Thinking in Systems: A Primer

by Donella H. Meadows

Which outcome actually occurs depends on two things. The first is the critical threshold beyond which the resource population’s ability to regenerate itself is damaged. The second is the rapidity and effectiveness of the balancing feedback loop that slows capital growth as the resource becomes depleted. If the feedback is fast enough to stop capital growth before the critical threshold is reached, the whole system comes smoothly into equilibrium. If the balancing feedback is slower and less effective, the system oscillates. If the balancing loop is very weak, so that capital can go on growing even as the resource is reduced below its threshold ability to regenerate itself, the resource and the industry both collapse.