Economics is a fun subject. The flow of money seems to captivate the human mind so much, an interesting thought to ponder in and of itself. Regardless, I don’t tend to look at economics in the jargon filled way many in the field seem to, but from a perspective from the outside and physics in particular. I don’t think its a coincidence we use many of the same words to describe finances as we do fluid dynamics (flow, turbulence, pooling, liquid, fluid, etc.). It suggests that some of the deeply underlying mathematics may be the same. That said, I’m also quite comfortable with very large data sets and some of the more complex math as well as taking a step back to see what it all means. To that end, there are some questions I have that no one has answered that I’d like to see if I could tackle.
The first question I’ll probably take a stab at is to try to determine the effect income disparities have on the economy; positive or negative. The data sets for this are huge and complex. You have to meld a lot of information together to come to any conclusion. However, I did this once already, but my computer crashed and I unfortunately lost the work.
Another question I’d like answered, that I’ve begun to think about the steps required to answer, is what is the actual potential of an economy, if it was firing on absolutely all cylinders and political policy was perfect. I’m not talking about no unemployment but rather about optimal income distribution to achieve maximum economic output. Even in the perfect economy you will still have non-zero unemployment due to employee churn. I don’t know that answer and no one else does so I’d like to investigate it further. There are a couple of ways I’ve thought of going about it but haven’t come to any definitive conclusions. It’s just a question that needs answering.
I’ll update this a little bit more when I make some progress towards answering those questions.