The flow of money seems to captivate the human mind; an interesting thought to ponder in and of itself. With our research, we don’t tend to look at economics in the jargon filled way many in the field seem to, but, as is often wise to do with everything, we look at Economics with a unique large-scale and large time-frame perspective. Since much of our team’s background is in the physical sciences, problems are often approached from this angle and Economics is no different. Consequently, it likely isn’t a coincidence that people use many of the same words to describe finances as physicists and engineers do fluid dynamics (flow, turbulence, pooling, liquid, fluid, etc.). It suggests that some of the deeply underlying mathematics are the same.
The first question we’re investigating is trying to determine the effect income disparities have on the economy; positive or negative. The data sets for this are huge and complex. This cannot be understated. They take a significant amount of time to parse through and a lot of information has to be melded together to come to any sort of satisfactory conclusion. Figuring out how these incredibly complex and interrelated sets of data fit together is almost akin to conducting a musical symphony.
Another question we’d like answered and that we’ve begun to investigate is: “What is the actual potential of an economy?” – if it was firing on absolutely all cylinders and political policy was perfect. This isn’t the simple concept of zero unemployment but rather about optimal income distribution to achieve maximum economic output. What is the theoretical “perfect” economy? Even in this “perfect” economy, you will still have non-zero unemployment due to employee churn. There are several avenues to answering this question and we are currently exploring the most promising ones.