that is not part of a Jacobs’ Ladder dynamic (inert partners with steady demand) so it is lulled into just using its earnings to buy imports and has lost the necessity and capacity to replace the imports. It has stopped learning and becomes specialized.
Finds that teaching in a specific field goes on and on so one can take other courses but it is not really necessary to learn them to teach in the new topics. Slides outside the dynamic of teaching, students learning to teach, teacher needing to learn a new topic, and so forth.
Unearned imports
Unearned imports paid for with subsidies given perhaps for charitable or political reasons.
Getting unearned chits to take a course—perhaps for charitable or political reasons.
Transactions of decline
Even though it may be an advanced creative city ultimately providing subsidies (through the government) to backward regions that turn around and give demand for the city’s exports, there is no creative partner, so the city gets locked into becoming a supply region to inert subsidized partners. Sustained use of taxes for military expenditures on a city’s products is the same type of pattern locking the city into becoming an industrialized supply region.
Good student-teachers provide some scholarship chits for backward students who can thus pay for the better teachers’ courses. But the backward students might not learn or progress (since the chits were unearned by their own learning and teaching). One is outside the positive dynamics of teaching students who learn so teacher uses fees to take another course, which can then be used for teaching, and so forth. Teachers may fall into an inert pattern of teaching to subsidized unlearning students.
Remittances
Remittances, being unearned where they are spent on imports back home, do not lead to learning, import stretching, or replacement.
Getting chits unearned by teaching (earned in some other way elsewhere) so the student would have little capacity to learn anything to kick off the learning-teaching dynamic.
Specialization to comparative advantage
Each city specializes so it does not learn from imports, and other cities similarly don’t learn from its exports. They are in a static “equilibrium” until the products are obsolete and competition from outside the specialized trading group exposes their inertness.
Some students decide to specialize and then take in each other’s laundry (each teaching their own specialty to unlearning students). The situation repeats itself. When new knowledge finally comes from outside, neither will be able to learn it.
How transplants can attenuate the dynamics on the importer-student side
Exporters who transplant a factory to the importing city so product will be “produced locally” are in fact attenuating the dynamic as it forestalls genuine import replacement. Importing cities might compete to get the transplant factories so they could quickly get into the “producing-and-exporting” business without going through the time-consuming process of learning to produce themselves.
If teacher offers to teach (with lower return) “for” the students, then the students get some return (as student-assistants) but don’t learn in order to teach the topic themselves. Students might even compete to offer deals to teacher to teach for them so they can quickly get in the “teaching” business without going through the time-consuming process of learning to teach the topic themselves.
How transplants can attenuate the dynamics on the exporter-teacher side
Since previously exporting city is now benefiting (owners, not workers) from having the product produced locally in the previously importing city, there will be no real import replacement, so the partner has become inert. The exporting city can thus sterilize potentially creative import-replacing partners so that it can continue doing the same thing.
If the teacher can teach “for” the student, the student will not replace the demand for teaching that topic by learning, so the student-partner has become a relatively inert student-assistant. By doing this for the potentially learning students, the teacher can render their learning to teach unnecessary so the teacher can continue doing the same thing.
Source: Author.
The Jacobs University analogue clarifies some difficult points. Conventionally, the emphasis is on export-driven growth, but Jacobs puts the emphasis more on imports and the process of stretching and replacing them. Seeing an import as a crystalized packet of codified knowledge and tacit production know-how, learning to replace an import is analogous to taking a course and assimilating the knowledge perhaps improving on it and then being able to teach others (reexport the improved product). Thus, the exports are basically the means to pay for the imports, and the important thing is what happens in between—learning to replace the imports and developing new exports.
Another difficult point for those accustomed to “static” models of growth is the inherent dynamism of the Jacobs model. The school analogy captures this nicely since a school that just keeps on repeating the same courses to the same unlearning students is a clear failure even though it might have an increasing volume of repeating students in its circular flow. In the Jacobs University model, imagine two initial sets of “specialized” student-teachers. One set teaches mathematics to the other set and that other set teaches postmodernism to the math set. Each set finds the other topic totally incomprehensible, so they keep repeating the taking and teaching of the courses in a static equilibrium. Each repeats its comparative advantage. But there might be some unemployed members of each set. The university administrators could have a one-time pump-priming injection of chits into both groups so that the unemployed members could now be employed to teach their topic and to thus pay for being students of the other topic. The system would then have “growth” to a higher-level equilibrium—like giving a one-time push to a frictionless wheel
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